Written by Shona Smith on Nov 6, 2019. Posted in Incentive News

Ukraine launch new 25 – 30% filming rebate

The new incentive will be available to foreign producers, and an additional 5% rebate will be available if the project satisfies addition criteria, such as being based on Ukrainian literary IP.

Victoria Yarmoshchuk, director of Media Resources Management and adviser to the Minister of Culture, Youth and Sports of Ukraine on film industry issues says “Ukraine hopes that incentive will bring to our market not only money of the international productions and paybacks to the economy in other forms (hotels, entertainment, transport, etc.), but also experience of international shooting crews and will raise awareness about Ukraine on the international market”.

Ukraine is an increasingly attractive destination for European projects. A range of Commercial projects, and a growing number of TV series, including Chernobyl and Legacy of Lies (pictured) have shot in the country recently.

The incentive puts the Ukrainian offer on par with neighbouring countries including Poland, which introduced a 30% incentive in early 2019, Slovakia that their incentive to 33% in 2020 and Romania’s 35 - 45% incentive.

Yarmoshchuck notes that a “Ukrainian rebate system was initiated in 2015 by Ukrainian production industry in close cooperation with state authorities. In the initial project it was planned to introduce 25% of cash rebates for producers. Finally, the law was voted by the Parliament and signed by the President in 2017 with reduced volume of rebates, equaling 16.6% . But from that time the law hadn't yet come into force and the rebate system was not actually implemented. In September 2019 new Ukrainian Parliament voted for the new amendments to the Law "On State Support of Film Industry" with cash rebates for foreign producers equaling 25% (+5%)”. 

Incoming producers should find local VAT-payer partner and then apply to Ukrainian State Film Agency for rebates request.

Foreign producers can receive 25% rebate of eligible expenses if the following cumulative criteria are met:

- expenses are fully or partially incurred in favour of a company registered in Ukraine;

- minimum production spent in Ukraine is near USD320,000 for feature film and animation, near $90,000 for TV-movie and animation less than 74 minutes, near USD56,000 for documentary, near USD270,000 for TV series and near USD154,000 for advertising and music videos;

- foreign producer has entered into a production agreement for all or part of the film with Ukrainian production company registered as VAT payer.

The 5% uplift will apply if projects satisfy additional criteria, such as being based on Ukrainian literary IP. 

Ukrainian Motion Picture Association (UMPA) will be attending FOCUS 2019. Click here to register for a free delegate badge to meet with the UMPA at Stand S72.

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