Borodianskyi: If Passed, Cash Rebates Law to Benefit Ukrainian Filmmaking, Economy
On 20 September 2019, the Verkhovna Rada of Ukraine passed in the second reading Draft Law No. 1058 “On Amending the Law of Ukraine on the State Support of Cinematography in Ukraine Regarding Cash Rebates”.
The law provides for increasing cash rebates, i.e. the refund of expenditures related to filmmaking in Ukraine, from 16.6% to 25% (plus 5% if the final product incorporates elements of Ukrainian culture, e.g. is based on a Ukrainian piece of writing). The expenditures will be compensated for foreign filmmakers only, provided that their beneficiaries or management do not include Ukrainian residents.
“The adoption of this law will benefit the Ukrainian film industry and the economy as a whole,” says Volodymyr Borodianskyi, Minister of Culture, Youth and Sport of Ukraine.
The law is designed to encourage the growth of the national market and attract additional financing, which will allow the filmmaking industry to function independently of the state support.
An important point is that cash rebates will be given via Ukrainian companies, so that non-residents will have to partner with our filmmakers, which in turn will be able to study foreign experience, master new technologies, and work with acclaimed actors and directors.
The introduction of cash rebates is meant to be an important part of Ukraine’s promotion in the world—namely its cultural heritage, literature, locations, etc. as they are featured in products made by internationally renowned content creators.
Engaging foreign filmmakers in Ukraine will also benefit internal tourism, the entertainment industry, transport, etc. To take an example, the success of “Game of Thrones” attracts thousands of tourists to Ireland and Croatia, where the TV series was set.
The amendments to the Budget Code necessary for the law to swing into effect were adopted by the Verkhovna Rada on 12 September.
To Articles List