WHY COLOMBIA ?
Colombia offers two incentive options for international productions made in the country: a cash rebate paid back to the producer or a transferrable tax certificate issued to the foreign producer. Both are available 6-8 months after the last eligible payment is made in Colombia (i.e. end of production wrap or post production period). (long feature films, TV movies, documentaries and animation). Said reimbursement is wired to Producer 5-6 months after last eligible payment is made in Colombia (i.e. end of production wrap or post production period). The cash rebate results in a cash payment wired to any international bank account designated by the producer. The tax certificate can be transferred / traded on the financial market.
- 40% for “film services” (services related to audio-visual pre-production, production or post-production including artistic and technical services).
- 20% for “film logistics services” (those that are provided for hotel, catering, and transportation) of the amount spent in the country.
- Net average of approx. 30% of total local spent.
Transferrable tax certificate:
- 35% of the value of foreign investment made in Colombia for production services
- 5% of the value of the certificate payback to the Colombian film commission prior to certificate issuance, meaning that the certificate net value is 33,25% of foreign investment.
Both incentives apply to services provided by Colombian entities or persons that are domiciled or residing in the country.
- The project in question shall entail expenditures in film services or film logistics services of minimum approximately USD 475,000 for 2021.
- The project shall be submitted by its producer, legal person or entity.
- The project will be evaluated by the Colombia Film Promotion Committee (CPFC for its Spanish acronym) according to the purpose of Law 1556: To develop Colombia’s film industry, as well as promote tourism and the country’s image.
- The project shall entail total or partial filming in Colombia. For animation work, production work will have to be made in the country.
- The producer shall sign a contract stipulating the obligations, conditions, and requirements for the reimbursement to be given and the amount thereof.
- Film services for non-national projects shall be hired through a Colombian film services companies (previously registered at the Film Office of the Ministry of Culture).
- All funds to be spent in production services shall be administered by a trust established in Colombia, through an administration trust or standalone trust.
- Lastly, in order for the reimbursement to be disbursed or the certificate to be issued, a locally established auditing company hired by the producer must audit and certificate all expenses.
The expert opinion, certificate or report issued by the auditing company shall be sent directly to the administering entity.