The Hungarian tax and film industry legislation promotes and encourages the Hungarian film industry by providing several advantages:
- It makes available an up to 20% expenditure based, post-production rebate, while allows for cost-effective co-operation between foreign producers and Hungarian companies;
- The higher the direct production costs incurred in Hungary, the higher the cost reduction available;
- The producer may significantly reduce its overall production costs by receiving financial support from an independent Hungarian taxpayer, up to 20% of the direct production costs incurred in Hungary;
- The taxpayer will be entitled to claim a reduction of payable tax from the tax due for the current tax year and the following three tax years;
- Hungary has no withholding tax on royalty, interest or dividends;
- Example: financial positions of the producer and the Hungarian taxpayer.
PwC can help you:
- Match our film projects POOL with our POOL of Hungarian corporate taxpayers and assist taxpayers and producers in general to access benefits under the Film Incentive Regime;
- Assist with contracts to be concluded between producers and Hungarian taxpayers;
- Assist with Finance Plans, Budgets, Cashflow Statements, Sales Estimation, Recoupment Plans and documentation related to production and accessing the Hungarian Film Incentive Regime;
- Give general tax planning advice to minimize tax on film distribution/financing;
- Organise Legal Services related to production including establishment of Special Purpose Production entities;
- Deal with production milestone and provide general audit services.
