Tax Credit - United Kingdom

http://www.ukfilmcouncil.org.uk/
The aid takes the form of an enhanced tax deduction and a payable
film tax credit. The enhanced tax deduction allows a film production company to
benefit from a higher deduction for certain production costs than the normal UK tax
rules would allow. The payable film tax credit allows the film production company to
receive a cash payment of up to 25% of any tax loss (after applying the enhanced tax
deduction). The costs which qualify for the aid are the pre-production, principal
photography and post-production expenditure by the beneficiary on goods or services
that are used or consumed in the UK (“qualifying UK costs”).
The details of the two components of the aid are as follows:
(a) The enhanced tax deduction allows up to 80% of the total qualifying UK
costs (which can be deducted in full under the normal UK tax rules) to be
deducted again from the taxable profits of the beneficiary at the following
rates: 100% in the case of a film whose pre-production, principal photography
and post-production expenditure is £20 million or less; 80% in the case of films
with a higher production budget. The film production company can set this
additional deduction against income from the film in question, reducing its UK
tax liability for income generated by the film.
(b) The payable film tax credit allows a film production company to claim a cash
payment for any tax loss (after applying the enhanced tax deduction) up to the
80% limit on the qualifying UK costs mentioned above. The UK Government
pays the film production company a cash payment of 25% of the losses in the
case of a film whose total pre-production, principal photography and post-
production expenditure is £20m or less; and 20% in the case of films with a
higher production budget. These losses can no longer be set against income or
relieved in any other way.
The way that the 80% limit on the qualifying UK costs is applied (see paragraph (18))
means that neither the enhanced tax deduction nor the payable film tax credit can be
claimed on the remaining 20% of the qualifying UK costs incurred by the beneficiary
or on other costs related to making the film. Therefore, any expenditure above 80%
(and any non-UK expenditure on the film incurred by the beneficiary) is dealt with
under the UK’s normal tax rules.
Remember to exclude the tax credit from your film budget.
Check QuickFilmBudget.com for a sample film budget!

Tax Credit - TRINIDAD & TOBAGO

http://www.trinidadandtobagofilm.com/incentives.asp
The Trinidad & Tobago Film Company (TTFC) has recently introduced a competitive rebate program with a view towards attracting International producers to Trinidad & Tobago. This incentive, the Production Expenditure Rebate Program, provides cash rebates up to 30% for expenditures accrued while filming in these two islands. The rebate increases as the budget spent increases.
These rebates apply for the following areas of filmmaking:

Rental of local equipment, supplies and services
Payment to the Police, Fire and Ambulance Services
Wardrobe, props and related items
Location fees
Employment of local cast and crew
Accommodation and food
Local travel and transportation costs (including drivers)
The TTFC will evaluate the applications with special reference to:

The total estimated expenditure in Trinidad and Tobago
The level of employment of Trinidad and Tobago crew
A script that does not portray Trinidad and Tobago in a negative light.
Remember to exclude the tax credit from your film budget.
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Tax Credit - TAIWAN, REPUBLIC OF CHINA (ROC) - Taipei City

Taiwan offers a film incentive in the form of a cash grant. The benefit, if all eligibility requirements are met, is that the film receives 20% of total personnel expenses for ROC national cast members; 15% of the total expenses for ROC nationals working as crew members for motion pictures filmed partially or entirely in Taiwan. If filmed and pre-produced or post-produced partially or entirely in Taiwan, there is an additional grant of 15% of local production expenditures. There are also incentives for qualifying animation projects and an additional grant of 5% for transport and accommodation expenses and insurance costs. There are no caps to the compensation for a film. The government has designated US$1,000,000 to the fund per year. The only criteria to qualify is that the local minimum spend is greater than US$100,000. The entities eligible to apply are foreign motion picture production enterprises with permission from the Government Information Office (GIO). At this time, there does not exist a sunset or review deadline to this film incentive program.
Remember to exclude the tax credit from your film budget.
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Tax Credit - South Korea-Seoul

http://eng.seoulfc.or.kr/
Film Production-Support Program
Provides up to 25%, or up to 100,000,000 KRW (approx. 89,000US$), as cash rebate on production costs (location spend) for film projects to be shot in Seoul. For projects with extraordinary high marketing value, the cap can be lifted.

Eligibility
Producers or production companies of any nationality with:
• A project with a minimum 6 shooting days (4 shooting days for infotainment) in Seoul
• An international or Korean-international co-production project
• A project with a minimum of 60 minutes running time
• A feature film, documentary, series and mini series, infotainment; theatrical or TV
• At least one signed distribution contract or pre-sales agreement for the project

Application
Accepted all year round, but at least 4 weeks before the shooting in Seoul begins.

Payment
50% cash on first day of principal photography, 50% cash after submission of final accounting*
* With performance bond policy. Without performance bond policy: 100% after submission of final accounting.
Remember to exclude the tax credit from your film budget.
Check QuickFilmBudget.com for a sample film budget!

Tax Credit - South Korea-Pusan

http://www.koreanfilm.or.kr/
Out of Pusan a plan has been created by seven Asian film commissioners to create an Asia wide film incentive program. Many regional and national film commissions from Asian countries already offer incentive programs but this is the first time that a pan-Asian program has been discussed. At this stage, the form this program will take will be as a system that reduces customs and tariff formalities. Included in the agreement is the development of co-operation programs to encourage cultural understanding between Asian countries and therefore boost inter-cultural film business. The joint declaration was made by the Korea Film Council (KOFIC), the Multimedia Development Corporation of Malaysia, the Film Development Council of the Philippines, the Japan Film Commission, Thailand's Film Office, the Nepal Film Development Board and the new Cambodia Film Commission.

The announcement was made at the Film Policy Plus (FPP) organized by the Asian Film Commissions Network (AFCNet) and the Busan Film Commission which took place at this year's Busan International Film Festival. As well as customs and tariffs the agreement expects to capitalize and work within the rebate and incentive programs offered by other Asian countries. Busan itself offers 30% of all shooting costs up to 100 million Korean won ($86,000) and further north the Kyeonggi-do region offers a similar program.

A U.S. $20 million film fund created by KOFIC which partners with the private sector is also being planned. 15% of this fund will go towards investments in international co-productions.
Remember to exclude the tax credit from your film budget.
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Tax Credit - South Africa

http://www.thedti.gov.za/film/filmincentive.htm
Location Film and Television Production Incentive

The Location Film and Television Production scheme will replace the Large Budget Film and Television Production Rebate, which the dti implemented in 2004.

This component is only available to foreign-owned productions with Qualifying South African Production Expenditure (QSAPE) of R12 million and above. It provides a rebate of 15 per cent of the QSAPE to qualifying productions in the following formats: feature films, telemovies, television drama series, documentaries, animation and short form animations. Its aim is to attract large-budget overseas film and television productions to South Africa.

South African Film and Television Production and Co-Production Scheme

The South African Film and Television Production Incentive is being introduced in order to provide more financial support for locally-owned productions and co-productions.

This component is available to both South African productions and official treaty co-productions with a total production budget of R2,5 million and above. It provides a rebate of 35 per cent for the first R6 million, and 25% for the remainder of the qualifying production expenditure. The following formats are eligible: feature films, telemovies, television drama series, documentaries, animation and short form animations.

The value of the rebate for any qualifying production is capped at a maximum of R10 million.
Effectively, the following key changes are being introduced:

The reduction of the threshold from R25 million QSAPE for foreign-owned productions to R12 million;

A differential requirement that local-owned productions and co-productions must have at least R2,5 million of total production budget;

An increase of the rebate from 25% up to 35% for local productions in order to ensure higher financial support for local productions;

The reduction of the threshold will make the bundling of productions unnecessary for producers

The provisions of the incentive will encourage production companies to advance industry transformation through adherence to the requirements of Broad-Based Black Economic Empowerment.
Remember to exclude the tax credit from your film budget.
Check QuickFilmBudget.com for a sample film budget!

Tax Credit - Philippines

PHILIPPINES Film Commission does not have a website.
Discounts and a tax holiday have been introduced to attract foreign filmmakers.

Remember to exclude the tax credit from your film budget.
Check QuickFilmBudget.com for a sample film budget!

Tax Credit - Norway

http://www.norwegianfilm.com/

A proposed incentive has been introduced with a 15% rebate on qualifying expenditures. Drafts of the regulations are under approval.
Remember to exclude the tax credit from your film budget.
Check QuickFilmBudget.com for a sample film budget!

Tax Credit - New Zealand

www.nzfilm.co.nz/
In New Zealand, there are three types of Incentive: Large Budget Screen Production (LBSP) Grant (cash grant), the Post, Digital, Visual Effects
Production (PDV) Grant (cash grant), and the Screen Production Incentive Fund (SPIF) (cash grant).
If eligibility requirements are met, the benefits are 15% of qualifying local spend (QNZPE) for LBSP and PDV Grants; 40% of qualifying local spend (QNZPE) on eligible feature films, and 20% on eligible television, documentary and short form animation for SPIF Grant. There is no ceilings on compensation for LBSP and PDV; however, the maximum amount eligible for QNZPE for any individual project is NZ$15,000,000 for SPIF Grant; no caps on projects or funding per year for LBSP and PDV
The project criteria for these grants are a minimum QNZPE = NZ$15,000,000 for LBSP; or NZ$3,000,000 in post-production digital and visual effects work; bundling of productions costing a minimum of NZ$3,000,000 to meet the NZ$30,000,000 QNZPE over 24 months; bundling of episodes (completed within 12 months) averaging NZ$500,000 per hour is permitted to meet the minimum spend. For SPIF Grant, minimum QNZPE = NZ$$4,000,000 for eligible feature films, NZ$1,000,000 for eligible series of programs, NZ$1,000,000 for eligible single episode program, NZ$250,000 for eligible documentary, NZ$250,000 for eligible short-form animation, and all eligible projects must contain significant New Zealand content; official co-productions of feature films or television programming produced under 1 of New Zealand’s co-production agreements will automatically qualify as having significant NZ content and may be eligible to apply for an SPIF Grant. To be an eligible entity, you must have a New Zealand resident company or a foreign corporation operating with a fixed establishment in New Zealand for the purposes of lodging an income tax return (both when it lodges the Grant application and when the Grant is paid). These incentives are scheduled to be scheduled in 2011 for LBSP and PDV Grants and for 2012 for SPIF Grant.
Remember to exclude the tax incentive from your film budget.
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Tax Credit - Malta

http://www.mfc.com.mt/
The incentives are in the form of a cash grant given to eligible productions on the qualifying expenditure incurred in Malta. Up to 22% of the eligible expenditure can be obtained as a cash rebate by a qualifying production company once filming is complete.

Feature film and television productions, mini-series, animation and documentaries are all eligible for the incentives, provided that they are at least partially produced in Malta.

Value Added Tax, stands at 18% and is fully refundable to productions on all goods and services. Click on the link to the left for further information.
Remember to exclude the tax credit from your film budget.
Check QuickFilmBudget.com for a sample film budget!

Tax Credit - Friuli Venezia Giulia

http://www.fvgfilmcommission.com/english/fund_eng/fundover_eng.htm
Overview
With the FVG Film Fund the Autonomous Region of Friuli Venezia Giulia will be actually able to finance an audiovisual project using direct funds. Productions filming in Friuli Venezia Giulia will be entitled to apply for a grant in cash up to 140.000 Euro, depending on the production's period of stay in the regional territory.

Of course, as regularly is with all institutions of so-called "expense acceleration", the Friuli Venezia Giulia fund settles some grantee liabilities.

The main liabilities are:
A) At least 150% of the regional grant must be spent in the region itself, with the exception of crews and investment expenses

B) Filming in the region must equal at least 70% of the entire external filming of the cut, and at least 50% of the total filming of the cut , except for productions filming in the region for less than 5 weeks and for serials of more than 2 episodes. As far as the letter are concerned, filming in the region must equal at least 10% of the entire external filming of the cut.

Added value are the useful and free services provided by the film commission, such as location scouting, location visits, permits and the liaison with local authorities and professionals.
Remember to exclude the tax credit from your film budget.
Check QuickFilmBudget.com for a sample film budget!

Tax Credit - Italy

http://www.filminginitaly.com/tax_00.aspx
The Italian Parliament has enacted a law providing for generous tax credits for investments in Italian films. The purpose of the law is to provide an incentive for the investment of resources in Italy. The support is available for works of Italian nationality (involving minimum content shot or expenses incurred in Italy), those originally expressed in the Italian language, or those of cultural interest.
In effect for the tax years 2008, 2009, and 2010, the law provides for tax credits of up to €5 million ($6.5 million) for producers, distributors, movie theater owners, and technical industries. The law also provides for the sheltering of profits, not only for film production and distribution companies, but also for companies not previously operating within the film sector. The limits for these shelters start out at a maximum of €5 million ($6.5 million) for the 2008 tax year and increase to €10 million ($13 million) for 2009 and €15 million ($19.5 million) for 2010.
The implementation of the law is subject to European Union approval to ensure that it complies with EU guidelines with regard to aid at the national level.
Remember to exclude the tax credit from your film budget.
Check QuickFilmBudget.com for a sample film budget!

Tax Credit - Israel

http://www.filmfund.org.il/page.aspx?section=141
Cost reduction incentive of 20% (17%, plus VAT of 15.5%) of eligible “production payments in Israel”. There are noo project or funding caps. The minimum local spend of NIS 8,000,000 (approximately US$2,000,000) To be eligible, you must be a company resident in Israel that is engaged in the production of films.

Israel also offers a Film Fund to pay for development and production. The selection of the films and the amount invested in each of the films, is based on the recommendations of the Fund’s executive director, the Fund’s head of productions and finance, the Fund’s professional consultants and on the approval of the Fund’s board of directors. The support of the Fund is given in the form of an investment with a recoupment and profit share policy which provides attractive incentives to the investors.
The Fund may invest up to 70% of the approved “below the line” budget. The level of production support varies between as low as $50, 000 to as high as $600,000.
Remember to exclude the tax credit from your film budget.
Check QuickFilmBudget.com for a sample film budget!

Tax Credit - Ireland

http://www.irishfilmboard.ie/financing_your_film/Section_481/5
Section 481
In 2008, the Irish government introduced new measures to strengthen the Irish tax incentive, Section 481 for film and television production. This has dramatically improved Ireland's competitive position as a location for International film & TV production.

The new improvements mean ceiling on qualifying expenditure for any one film is increased from €35 million to €50 million.
Qualifying expenditure includes all EU personnel and purchases of goods and services in the State.
Projects may derive a benefit of up to 28% of their eligible Irish expenditure.
The main benefits of Section 481 are:

Worth up to 28% of Irish budget
Is available to the production on first day of Principal Photography
Does not require bank discounting
Is available to both Film and Television productions
Value is determined at the outset
Is in place until 2012

Irish resident independent producers can offer valuable expertise in maximising the amount of Section 481 finance for a production, as well as facilitating the smooth operation of the production schedule.

Applications for the certification of film projects for Section 481 are made to the office of the Revenue Commissioners who are responsible for the administration of the scheme. The Department of Arts, Sport and Tourism have an input into the procedure in that they validate the cultural content of film projects submitted for certification.
Remember to exclude the tax credit from your film budget.
Check QuickFilmBudget.com for a sample film budget!

Tax Credit - Iceland

http://www.filminiceland.com/incentives/
Special legislation has been passed in Iceland which aims "to enhance domestic culture and promote the history and nature of Iceland" by temporarily supporting motion pictures and television programmes produced in Iceland. Reimbursements are offered for film and TV production costs incurred in Iceland. Producers can apply for reimbursements from the State Treasury of 20% of the costs incurred in the production of films and television programmes in Iceland. When more than 80% of the total production cost of a motion picture or television programme is incurred in Iceland, the reimbursement is calculated on the basis of the total production cost incurred within the European Economic Area. The reimbursement scheme does not cover production of commercials or music videos.

EU Film Funds

European content classification
Since Iceland is a member of the European Economic Area, films and television programmes made in Iceland receive European content status. This entitles Icelandic productions to be classified as European material when released in Europe, without affecting any quotas on the release of non-European content material there.

Eurimage
Through Iceland's membership of the European Economic Area, films and television programmes made in Iceland can receive grants for film production offered by the European Union and its member countries.
Remember to exclude the tax credit from your film budget.
Check QuickFilmBudget.com for a sample film budget!

Tax Credit - Hungary

http://english.mmka.hu/
1. WHAT IS IT?
Indirect state subsidy through a tax certificate issued by the National Film office (NFO). Non-recourse, non-repayable and non-recoupable cash rebate, based on the Hungarian eligible production expenditure provided by local corporate tax payers’ ‘sponsors’.
2. WHO IS ELIGIBLE TO PAY FOR IT?
Applicant must be a Hungarian company or a Hungarian branch of an EU company registered by the NFO.
Applicant must be the film’s producer, co-producer or production service provider who is responsible for and actively involved in the production of
the film throughout.
3. WHICH FILMS QUALIFY?
Feature films; animation; documentary; experimental; TV film; mini-series. Films with highly violent or pornographic content are excluded. Also excluded are TV sitcoms; reality shows; daily soaps. Films registered after 1 January 2008 need to pass a cultural test with a minimum of 16 points out of 32 in the following categories:
• Cultural content: 8 points.
• Cultural contributions/hubs/practitioners: 24 points.
4. WHAT IS IT WORTH?
20 cents of every Euro of eligible Hungarian and non-Hungarian spend, which is worth 25 cents of every Euro of eligible Hungarian spend.
Definition of eligible HU spend
• : Production expenditure as per the film’s registered budget/spent by applicant(s)/accounted separately in the books of the applicant(s)/paid to Hungarian tax-registered sub-contractors (both companies and individuals). Definition of non-HU spend: Same as above with the exception that it can be paid to any foreign (non-Hungarian) entities. It is capped at 25% of the eligible HU spend.
Excluded costs:
•
a) Costs of copyright and acquisition of underlying rights costs above 4% of the budget.
b) Producers’ fee above 4% of the budget.
c) Marketing and publicity costs above 5m HUF or 2% of the budget.
d) Travel costs without a Hungarian destination.
e) Costs of services performed by foreign tax-registered entities – including non-Hungarian cast and crew – above 25% of eligible HU spend (transferred services bought from foreign entities need to be deducted from eligible HU spend).
Third-country location shooting: any cost incurred abroad counts providing it fulfils the requirements for definition of eligible HU and non-HU spend.
5. HOW TO CLAIM IT?
The film needs to be registered at the NFO. Application for the registration needs to include script, budget, production schedule, crew list, co-production agreement or PSA agreement with the sponsor, ledger of the separate account from the book(s) of the applicant(s). To register the film 100% financing of the local split budget needs to be proved. Upon completion of the production or after having finished a certain part of the production an application for a tax certificate to be filed to the NFO. The application needs to include the ledgers and other related lists obtained from the books of the applicant(s) and the supporting documents (e.g. contracts, bank statements). After the NFO has concluded the audit of the submitted documentation, the final amount of eligible HU and non-HU spend plus the amount of the 20% rebate is quoted. The NFO issues the tax certificate with the equal amount of quoted rebate. Upon receiving the tax certificate the sponsor transfers the fund to the producers.
Remember to exclude the tax credit from your film budget.
Check QuickFilmBudget.com for a sample film budget!

Tax Credit - Germany

EntertainmentPartners.com
Type of Incentive: Cash (financial aid) grant
Benefit (if eligibility requirements are met): 20% of qualifying local spend (up to 80% of the total production costs)
Compensation and Project Caps/Funding Per Year: €4,000,000 per film (€10,000,000 if local spend ≥
35% of budget or if ≥ 2/3 of cultural characteristics awarded; €60,000,000 per year)
Project Criteria: Minimum budgets for feature films = €1,000,000, animated films = €3,000,000,
documentaries = €200,000; ≥ 25% of budget must be local spend or 20% if budgeted > €20,000,000; if
€15,000,000 local spend, no percentage test; cultural test
Eligible Entities: German production company or establishment
Sunset/Review: December 31, 2012
Remember to exclude the tax credit from your film budget.
Check QuickFilmBudget.com for a sample film budget!

Tax Credit - Georgia

http://www.variety.com/article/VR1118010648.html?categoryid=19&cs=1&ref=bd_int)
* The Culture Minister is preparing a tax incentive for local productions to provide for rebates of 25%, with a cap of $1
million.
Remember to exclude the tax credit from your film budget.
Check QuickFilmBudget.com for a sample film budget!

Tax Credit - France

http://www.filmfrance.net/v2/gb/home.cfm
1. What is it?
In December 2008, the French Parliament enacted a law creating a new credit for foreign productions shot in France.

The law is designed to promote actual film production as well as post-production services of movies whose “dramatic content” has links with the “culture, heritage or territory of France”, to quote the text of the law.
The rebate, worth 20% of all eligible costs, is capped at Euros4 million (USD5,3 million *). Eligible costs include authors’ rights (through French contracts), crewmembers’ salaries, actors’ salaries (up to the minimum rate of the collective bargaining agreement), technical costs (rentals and purchases), locations fees, transportation, food, and all fringes.

In 2009 only, films that have started shooting before the procedure is official, and that happen to be eligible afterwards, will be able to get the rebate for all expenses made since January 1st 2009.


* Rate : €1 = USD1.32838 (04/09/09)

2. What are eligible movies ?
In order to get a rebate on expenditures, theatrical movies, TV movies, and series will have to pass a test. The draft test is currently being reviewed by the European Commission for validation before its implementation in France. Therefore, all the details are not yet final. It would assess the content, the creative contributors, and the technical infrastructure of the movie. A special test has been designed for animated features so as to take into account the specificities of such films.

Other main conditions set out by the law to get the rebate are to shoot at least five days in France (except of course for animation works) AND to spend at least 1 million E uros in France on eligible costs.

3. How will it work?
Once the foreign producer has signed a deal with his French line producer, the latter will be able to submit an application with the needed documents to the CNC *. He will get a return receipt. No expenditures before the reception date of the application form will be eligible (except for films shot in 2009, see above).

Any company incorporated in France can be the line producing company applying for the rebate. It can be a subsidiary of the foreign producing company itself, even specially created for this purpose. However, given the existing French tax and corporate law, this option might not be the most convenient one.
Then, a committee of the CNC, with the assistance of Film France, will determine the eligibility of the proposed foreign production. If approved, the CNC will issue an official letter of agreement . This agreement will be delivered on a provisional basis and will have to be confirmed after the completion of works. The CNC Committee will gather on a regular basis. If accepted, the French line producer will receive an official letter of agreement.

The French line producer will then be awarded the rebate by the French Tax administration , as a credit against its corporate tax, at the end of the fiscal year(s) of the shoot. If its corporate tax is less than the amount of the rebate, the French line producer’s company will get a cash refund from the tax office. Since the law aims at attracting foreign productions to France , the contract between the French line producing company and the foreign producer’s company is to be a part of the application when filing with the CNC.
Remember to exclude the tax credit from your film budget.
Check QuickFilmBudget.com for a sample film budget.

Tax Credit - Fiji

http://www.fijiaudiovisual.com/pages.cfm/incentives/
The Film Tax Rebate is available for fully-funded productions whereby a production
entity is eligible for a 35% tax rebate or cash subsidy (calculated on its qualifying
production expenditure in Fiji) when it lodges its income tax return at the end of the
production.
Remember to exclude the tax credit from your film budget.
Check QuickFilmBudget.com for a sample film budget!