ABOUT CASH REBATE
“Film in Georgia” is a newly launched film industry incentive program offering a 20% cash rebate on qualified expenses incurred in Georgia. The program aims to support the development of Georgia’s film industry.
An additional rebate of up to 5% is available if a production promotes Georgia as a destination the program’s “Cultural Test.”
CASH REBATE 20%
“Film in Georgia” is the film industry incentive scheme launched in 2016 offering production companies 20% cash rebate of qualified expenses incurred in Georgia.
Eligibility Criteria:
· International and local productions must be registered as legal entities in Georgia.
· Projects must lead to the production of a feature film, TV film, TV series or mini-series (pilot episodes are eligible), animation, documentary film, commercial, reality show, or music video
· At least 50% of the total production budget should be in place at the time of application.
· Expenses must be directly related to the filmmaking process to qualify.
· Continuous projects as well as projects requesting a higher qualified expenses than 5 000 000 GEL require special approval of the government of Georgia
· Production in Georgia must be completed within 12 months after acceptance to the rebate program
Cash rebate scheme with eligible products and minimum requirement:
| Pducts Eligible for Cash Rebate and Minimum Requirements | Min. Local Expenditures | Audience Coverage Requirements (any type of agreement) |
|---|---|---|
| Feature Film | GEL 500,000 / ~USD 160,000 | N/A |
| Internet/TV Film | ||
| Drama/Series, mini series (including pilots) | In at least 3countries outside Georgia | |
| Documentary | GEL 300,000 / ~ USD 100,000 | N/A |
| Music Video | In at least 1 country outside Georgia | |
| Commercials | In at least 1 country outside Georgia | |
| Animated Film | GEL 100,000 | N/A |
QUALIFIED EXPENSES
| Name of Qualified Expense | Limit of Co-financing % to total qualified expenses budget |
|---|---|
| Rent of audio-visual equipment in Georgia | |
| Rent of wardrobe/costumes | 15% |
| Service of hair and stage make-up studios | |
| Rent of requisites | |
| Rent of generator | |
| Rent of grip equipment (including its accessories) | 15% |
| Rent of illumination equipment (including its accessories) | 15% |
| Rent of pavilions, studios, rehearsal rooms, manufactories (property-room, joinery), workshops, sports storage spaces, stage, halls | |
| Rent of office space, office furniture and equipment | |
| Rent of air and water transport in Georgia | 15% |
| Rent, training, feeding, transportation of animals | |
| Rent of water tanks and mobile toilets | |
| Rent of special personnel and special technics subjected to state and private sector | |
| Rent of land transport, vehicles and all special transport for film-making | |
| Security and urgent medical assistance services | |
| Food and catering services on the territory of Georgia if it is in direct relation to the final project | 15% |
| Professional services rendered in Georgia – insurance, banking, accounting and legal services. Also, if necessary, the services provided by the interdependent person and in other cases provided by the legislation of Georgia, the service rendered by the expert to determine of the market price of | |
| Special effect services – specialists and equipment | |
| Special services – scuba diving, skydiving, rent of hang-glider and hire of instructor, mountainous services and all special services related to film-making | |
| Rent of filming places and cost of filming right – amount paid to owner (resident physical person of legal entity) of filming places related to audio-visual production on the territory of Georgia | |
| Decorations construction and /or arrangement services | |
| Travel expenses on the territory of Georgia of administrative personal of the program beneficiary – in accordance with the legislation of Georgia | 1% |
| Accommodation expenses in Georgia – hotel expenses for crew | 15% |
| Expenses of the personal, which includes – wages of personal working on full/half term, remuneration of contractor manpower, who must be the resident of Georgia, paying taxes to Georgian budget, hired under the legislation of Georgia and on the territory of Georgia. | 60% |
| Remuneration to be given to non-resident physical persons (the director, the actor, the main operator, production designer / chief designer, costume designer, the editor) by the beneficiary of the program | 15% |
| Travel costs (only in Georgia) | 5% |
| Fuel costs (in accordance with the rule established by the order N230 of April 18, 2011 of the Ministry of Finance of Georgia) | 5% |
| Utility bills | 1.5% |
| Telecommunication expenses – for telephone, cell phone, internet, fax bills in Georgia; Walkie-talkie rent | 2% |
| Image editing | |
| Animation | |
| Visual effects (VFX) services | |
| Colour correction | |
| Music recording | |
| Voice recording studio rent | |
| Image rendering | |
| Rent of voice recording studios (voice recording for films) | |
| Translation | |
| Subtitling | |
| Laboratory expenditure borne in Georgia | |
| Creation of & film related packages to distribution and sales companies (deliverables) |
CASH REBATE +5%
An additional 2-5% rebate is available if projects include elements designed to promote Georgia as a destination. To qualify, projects must meet the program’s “Cultural Test”:
1% – The production is completed and released theatrically or on major television network, and a “Making-of” video is produced that showcases the Georgian shoot.
1% – The production employs Georgian citizens in at least one of the following categories:
1. Lead actress or actor (first three positions in credits), or Director (first two positions in credits)
2. Screenwriter (first two positions in credits) or Composer (first two positions in credits)
3. Two supporting actresses or actors (first ten positions in credits)
4. At least three Heads of Department (DP, first position in credits), Producer (first three positions in credits), Production Designer (first position in credits), Costume Designer (first position in credits), Line Producer (first position in credits), Production Manager or Unit Production Manager (first position in credits, only if the picture does not have a line producer)
1% – Use of one of the following elements in the production:
1. Depiction of Georgia as a location (identified via on- screen title or other indication)
2. Story based on a Georgian work of literature or historical event
3. Depiction of national landmarks commonly associated with Georgia such as:
- UNESCO cultural heritage sites (and candidate sites)
- Landmarks from the approved list
- The Georgian flag (visible on-screen for at least two seconds)
1% – Spending at least 50,000 GEL on post-production services in Georgia
1% – Distribution of final product in at least two EU member countries, the US, Canada, or India; or participation in the main competition of an FIAPF-accredited film festival, the Sundance Film Festival, or an AMPAS or BAFTA nomination.
APPLICATION PROCESS
In order to become cash rebate incentive beneficiary the following steps should be completed:
- Submission of the online application form. Application can be submitted using the following link: http://e-services.economy.ge/filmcommission/registration (please note, we only consider applications submitted via the link)
- Government is obliged to respond within 30 days upon application submission
- If an application is successful contract (Legislative documents as well as regulations can be found at the download center) will be signed between an applicant (from now on referred as “beneficiary”) and Enterprise Georgia
- After signing the contract, beneficiary has one year to implement a project and provide financial statement audited by an independent, private auditing company. Expenses are rebated only after Enterprise Georgia receives audited financial statement (please note, we only consider financial statements submitted via http://e-services.economy.ge/filmcommission/registration)
- During one-year period beneficiary is free to implement the activities according to the project submitted during the application process and plan the shooting periods. Beneficiary can make necessary changes in the project implementation plan; however, audited financial statement has to be submitted no later than one year after signing the contract
- Government rebates 20% of the qualified expenses within one year after the submission of the relevant financial statement
- After receiving the 20% cash rebate, the beneficiary has one year to apply for the additional 2-5% rebate
- After receiving the application, the Government has 90 days to decide on and provide 2-5% rebate
Source: filmingeorgia.ge