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Korda Studios
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INCREASE OF THE FILM PRODUCTION TAX REBATE TO 25% OF THE ELIGIBLE HUNGARIAN COSTS

In its decision dated 24 June 2014, the European Commission approved the request of the Hungarian Authorities and stated that it has no objection against increasing the level of the indirect support (provided in the form of tax rebate) of the film productions in Hungary from 20% to 25% of the eligible costs. 

According to the decision of the Commission, the potential increase of the level of indirect support is consistent with the New Cinema Communication of the European Commission and it should not affect the application of the Hungarian film support and tax rebate system approved and extended by 6 years, until 31 December 2019 by the European Commission.
The related amendment of the regulations of both the Act on Motion Picture and Corporate Income Tax and Dividend Tax was submitted to the Hungarian Parliament in the beginning of its fall session. On 24 September 2014, the Hungarian Parliament passed the amending law increasing the ratio of the indirect film support from 20% to 25% of the eligible costs. Except for the increased rate of the available rebate, other main regulations in connection with the indirect support, for example provisions on qualifying production spend with respect to film producers have not been changed. 

The modification takes effect retroactively from the day after the decision of the European Commission (i.e., from 24 June 2014 on), in order to avoid interruption in the start of the production of those films that are already in the preparation phase. The higher level of indirect support is applicable in the case of those film productions that are registered at the Hungarian National Film Office after 24 June 2014; i.e., productions registered before or on 24 June 2014 can only apply for the 20% indirect support.

Although the annual spending of the Fund itself is not capped, The Hungarian Parliament has also allowed the Hungarian National Film Fund to collect sponsorship amounts from corporate sponsors up to HUF 12 billion (approx. USD 49 million) in 2015 compared to the limit of HUF 7 billion (approx. USD 32 million) applicable in 2014.

The increase of the level of indirect support of film productions will significantly improve the regional competitiveness of Hungary in the field of film industry.

www.kordastudio.hu

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Hungary ups film tax rebate to attract more foreign productions!

Hungary is set to increase its tax rebate by 5% later this year as the country aims to increase the amount of foreign film productions making use of the nation as a film location.

Under the new rules, international producers shooting in Hungary will be able to claim up to 30% of local spend.

In June the European Commission approved the country’s new rebate for productions shooting in the country to 25% - a 5% increase to its previous arrangement.

However, under an additional rule that allows filmmakers to also shoot across Hungary’s borders without losing any of their possible tax benefits, producers can also apply for the rebate to be applied to a maximum of 20% of their overall spend, which would then amount to a 30% rebate overall.

With the new scheme Hungary is on a par with countries such as the Netherlands, whose new cash incentive of 30% came into force in May, and the UK, which has a popular 25% tax incentive in place.

One production that is set to come to Hungary (Budapest) later this year is the feature film The Zookeeper's Wife, starring Jessica Chastain. Niki Caro’s film is an adaptation of the World War II novel by Diane Ackerman.

Other productions to have filmed in Hungary over the past few years include World War Z, 47 Ronin, The Rite and The Boy In The Striped Pyjamas, while TV productions to have spent time there include The Borgias, Pillars Of The Earth and Going Postal.

Check out our new website at: www.kordastudio.hu

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New York Brooklyn backlot set

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