Fast and simple 25 % cash rebate
Production incentive that bases on 25 % case rebate of the spend in Finland will be introduced in the beginning of 2017 for fictional feature films, documentary films and serial fiction and animation productions. Production incentive is administered by Tekes, the Finnish Funding Agency for Innovation.
Disbursement may be applied from Tekes in the beginning of January 2017.
Disbursement may be applied by Finnish and foreign production companies, production service companies or other companies chosen in the audiovisual industry that produce an agreed portion of the production. Entities excluded from application include television companies or companies in which a television company has an at least 15% interest; government, municipal or parochial authorities or institutions; companies in which the State is a majority holder, or other, similar organisations or institutions.
The disbursement covers a maximum of 25% of the costs eligible for support of a production completed entirely or partly in Finland. Eligible costs include costs incurred from the production of an audiovisual work, including pre- and post-production, in Finland. Tekes will approve costs from the date when the application was registered at Tekes. Tekes will pay the disbursement against actual costs.
- Fictional feature film
- Documentary film
- Serial fiction written for the screen
- Animation productions.
Applications may be submitted at any time. Applications will be handled in the order they arrive. Productions must fulfil the requirements set for production incentives. Disbursement constitutes discretionary support.
For what not?
- Advertisements and marketing productions
- Reality TV, talk show or soap operas
- Music videos or recordings of musical events
- Footage of entertainment or sports events, and their recordings
- Audiovisual productions for companies' marketing purposes or personnel training
Costs eligible for disbursement
- Purchases of goods and services, and the rental of equipment and facilities for production purposes from companies liable to pay tax in Finland.
- Salaries subject to withholding tax paid to employees who are liable to pay income tax in Finland.
- Costs incurred in Finland from actions taken to make the work more accessible to disabled persons.
- Other costs (Flatrate) max. 20% of the total sum of salaries and purchases. Other eligible costs may include the producer's fee and overheads. These do not have to be itemised.
Cost that are not disbursed include
- Legal services
- Funding expenses and any other funding acquisition costs
- Marketing and distribution expenses
How does the production incentive work?
How do I apply?
You can contact Tekes already when you are preparing plans for a production in Finland. We recommend that you facilitate the discussion by sending us a summary of your project in advance. The application must be submitted in the Online Service provided by Tekes. A Finnish business ID is needed in application phase meaning that in case of foreign company the Finnish production coordinator company submits the application on behalf of the foreign company.
The production incentive is based on block exemption regulation No 651/2014, see Article 54➦, on the promotion of culture and cultural heritage and the Finnish government's decree on funding for the production of audiovisual works.
All applications are required to have:
- A distribution agreement for at least one platform or one territory
- The overall production budget and consumption created in Finland must be at least as shown in the table below:
A long drama film
Serial fiction and animation
Mimimum consumption in Finland
Minimum total budget for the production
5,500€ per minute
- Participation in the production by a Finnish joint producer who is entitled to intellectual property rights of the completed production, AND/OR, participation of a Finnish production coordinator in the production.
- The production involves the use of Finnish artistic or other creative special expertise, such as: narration, direction, acting, production design, storyboard, effects, colour grading, animation character design, composing, music, sound design, product design, fashion design, AND/OR, the production depicts Finnish locations such as landscapes or architecture, or depicts the Finnish way of life or Finnish competence in a recognisable way.
Applications will be processed within about 40 days. Applications will be evaluated by a Tekes representative and two audiovisual industry experts from an independent expert pool set by Tekes. A conditional funding decision may be given when 50% of the total funding of the production has been raised. The conditional funding decision is valid for 6 months, during which time the production is monitored for progress in line with the schedule outlined in the funding decision. The funding decision will be effective once all the conditions laid down in Tekes' conditional funding decision have been fulfilled. As a rule, this requires that 80% of the production's funding has been secured.
The name of the funding applicant, the amount of funding applied for and granted, and the record number of the application become public information once the application has been sent.
Reporting and disbursement
If a Finnish joint producer is involved, paying for expenses incurred in Finland, the joint producer is the disbursement applicant, receiving the funding decision.
If a production coordinator is used in the production, the following must be adhered to:
- Production coordinator submits the application form in Tekes Online Service, the foreign company being the consignee of the disbursement.
- The coordinator procures services for the main producer, pays the invoices and charges the main producer for their expenses and the coordinator's own fee. The coordinator keeps an itemised record of all expenses.
- The main producer and coordinator make a details agreement between themselves, also agreeing on the terms of payment and payment schedules.
- The coordinator will submit the auditor's statement, invoices and the record of expenses to the main producer. The main producer pays the coordinator's invoice.
- The main producer submits the accounts to Tekes. These accounts consists of the record of expenses submitted by the coordinator, and the auditor's statement.
- Tekes disburses the main producer provided the record of expenses and auditor's statement has been submitted to Tekes by the deadline.
The auditor must ensure that the items in the record of expenses have been paid to the subcontractors and that the main producer has paid the coordinator's invoice. Some costs may be disbursed during the production against a separate audit. Cost statements are submitted in the Tekes Online Service, appended with an auditor's report of specified form by an independent Finnish auditor (link coming later). The targeted disbursement time is 21 days after the submission of the cost statement and appendices to Tekes.
Find more information about applying and the application documents: https://www.tekes.fi/en/funding/production-incentive-for-the-audiovisual...