Ukrainian Republic

Ukraine is launching a cash rebate for foreign film productions starting 2020. Feature films, documentaries and animated films can apply, as well as TV feature films or animated series, commercials and music videos. Under the scheme foreign productions will be able to get back up to 25% of the qualified costs for producing films in the Ukraine, and an additional 5% if they pass the cultural test on Ukrainian subjects.

The 25%+5% Cash Rebate formula starting January, 2020 is defined in a newly adopted law where 25% means general rebate while +5% refers to the production passing Cultural Test: https://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=66292

The procedure of application and assignation of tax rebate funds is written out in the law On State Support of Cinematography (Article 11). The outline of procedure looks like this:

1) A business entity seeking rebate should apply with a letter to State Film Agency before the production is complete to obtain a preliminary evaluation of the project
2) The following papers should be attached:
i)Shooting script
ii) Production scheduled
iii) Budget breakdown
iv) State Register records & copy of Statute of Ukrainian counterpart company
v) Crew & Cast lists
vi) A guarantee letter of compliance to Article 12 of this law
vii) A processing fee receipt
The minimum qualified spend is calculated based on Cost of Living index on month-to-month basis and currently approximates to:
Film Type UAE USD
Feature film >=74 min 8108000 $324320
TV or animation >=74 min 2270240 $90809.6
Documentary >=52 min 1418900 $56756
Commercial/Music Video >=20sec 6810720 $272428.8
C/MV with 10% reinvestment 3891840 155673.6
The terms of application processing are outlined as following:
i) 2 days for State Film Agency to submit the application to the Council of State Cinema Support
ii) 30 days for the Council to return an eligibility & Cultural Test record
iii) 1 year since completion of production for eligible business entity to claim the rebate from Film State Agency.
iv) 30 days for the Council to evaluate the final rebate claim & 40 days for State Film Agency to confirm the rebate
v) 10 days for the State Film Agency to implement payout upon the decision
3) To claim the rebate the eligible business entity should provide:
i) Production budget
ii) Agreement with Ukrainian counterpart
iii) Certificates of completion of related works with specification of qualified expenditures along with primary accounting papers
iv) A guarantee letter stating no changes were made in script / crew list / other inputs which were the base for eligibility / culture test
v) General production report
vi) Audit of qualified expenditures
4) The qualified expenses for state rebate are outlined as following:
i) salaries & other crew and cast payouts
ii) purchase of goods & services
iii)rent of properties & facilities.
iv) VFX/CGI works are exempt of Cultural Test if minimum 50% of the staff involved in its production on territory of Ukraine are Ukrainian citizens
The unqualified expenses are outlined as following:
i) Wear and tear expenses
ii) Negotiation/representation costs
iii) Non-production operational costs
iv) Distribution costs
v) Travel costs outside Ukraine
vi) Salaries and other crew / cast payouts which are not subject to taxes in Ukraine