Ukraine Introduces Tax Rebates

Yesterday, September 22nd, Ukrainian parliament has finally adopted the long-awaited-for and fiercely discussed legislation on State Support of the Film Industry.

There about ten major changes in the playground most important of which is introduction of the 25% cash rebate system for all the service production projects including theatrical movies, TV series, commercials, music videos etc. The other important things are following:

  1. State support for film could be granted to all legal bodies regardless of ownership type – state, private, corporate, etc.
  2. State support will be conducted through Film Fund under the management of State Film Agency. The funding decisions to be made by a Film Council. The level of financing is set to 0.2% of Ukraine’s state budget.
  3. Features and animation film could get up to 80% of the budget from state support
  4. TV Series could get up to 50% of the budget from state support
  5. Documentaries, educational and children programs could be 100% funded by state
  6. Foreign production companies could get up to 25% of qualified production expenses and up to 10% in royalties for the projects shot in Ukraine as a service or in a co-production with Ukrainian company
  7. State finance could only be granted to the national film projects passing the cultural test
  8. All the exhibitors and broadcasters in Ukraine should air at least 15% of the national content before January 1, 2022 and at least 30% after the date
  9. The ownership of the 100%-funded programs belongs to the state. Other projects receiving the state support should repay part of their revenues to the state
  10. Advertising campaigns for national films are considered of social importance and could be placed free of charge in the media

The link to the text of the legislation in Ukrainian: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=57258

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