State Aid Might Lead to a Fivefold Increase in the Romanian Film Industry

19-07-2016

State Aid Might Lead to a Fivefold Increase in the Romanian Film Industry

By FNE Staff

Cold Mountain (2003) was shot mainly in Romania

BUCHAREST: A state aid scheme for movie productions in Romania could lead to a fivefold increase in the local film industry, up to approximately 250 m EUR per year. It would also help create some 4,000 new jobs, according to a PwC Romania study.

Also, the indirect multiplying effect induced in the economy could reach up to around 850-974 m EUR annually, through intensified activity in the tourism, transport and service sectors. In addition, the budgetary impact of such a scheme would be a positive one, generating revenues of 120-130 m EUR annually for the state budget.

The scheme proposed by PwC Romania would be implemented for a period of five years, with an average annual budget of 30 m EUR. This could reimburse 25% of the total eligible costs of an international movie production made in Romania and 50% of the income tax paid in Romania by eligible non-residents individuals.

In May 2016 the Romanian Ministry of Culture announced that the tax incentives system will be launched in Romania by the end of 2016.

Published in Romania