New incentive related to the law of Cinematography in Montenegro

Montenegro/June 2015

Since becoming independent in 2006, the Government of Montenegro has recognized the need to eliminate obstacles and reform the business environment, to open the economy to foreign investors making it closer to the European Union.

One important step is related to the seventh art.

The Government plans to adopt the Law on Cinematography, which provides the return of part of the funds spent by foreign producers filming in Montenegro.

This would also gives out promotion of Montenegro, and makes a new type of industry – film tourism.

It is predicted that the refund will not have any tax character and it would provide conditions that a producer must meet in order to qualify for this incentive measure. For example, he must spend minimum amount of €100.000 in Montenegro, and fulfilled all obligations related to taxes and contributions.

The funds for film fund will be guarded from income individuals and legal entities that directly or indirectly use cinematographic works or provide access to their use in different ways.

As taxpayers law establishes a public service and commercial broadcasters with national coverage, operators of cable, satellite and internet distribution of radio and television programs, theatrical displays, operators of public communications networks, including operators of Internet access providers, that  rent cinematographic works on request, such as a T-com Extra Tv.

Undoubtedly, this contributes exploitation of cinematographic works.

The calculation of extraction rates would be determined by their achieved annual income just from performing services relating to the possibility of using a cinematographic work. The contribution rate for the Film Fund is one percent of that income.

“The basis for the allocation of funds at the cinema displays 3% of each sold ticket, while the public service allocates funds in the amount of 5% of the total annual revenue generated from marketing,” states the law.

Andrea Pavlicevic
Eurofast Global, Podgorica Office
+382 20 228 490