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Romania considers tax incentives to attract foreign film production

Romania considers tax incentives to attract foreign film production
Scene from Graduation (2016, dir. Cristian Mungiu)

3 June 2016

The Romanian government is looking into the possibility of introducing tax incentives to attract foreign producers to film in the country.

According to the president of the Transilvania International Film Festival, Tudor Giurgiu, tax incentives form part of draft proposals for amendments to the country’s cinema law, submitted to the Ministry of Culture and other ministries as part of a broader consultation process “to create a more healthy climate for the film industry in Romania”.

The amendments also aim to bolster the national film fund (CNC), in order that it be able to play a more crucial role in the domestic film industry, as well as identify additional sources of funding within production, distribution and exhibition and make the decision-making process more transparent.

“If a film records a profit, it will return a percentage to the film fund,” said Alex Traila, a member of the CNC board, of the movement from the current credit system towards one based on grants.

Mr Traila stated there is “strong interest at government level” in promoting the creative industries, with the Culture, Finance and Economy Ministries coordinating a working group of representatives from the film industry to discuss potential new initiatives. He added that the working group has yet to decide whether Romania will forge ahead with a tax incentive, tax shelter or cash rebate model, and will take time to analyse incentive schemes in operation elsewhere in Europe.

Romanian cinema has enjoyed success in recent years, with Romanian filmmaker Cristian Mungiu winning the award for Best Director at this year’s Cannes Film Festival for his film Graduation (Bacalaureat), sharing the honour with French director Olivier Assayas,

Source: Screen Daily