The Film Industry Is Granted a New Incentive.
Since June 2018, the film industry has introduced a new rebate, in addition to the one granted through the Romanian Film Center (RFC).
Governed by new rules, different from those of RFC, this rebate is granted by the National Strategy and Prognosis Commission, through the Romanian Film Commission and consists in the reimbursement of a percentage of up to 45% of the eligible film production expenses, expenses incurred on the Romanian territory.
In this respect, the government will allocate an annual budget of approximately Eur 50 million, until December 31, 2020, which will mean a total budget of approximately Eur 150 million until December 31, 2020.
The basic percentage is 35% of the total eligible expenses, to which an additional percentage of 10% is added (in total 45%) if the relevant film production promotes the touristic potential of a certain geographical area, of a city or of Romania. Both the basic percentage and the additional one are granted if a percentage between minimum 20% and maximum 80% from the total budget is spent on the Romanian territory, the maximum limit of the expenses on the Romanian territory being of 160% from the rebate granted for the production.
The minimum mandatory value of the eligible expenses is Eur 100,000 per project, and the maximum amount is Eur 10 million/per project.
This incentive is granted under the form of an amount that is reimbursed, after the project is completed and the related budget is spent, on an annual and multi-annual basis, and after carrying out an audit certifying the amount of the eligible expenses incurred. The actual payment will be made within a term of 120 days from the date of approval of the request for reimbursement, previously confirmed by the auditor.
From among the projects meeting the eligibility criteria, the selection is made based on the «First come, first served» principle.
The entities applying for this incentive may be both foreign and Romanian entities acting in the capacity of producer, co-producer or provider of services for a foreign production company. The relevant producers must develop the production in cooperation with a Romanian producer or Romanian services provider.
There are several requirements that must be met both by the project and by the applicant in order to be granted the rebate. There is also a list of categories of eligible expenses.
One of these requirements is that the project must be a “cultural project.” The criteria for qualifying a project as “cultural project” were established by the National Strategy and Prognosis Commission on July 4, 2018 and, at the same time, each project will be subject to an eligibility test according to which, in order to be granted the maximum of 35% it is necessary to obtain a minimum score of 18 points.
This incentive is granted for the film production, irrespective of the environment in which these films are exploited (cinema, TV, video supports, on-line or any other type of support) such as short and medium format films, TV series, animation or documentaries.
This rebate is intended to be an incentive and due to this, the selected projects are those projects for which the financing application was filed before the actual start of the project related activities.