logo Premium Services For Selected Clients
PLEASE SUBSCRIBE TO OUR NEWSLETTER
* indicates required
/ ( mm / dd )
Follow & share
Search:
FSMO | Incentives for a Natural Film Studio
21875
post-template-default,single,single-post,postid-21875,single-format-standard,edgt-core-1.0.1,tribe-no-js,ajax_fade,page_not_loaded,,hudson-ver-2.2, vertical_menu_with_scroll,smooth_scroll,side_menu_slide_from_right,blog_installed,wpb-js-composer js-comp-ver-5.4.5,vc_responsive

Incentives for a Natural Film Studio

Aug 14 2019

Incentives for a Natural Film Studio

Without any doubt, Cyprus is an attractive destination for foreign investments due to the position of the Island, the attractive tax benefits and also the available incentives for various types of foreign investments.

 

The Cyprus Government is encouraging foreign investors to invest in Cyprus Film sector and have announced recently various incentives. Below we have set valuable information which can be very helpful to give you a briefing about the incentives.

 

Cash rebate: Rebate of up to 25%-35% on eligible expenditures incurred in Cyprus. The amount granted will depend on the score of the production at the cultural test. The rebate will be given once filming is completed, on receipt of the audit report and its review by the committee.

 

Tax Credit: The maximum aid, as a reduction of applicable corporate tax for the Applicant, shall represent 35% of the eligible expenditure made in the Republic of Cyprus. The sum of the tax credit against the taxable income shall not exceed 50% of the Applicants’ taxable income for the tax year within which the production is made. The tax credit, to the extent that it is not granted due to the above percentage restriction, shall be carried forward and be given within the next five years, subject to the above percentage restriction.

 

Tax Allowance for investment in infrastructure and equipment: Any small and medium-sized enterprise subject to a tax liability in Cyprus investing in film production infrastructure and technological equipment shall be entitled to deduct the amount of its investment from its taxable income. The aid may not exceed 20% of the qualifying production expenditures in the case of small enterprises and 10% of the qualifying production expenditures in the case of medium-sized enterprises. Investment in the case of equipment should remain in the territory of Cyprus for a period of at least 5 years.

 

Return of VAT on expenditure: For qualifying production expenditures incurred in Cyprus by natural or legal persons from third countries and which are related to the implementation of productions, the company is entitled to a refund of VAT. VAT returns arise within 6 months with respect to the legal person which carries out the foreign filming in Cyprus from the end of the last deadline for submitting the VAT declaration for the specific VAT period during which the expense occurred or from the date on which the application for VAT return is filed.

 

Qualifying production categories

• Feature Films – Long Films

• Television film or Television series or mini series

• Digital or analogue Animation

• Creative documentaries

• Transmedia and Crossmedia productions

• Reality programmes which directly or indirectly promote the Republic of Cyprus and its culture

 

Interested in filming in Cyprus?

In order to benefit from the scheme, you will need to complete the application process. In order to be eligible, you will need to have among others:

 

  • A registered company in Cyprus, or another EU territory
  • A financial plan of the project
  • Proof of funds
  • The scenario of the project
  • CV’s of the casting, director, producer etc.

 

FSMO team will be glad to assist you with the applications, procedure and further guidance.

This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. We believe that the information in this publication to be correct at the time of going to press, but we cannot accept any responsibility for any loss occasioned to any person as a result of any action or refraining from action as a result of any item herein. FSMO does not provide advice concerning the choice of investments for investors.
2019 FSMO Corporate Services Ltd. All rights reserved. 
Share Post