The Ukrainian Government Exempted Cinematography From Taxation

On March 19, 2009 the Ukrainian Government approved a bill №2595 About making alterations in the law of Ukraine On a cinematography (in relation to state supporting of national film production).

So, the bill assumes that the subjects of cinematography are exempted from ground rent. Besides, according to the law-draft, cinematography subjects are allowed to include into the film cost the film production insurance charge and film production financial guarantees as of 10% from film budget.

Also the law-draft implies exemption from VAT tax applied to sales by cinematography subject and to turn-over costs for using film products. Production services, duplication and rental are also exempt from VAT tax.

Cinematography subjects are also exempt from taxes in terms of film product sales or rental licensing sales in part where state budget is involved.

At the same time, original film footage, film material and equipment being imported to or exported from Ukraine are exempt from customs taxes and duties.

The Government accented that this bill was developed with the purpose to support of production of domestic films.