The Ministry of Economy of the Government of Serbia has announced a Call for Applications on April 15, 2016 for film and TV incentives that is open year round. The program provides a 25% cash rebate on qualified Serbian spend for feature films, TV series, animation films and visual effects, TV commercials and documentaries.
The applications should be submitted to the Film Center Serbia.
Relevant documents with details of the program, what is and is not considered qualified Serbian spend and the procedure are attached below. These include the Decree on the Incentive Program, the Rulebook (Guidelines) and the public Call for Applications.
Should you need any help with understanding the regulations and preparing your application, we will be happy to assist you. Please contact us at email@example.com.
25% of Qualifying Serbian Spend
Open all year.
Applicants must be a legal entity registered in Serbia and which is responsible for paying all relevant Serbian taxes for the production.
Feature films, TV films and TV series: 300,000.00 EUR, with TV series: 100,000.00 EUR per episode
Animated film, audio and/or visual postproduction of an audiovisual work: 150,000.00 EUR;
Special-purpose film/TV Commercials: 100,000.00 EUR;
Documentary films: 50,000.00 EUR.
-Feature film, TV film, feature-length documentary film and animated film intended for broadcasting, that last at least 70 minutes
- TV series containing at least three episodes not shorter than 40 minutes;
-Documentary programmes not shorter that 40 minutes
-Post-production or VFX for any of the abovementioned formats
The following are considered Qualifying Expenditure towards the incentive:
-Costs pertaining to the production of an audiovisual work that have occurred and that have been disbursed to legal or natural entities in the territory of the Republic of Serbia. These include purchased goods and provided services, use of locations, crew payments and royalties to individuals who are residents of the Republic of Serbia or to foreigners who are legally residing for at least a year in the territory of the Republic of Serbia, in accordance with the regulations of the Republic of Serbia;
-Incurred costs pertaining to the use of goods, ie. leasing of movables and immovables may be recognised only if the goods, and/or movables and immovables, are the property of legal or natural entities, in the territory of the Republic of Serbia.
The following costs do not qualify for the incentive:
- Marketing costs, costs related to real estate purchase, distribution costs, costs of VAT.
According to Committee for the Film and TV Incentives, only costs pertaining to the production of an audiovisual work are considered as Qualifying Expenditure towards the incentive. The Rulebook and Decree do not treat costs of making an audit report as Qualifying or Non-qualifying Expenditure, because they haven`t been used for production of an audiovisual work, and as such, they are borne by the applicants.
Types and content of Qualifying and Non-qualifying Expenditure are prescribed in more detail in the Guidelines for the incentive programme and Eligible costs specification, that can be downloaded bellow.
There is no cap per project. Every year the Serbian government will allocate funds for the incentive programme. The budget for 2019 is 900 million dinars (around EUR 7,5 million or $8,6 million).
The applicant applies for the incentive programme to the government organization Film Center Serbia, providing an estimated budget, a production schedule together with a completed application form and other required documents. The Commission will review the application within 7 days. If approved, the Ministry of Economy will sign a contract with the applicant. Upon completion of the production, the applicant needs to conduct an independent audit and submit a Request for Payment within 45 days from the completion of production. The Commission will pay the 20% rebate within 60 days of the Commission’s meeting to review the completed production reports and financial information.
Serbia has a VAT of 20% on all goods and services except hotels and other accommodation where VAT is 10%. VAT is NOT considered qualified Serbian spend.