A long-awaited mechanism for compensation of TV and film production costs spent in Ukraine is to be implemented beginning 2020.
A law on state aid in the cinematographic industry was adopted in 2017, providing numerous incentives and state subsidies for producers, including a cash rebate. The absence of a procedure for distributing the funds among producers, however, resulted in the cash rebate not being implemented and no money allocated.
It was recently announced that detailed regulation of cash rebate is to be elaborated by authorities soon and starting from 2020 such option will become available to film and television producers.
Generally, cash rebate is an incentive available directly to film and television producers are eligible for a cash rebate amounting to between 4.5% and 16.6% of eligible expenses (i.e. direct expenses for a production, such as employee salaries) depending on the type of expenses. There are two types of cash rebate in Ukraine: one for production expenses and the other for fees to actors and film crews who are non-residents and operate or live abroad, but can be taxed in Ukraine for specific productions.
If you have further questions on the cash-rebate mechanism for film and television production in Ukraine or would like more information on its potential benefits, contact our local CMS expert Olga Belyakova