Wednesday, September 10, 2008

Hungary Wins Tax Breaks

Last year I wrote a lot about Hungary's efforts to pass tax breaks for film production and the impact it would have on the booming studio business, particularly in Budapest.

Well those breaks passed the final hurdle recently with EU approval.

John Nadler's article in Variety gives the full story.

BUDAPEST -- After months of uncertainty the Hungarian film industry
breathed a sigh of relief following a recent European Commission (EC)
decision to approve its tax-incentive program.
Industry insiders admit there was concern the EC might not ratify an
amended Hungarian Film Law passed in June because of its tax scheme.

But Brussels surprised Hungarian producers by ratifying the 20% rebate
contained in the original law, and ordering Budapest to extend tax
incentives to include costs incurred by productions while shooting outside

"Frankly, I think the new scheme is an improvement," says Andras Simonyi,
chairman of Korda Filmstudio, Hungary's largest studio complex, located
just west of Budapest. "In this competitive world, the expanded incentives
(of national and foreign tax deductions) are a good combination."