Overheard at IBC 2015: Which country can offer the biggest tax break?
Overheard at the International Broadcasting Convention (IBC2015) in Amsterdam, strident views on the next country to turn the head of the Hollywood film industry. All this prompted by the EU approval of the UK Government’s plans to increase tax breaks.
It all started in a crowded corner of the exhibition hall, when Patrick noticed a man gesticulating wildly and overheard the rest. It got us thinking…
Serbia, the man was saying, won his backing based on the announcement in August of a 20% cash rebate on qualifying local spend for foreign productions. Serbia is a competitive destination, he explained to his colleague who looked as if he’d suddenly remembered a conference session he urgently needed to attend, which shares the kind of variety of locations that helped neighbouring Croatia attract the Game of Thrones to Dubrovnik.
Ten years ago the Czech Republic and Hungary were popular, but has the film industry now moved on? Fresh back from visiting the big film studios in Budapest set up to take advantage of an attractive tax regime, Patrick was interested to hear more and leant closer. Tax rebates of 20%, the second man couldn’t resist pointing out, are pretty much the norm for a whole range of countries. But long-term financial planning for film production, which takes on average two or three years, can be tricky when incentives may disappear overnight, as has happened in Belgium, the Netherlands and Luxembourg. The first man nodded, sadly.
While labour costs and local talent can’t be ruled out as important factors in choosing a location, both men agreed that the film industry can appear only to be interested while there are tax incentives. Georgia and California are now vying for business with the UK, which has been very effective in attracting Hollywood studios.
We at Power Gems are perhaps fortunate, or you could call it savvy strategic planning, to have facilities in the UK, Georgia and California. While the markets worthy of further expansion continue to be a subject of argument.
But what do you think? Get in touch and let us know
