Production guide / Incentives
Certain Colombian co-producers working in association with foreign producers shall be eligible for incentives included in Colombian film legislation.
Tax Incentive for Investment in and Donations to certified Colombian productions and co-productions:
Benefit: (If eligibility requirements are met): 41.23% of qualifying spend.
Project caps: The maximum incentive given by the Colombian government to a certified film project is USD $600,000.
Project criteria: Current legislation requires Colombian participation in co-productions be at least 20% of the total cost of the film, and also requires a certain percentage of Colombian artistic participation (as stated in Article 9 and 10 Decree 358 of 2000, modified by the article 71 of Decree 763 of 2009).
Percentage of Colombian technical crew in a national co-production.
To access incentives, the project must be certified or recognized as a national co-production by the Ministry of Culture’s Film Office.
Law 397 of 1997
Articles 4-13 of Decree 358 of 2000
Resolution 756 of 2007
Articles 1-6 of Resolution 1708 of 2009
Articles 71-73 of Decree 763 of 2009
Film law for investors and donorsThe Film Law (Law 814 of 2003) defines the tax benefits for investment in or donations to Colombian film projects.
The benefit consists of an income tax deduction. The contributor pays less income tax than if he or she had not invested in or donated to the film project. And according to the income tax rates included in the latest tax reform for companies, starting in 2008, for every $100 invested or donated, the taxes for which the contributing company is responsible will be reduced by $41.25.
The invested or donated money must be administered by the producer through a trust (stand-alone trust fund or trust administration and payment). The trust ensures that the money is destined to categories established by the Ministry of Culture and once the entire fund is spent, it notifies the Ministry so that a “Certificate of Film Investment” or “Certificate of Donation” is issued.
With investments, which may participate in utilities if the investor and producer agree, the “Certificate of Film Investment” is a negotiable security that can be freely negotiated by endorsement or sold on the secondary market by the holder as long as it is used during the same fiscal year as the investment.
Please note that multiple foreign investments in Colombia are eligible for this tax benefit, whether in the form of stand-alone trusts inside the country to be used in this type of project, or in the form of capital contributions to taxpaying companies in Colombia.
Colombia´s Film Law
Incentives offered by the film development fundThe Film Development Fund provides monetary incentives to competition winners and supports film-related processes (script, development, production, post-production and distribution) and provides automatic incentives for festival promotion and participation. Colombian productions and co-productions are entitled to these non-repayable incentives and grants.
The Fund’s resources come from a contribution paid by exhibitors and distributors of foreign films in theaters throughout the country, and by Colombian film producers. The Fund is administered by Proimágenes en Movimiento and decisions regarding apportioning and selection methods are made by the CNACC (National Council on Film Arts and Culture).
Incentives by the Film Development Fund
official website (spanish only)
Links- mincultura.gov.co - proimagenescolombia.com - pantallacolombia.com - dian.gov.co - proexport.com.co - turismocolombia.com - colombiaespasion.com - cancilleria.gov.co - ideam.gov.co - parquesnacionales.gov.co - das.gov.co - dane.gov.co - banrep.gov.co - superfinanciera.gov.co - asobancaria.com - fasecolda.com- aerocivil.gov.co - actualicese.com - invias.gov.co - gobiernoenlinea.gov.co
Comments in this document have been addressed in a general fashion and are based on what PricewaterhouseCoopers considers a reasonable interpretation of the law in effect at the time they were addressed and are not intended to provide any kind of tax or legal advice regarding the matters contained therein. "PricewaterhouseCoopers" refers to the Colombian firms forming part of the global PricewaterhouseCoopers network, each being a separate and independent legal entity.