CZECH FILM INCENTIVES

20 % rebate on production costs

For what?

  • Feature, TV, animation and documentary films (runtime of at least 70 minutes)
  • Episodic TV (runtime of at least 40 minutes per episode)

How much?

  • 20% rebate on qualifying Czech spend and 10% on qualifying international spend (labour costs related to non-resident cast and crew who do not pay income tax in the Czech Republic but who do pay withholding tax in this country)
  • Eligible spend capped at 80% of the total budget• In more detail, the grant comprises: 20% of payments to individuals paying income tax in the Czech Republic (wherever production takes place), plus 20% of payments to companies paying income tax in the Czech Republic (even if used abroad), plus 10% of payments to individuals who do not pay Czech income tax but who do pay Czech withholding tax (for the part of production taking place in the Czech Republic).

How to qualify?

  • Pass a Cultural Test
  • Minimum spend in the Czech Republic of:
    - CZK 15m (approx USD 790,000, EUR 586,000) for a feature or TV film;
    - CZK 3m (approx USD 160,000, EUR 117,000) for a theatrical documentary;
    - CZK 10m (approx USD 530,000, EUR 391,000) for each TV episode.
  • By the time the award is paid, the Applicant must be registered to pay income tax in the Czech Republic with a place of business in the Czech Republic. An international producer can meet this requirement by co-producing with a Czech entity (which then becomes the Applicant), by meeting this requirement itself, or by setting up a subsidiary that meets this requirement.

Timing

A call for project registration applications is made at least once a year (usually at the beginning of the year) and applicants have one month to apply. Any applications received after the one month period will be considered in the next call (if a second call is made).

How to apply?

There is a three-part application process to the State Cinematography Fund.

  1. The first stage focuses principally on whether the Project satisfies the Cultural Test (and includes a refundable administrative fee of CZK 30,000). The project needs to pass the Cultural Test by scoring at least 4 points among the cultural criteria and 23 points overall out of a possible total of 46; a response will be issued within 30 days of submission of the completed application.
  2. The second stage of the application provides financial information about the Project. A response will be issued giving the approved amount of the grant, based on the financial information provided, within 30 days of submission of the completed application.
  3. The Applicant to whom a project listing certificate has been delivered is obliged to spend at least 70% of the minimum amount of eligible costs within 12 months. To prove before the Fund that the Applicant has fulfilled this obligation, the Applicant shall submit an auditor’s report on the audit of the costs.
  4. An application for film incentive must be submitted after production is completed and eligible costs are audited no later than three years after receiving the project record certificate.
  5. The final application requires audited statements demonstrating that the amount of total eligible costs that have been incurred is as indicated on the second stage of the application. A response will be issued within 30 days, and within 14 days afterwards, funds will be paid into the applicant’s bank account.

How much is available?

  • There is no cap on the amount of grant per project.
  • The Programme had in excess of CZK 500m (approx USD 26m, EUR 19.5m) in 2013.
  • Public support and state aid can provide for up to 50% of the project’s total budget, up to 60% for co-productions with members of the European Convention on Cinematographic Co-Production, and up to 90% for culturally demanding cinematographic works.

How paid?

Paid as a cash grant at the end of production in the Czech Republic upon submission of audited statements of costs incurred.


CULTURAL TEST

  1. The film’s story / script / main theme has to be based on event which is part of Czech / European culture, history, mythology, religion.
  2. The film is based on personality belonging to Czech / European culture, history, mythology, religion.
  3. The story of the film relates to European environment / place / location / architectural or cultural environment.
  4. The film’s story/script/ main theme is based on a literary work or adaptations of other artist fields ( fine art, music, etc) with a cultural value.
  5. The film’s story/script/ main theme is focused on actual cultural / social / political theme of Czech or European society.
  6. The film reflects significant Czech or European value, e.g. cultural variety / solidarity / equality / protection of minorities or human rights / tolerance / protection of the environment / respect of culture or family traditions.
  7. The film is focused on Czech / European culture / identity or Czech / European customs and traditions.
  8. The film’s story/script/ main theme is based on actual or historical world events influencing European / Czech society.

The project must receive at least 4 points in this Cultural test.

The points are obtained by fulfilling two of the eight cultural criteria in full, also by partially fulfilling more criteria. Fractional points can not be awarded but the project can get 0, 1, or 2 points for each of the Cultural Criteria.


PRODUCTION CRITERIA

  1. The film is a cinematographic work contributing to the development of the genre. (3 points)
  2. The following professions are Czech citizens or citizens of other EFA states: Director, producer/co-producer, DOP, script writer, lead actor/actress, supporting actor/actress, composer, production designer, costume designer, editor, makeup artist, head of production, postproduction or VFX supervisor, 2nd DOP. (1/2 point for each, 7 points max).
  3. The final film version is in any EEA language. (4 points max, awarded also for percentages of dialogue: 1 point for 10% of dialugue, 2 points for 25%, 3 points for 50%, 4 points for 75%.)
  4. At least 51% of the crew (excluding professions in paragraph 2) are citizens of the EEA. (4 points max)
  5. Shooting on locations or in studios in the Czech republic. (4 points max)
  6. Utilising services of Czech suppliers in the Czech Repubilc. (4 points max – applies for pre production period only)
  7. Utilising the postproduction in the Czech Republic (includes sound and image postproduction, laboratories, sound track recording). (4 points max)

The project must receive at least 4 points form the Cultural criteria test and in total 23 points at least.
(maximum points scorable is 46)

The project will be evaluated by a commission of the Czech State Fund of Cinematography.