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Rebates

Regulatory framework

Who grants the rebates

Who qualifies a rebate

Cost eligible for subsidies

Qualification test general information

Qualification test feature films and series

Qualification test documentary films and series

Qualification test animation films and series

REGULATORY FRAMEWORK

On November 7, 2019, the Russian government adopted regulation No 1420 “On state support for film industry organisations providing services or performing work related to film production by foreign companies on Russian territory.”

WHO GRANTS THE REBATES

The Russian Export Centre (REC) open joint-stock company acts as an agent of the Russian Government in providing federal budget subsidies to Russian film industry organisations that provide services (perform works) related to the production of audiovisual content by foreign entities on the territory of the Russian Federation. 

REC is a state institution in charge of supporting non-resource exports. It provides Russian exporters with a wide range of financial and other services, including help with organising export supplies, legal support of deals, currency control, analytical research, adaptation of promo materials and organisation of marketing events for product promotion. Since 2018, REC has collaborated with Russian production companies, fostering international representation of local audiovisual content.

REC invites and selects applications from film industry organisations, and approves – on the basis of an expert council’s decision –the list of successful applicants ranking them in descending order on the strength of their scores in a qualification test. 

In 2021, a total of RUB 100m has been allocated for these subsidies.

WHO QUALIFIES FOR A REBATE

A film industry organisation registered on the territory of the Russian Federation and carrying out operations in compliance with the federal law “On state support for the Russian Federation film industry” that renders services (performs works) related to a foreign production of audiovisual content on the territory of the Russian Federation on the basis of an export contract signed with a foreign producer of audiovisual content.

Mandatory requirements for film industry organisations: 

  • a film industry organisation has been operating for at least a year; 
  • the film industry organisation has an export contract signed with a foreign producer; 
  • the film industry organisaton is in no way affiliated to the foreign producer; 
  • there are testimonies in place signed by the head and the chief accountant (if applicable) of the film industry organisation confirming that as of the 1st day of the month preceding the one in which the application is filed:`

– the film industry organisation is not a foreign legal entity or a Russian legal entity which has foreign legal entities participating in its authorised (joint stock) capital that are registered in a country or territory on the Russian Finance Ministry’s list of countries and territories offering a preferential tax regime and/or not requiring disclosure of information on financial operations (offshore zones) involving said legal entities; 

– the film industry organisation is not in arrears with repaying subsidies and budget investment to the federal budget, including those provided under other laws of the Russian Federation, and does not have any other overdue debt to the federal budget; 

– the film industry organisation is not in the process of reorganisation, liquidation, or bankruptcy;

– the film industry organisation does not receive funds from the federal budget in accordance with other legal acts of the Russian Federation for similar purposes;

– the film industry organisation has no overdue debt on monetary obligations to the Russian Federation, as defined in Article 934 of the Budget Code of the Russian Federation.

COSTS ELIGIBLE FOR SUBSIDIES

1. Cost of purchasing

    • rights to use materials from film funds and film archives
    • rights to use materials (footage and music) from stocks and libraries
    • rights to intellectual property of citizens of the Russian Federation

2. Writing costs

    • writing a screenplay (loglines, synopses, treatments, story outlines, scripts, etc.)
    • adapting foreign literary works
    • editing a screenplay
    • writers’ and editors’ services

3. Direction Department costs

    • services of first assistant directors
    • services of casting directors
    • selecting actors, talent agencies, casting agencies; conducting auditions
    • casting extras, background performers, stand-ins, dubbing cast, etc.
    • services of casting associates
    • services of script supervisors and script assistants
    • services of storyboard artists
    • services of on-set editors
    • services of other members of the Direction Department

4. Cast costs

    • fees of lead actors, background performers, extras, stand-ins, dubbing cast, who are Russian citizens, paid in the course of producing audiovisual content on the territory of the Russian Federation. The costs covered by the subsidy cannot exceed 20 percent of the total spending on the territory of the Russian Federation.
    • services of extras coordinator

5. Administrative Department costs

    • services of line producers
    • services of executive producers
    • services of unit managers
    • services of deputy unit managers
    • services of production coordinator
    • services of production managers
    • services of assistant producers
    • services of procurement officers

6. Art Department costs

    • services of production designers
    • services of art directors
    • services of set dressers
    • services of stagehands/grips
    • services of builders
    • services of engineers
    • services of other members of the Art Department
    • creating sets, including designs, blueprints, engineering designs, mock-ups, etc.
    • creating technical, engineering, electronic, and mechanical devices for filming
    • decorating and fitting film sets; making props, furniture, sets, including designs, blueprints, engineering designs, etc.
    • services of film set staff, including managers, electricians, firefighters, cleaners, workers, movers, decorators, etc.
    • tools and machinery for building or decorating sets
    • decoration and construction materials as well as tools and supplies used by the Art Department

7. Location costs

    • services of location managers and location scouts
    • obtaining filming permits
    • road closures for filming
    • renting locations and interiors

8. Props Department costs

    • services of props masters
    • services of painters
    • services of scene masters
    • services of other members of the Props Department
    • making props, including designs, blueprints, engineering designs, mock-ups, etc.
    • production and character props, dummies, etc.
    • jewelry and accessories, including handbags, rucksacks, suitcases and other items necessary to create a character

9. Stunts and Special Effects costs

    • services of stunt coordinators, stunt performers, trainers and other experts in the Stunts department
    • services of special effects supervisors, snow business, pyrotechnics (including supplies), special effects engineers and other special effects experts
    • directing, rehearsing, staging stunts, including tests
    • directing, preparing, arranging, creating special effects, including tests
    • pyrotechnic devices
    • stunt props

10. Hair/Makeup and Wardrobe costs

    • services of makeup artists
    • services of makeup staff
    • services of prosthetic makeup artists
    • services of hair artists
    • services of other members of the Hair and Makeup Department
    • services of costume designers
    • services of wardrobe masters
    • services of tailors
    • image making (services of hair stylists, makeup artists, etc.)
    • making, renting costumes
    • appliances used by the Wardrobe Department to look after costumes and accessories, including irons, ironing boards, steamers, sowing/knitting kits, etc.
    • wigs

11. Camera Department costs

    • services of directors of photography
    • services of camera operators (cameramen)
    • services of first assistant cameras (focus pullers)
    • services of second assistant cameras (clapper loaders)
    • services of camera technicians
    • services of playbackers (video assist operators)
    • services of digital imaging technicians
    • services of steadicam operators
    • services of quadcopter operators and pilots
    • services of other members of the Camera Department

12. Lighting Department costs

    • services of gaffers
    • services of assistant gaffers
    • services of lighting technicians
    • services of generator operators

13. Grip and Electric Department costs

    • services of key grips
    • services of grips
    • services of dolly grips
    • services of crane operators

14. Sound Department costs

    • services of sound designers
    • services of sound technicians
    • services of boom operators
    • services of other members of the Sound Department

15. Transportation Department costs

    • services of drivers
    • services of transportation coordinators
    • services of picture car coordinators
    • transport provision and servicing
    • cargo transportation (via any means of transport), services of customs brokers and logistics companies, clearance of customs and other accompanying documents and permits
    • parking services
    • rental of special vehicles
    • rental of vehicles, including passenger and freight transport, picture cars, special equipment (including ski lifts, scissor lifts, high-up trucks, car lifts, manipulators, tow trucks, cranes), mobile homes, specialised or converted vehicles (including makeup trailers, wardrobe trailers, trailers, toilet cars, offices on wheels, catering trailers, playback trailers, generators, etc.), street sweepers, water tank carts
    • rental of other transport necessary for filming

16. Travel and accommodation costs

    • air tickets, railway tickets, tickets for water transport, provided that the point of destination or departure is on the territory of the Russian Federation. In the event of a complex route, the subsidy can apply only to the segment from/to the territory of the Russian Federation
    • Russian visas for foreign nationals on the film crew who are involved In the production of audiovisual content (or part of it) on the territory of the constituent entities of the Russian Federation. The subsidy can cover 100 percent of the cost of the visa fee
    • work permits for foreign nationals on the film crew who are involved in the production of audiovisual content (or part of it) on the territory of the constituent entities of the Russian Federation
    • accommodation costs

17. Filming equipment costs

    • rental of lighting equipment and components as well as supplies used by the Lighting Department
    • rental of sound recording equipment, components and supplies
    • rental of camera equipment, components and supplies used by the Camera Department
    • rental of special means of communication, including walkie-talkies and their components
    • rental of special equipment, including cranes, autorobots, Russian Arms, gyro-stabilised heads, farms, dynamic light, dollies, sliders, copters, camera rafts and aqua boxes, crash boxes and other devices
    • rental of generators, grip trucks, camera vans, dolly carts, vehicles for camera cranes, etc.

18. Soundstages, offices, warehouses and other premises and associated costs

    • lease of soundstages and related costs, including passes, electricity, utilities, pavilion lifts, special-purpose rooms: makeup rooms, wardrobe rooms, actors’ dressing rooms and other premises for the film crew
    • lease of office and warehouse spaces, garages for picture cars, wardrobe and makeup rooms, props and art rooms, actors’ dressing rooms, director’s rooms and other premises, provided that such premises are leased specifically

19. Film crew support and additional services

    • services of photographers
    • cleaning services
    • catering and craft services (services of catering companies)
    • weather forecasting services
    • law-enforcement services
    • maintaining public order on set
    • guarding valuables, sets, etc.
    • ambulance services
    • fire department services
    • health and safety items on set
    • medicines, first aid kits – not more than 0.5 percent of the total costs on the territory of the Russian Federation
    • purchase of office equipment / filming set items (loudspeakers, cones, trash cans, gloves, safety tapes, fences, vests, umbrellas, binding machines, stationery, fire extinguishers, cable ducts, benches, lamps, ladders/stepladders, rubber boots, wetsuits, body protection, warm clothes for actors and film crew, tents/marquees, ventilators, heaters, goggles, helmets, headphones, respirators, hangers, irons, ironing boards, hair dryers, curling irons, extension cords, mats, information boards and signs, foodstuffs, dishes, etc. ). The subsidy cannot exceed 2 percent of the total spending on the territory of the Russian Federation
    • services of animal handlers
    • rental of aircraft
    • rental of military hardware
    • translation services
    • services of climbers
    • services of divers
    • services of trainers
    • services of beauticians
    • services of chefs and buffet staff
    • photostudio services

20. Animation and Computer Graphics costs

    • services of visual effects, animation and computer graphics producers
    • services of visual effects, animation and computer graphics supervisors
    • services of visual effects, animation and computer graphics coordinators
    • services of rendering managers
    • services of storyboard, layout, animation, contouring, phasing, tracing, filling artists
    • services of character, background, props designers, modellers and model makers
    • services of texture artists
    • services of compositing artists
    • services of shading and lighting artists
    • services of visual effects artists
    • services of technical directors
    • services of visual effects editors
    • other services of visual effects and computer graphics staff
    • animation services, including the creation of sketches (concept art), models, color explication, storyboarding, animatics, dubbing, layout, rough and final animation, image processing, compositing, phasing, contouring, drawing, filling, line testing, scanning, rendering, editing, transcribing audio recordings, developing backgrounds, developing characters, developing props, libraries of graphic objects, poses, facial expressions, etc.
    • model making (armature, sculpting, body building, painting, making costumes), using various technical appliances
    • creating computer graphics, including rotoscoping, cleaning up, 2D/3D matchmoving, keying, compositing, concept art, matte painting, pre-visualisation production, post-visualisation production, modelling, sculpting, model and scene conversion, texturing, rigging/setup, shading, lighting (digital lighting), layout, asset production, animatics production, technical animation, character animation, trekking, camera staging and animation, rigid-body dynamics, soft-body dynamics, fluid dynamics, smoke/fire dynamics, hair dynamics, crowd simulation, 3D rendering, stereographics, etc.
    • motion design
    • motion capture with further processing of motion capture data
    • programming services
    • creating film credits
    • other animation services
    • other computer graphics services

21. Editing and Colour Grading costs

    • film processing
    • supplies, including negative, positive, duplicating film
    • sound processing
    • sound supervising
    • cleaning up, recording and lip syncing dialogue
    • recording and editing synchronous noises
    • sound design
    • premixes
    • re-recording (5.1/Atmos, Dolby encoding)
    • orchestra recording and mixing (including a conductor, rental of a recording studio, a sound designer, instrument tuning, instrument rental, creating scores, etc.)
    • services of individual musicians
    • services of recording studios
    • services of a music producer
    • services of a music editor
    • other sound processing services
    • image processing services
    • LTO archiving of filmed material
    • rental of editing studios
    • image conversion and sound synchronisation
    • colour grading
    • conforming
    • raw images for computer graphics (VFX)
    • computer graphics integration (VFX)
    • stereo conversion
    • rendering
    • DCP mastering and production of other raw images as required
    • services of editing and colour grading professionals
    • services of a post-production producer
    • services of post-production managers
    • services of post-production assistants
    • services of film editors
    • services of assistant editors
    • services of conversion, conforming and colour grading professionals
    • services of other editing and colour grading professionals
    • film credits translation and production
    • audio description services

22. Costs of transferring, storing and processing data. The subsidy cannot exceed 1 percent of the total spending on the territory of the Russian Federation

    • purchase of hard disks, flash drives, drives and other storage devices, as well as specialised containers for their storage and transportation
    • rental of servers, render farms, ftp, sftp and other servers located on the territory of the Russian Federation
    • rental of cloud storage facilities with servers located in the Russian Federation
    • acquisition of licenses/tariffs for specialised software created in the Russian Federation for film production

23. Fees for key creatives who are citizens of the Russian Federation during production on the territory of the Russian Federation. The amount of the subsidy cannot exceed 15 percent of the total spending on the territory of the Russian Federation

    • director’s fee
    • producer’s fee (fee of the copyright holder on the audiovisual content)
    • scriptwriter’s fee
    • composer’s fee

24. Organisation services. The subsidy cannot exceed 10 percent of the total spending on the territory of the Russian Federation

    • service fee of an organisation providing services (performing works) related to the production of audiovisual content on the territory of the Russian Federation by foreign entities

25. Unexpected expenses. The subsidy cannot exceed 3 percent of the total spending on the territory of the Russian Federation

26. Banking, insurance, financial and accounting services

    • health insurance for cast and crew during filming on the territory of the Russian Federation, insurance, first aid on set
    • auditing services
    • accounting services
    • financial services

QUALIFICATION TEST GENERAL INFORMATION

To qualify for a subsidy, an applicant must score at least 20 points in sections 1-5 of the qualification test. Extra points can be gained for additional criteria in section 6. The total number of points determines an applicant’s position on the list of subsidy recipients. In the event of an equal number of points, an organisation that has planned a larger amount of spending on the territory of the Russian Federation gets a higher position on the list. 

Qualification tests differ for

– feature films and series 

– documentary films and series 

– animation films and series.

The standard amount of rebate is 30 percent of production costs subject to the project passing a qualification test and complying with minimum spending requirements for various kinds of audiovisual products (at least 52 minutes / 25 minutes per season for animated series):

  • RUB 15m for feature films;
  • RUB 3.75m for documentaries;
  • RUB 5m for animation.

 

The system operator collects applications for rebates, including qualification test data:

  • Number of days for pre-production (for animation), production and post-production periods on Russian territory; 
  • Presence of Russian citizens among the authors and creative crew;
  • Proportion of Russian citizens involved in the production; 
  • Length of the foreign producer’s experience in the industry;
  • Relevance of the plot to the Russian Federation (its history, culture, current issues, etc.);
  • Planned spending on the territory of the Russian Federation.

 

A subsidy can be increased to up to 40 percent in the following cases:

  • Addition of extra Russian citizens to the film crew; 
  • Addition of extra shooting days/ extra work on Russian territory; 
  • Increase of planned spending in Russia.

 

If a subsidy application is approved, REC signs an agreement with the Russian film company and submits the relevant data to the Economic Development Ministry, which, in turn, transfers the allocated subsidy to a bank account. Upon completion of the production, REC collects financial reporting and audits it.

 

QUALIFICATION TEST FEATURE FILMS AND SERIES

Section I
1.The number of days of principal photography planned on the territory of the Russian Federation (including outdoor, indoor and studio filming)under 6 filming days – 0 points; from 6 to 12 filming days – 5 points; from 13 to 18 filming days – 10 points; at least 19 filming days – 15 points
2.The number of days of principal photography planned on soundstages on the territory of the Russian Federation up to 30 percent of the total number of filming days on the territory of the Russian Federation – 3 points;

over 30 percent of the total number of filming days on the territory of the Russian Federation – 6 points;
Section II
3.At least one of the following creatives is a citizen of the Russian Federation: director; scriptwriter; producer; composeryes – 2 points; no – 0 points
4.At least one of the following members of the crew is a citizen of the Russian Federation: director of photography or camera operator; production designer or art director; costume designer; film editor or assistant editor; makeup artist; sound designer; prop master; first assistant director; line producer or production manager; post-production coordinator; visual effects supervisoryes – 2 points; no – 0 points
5.Citizens of the Russian Federation on the film crew make up at least 70 percent of the crew on the territory of the Russian Federationyes – 10 points; no – 0 points
Section III
6.The number of years the foreign producer has been in businessunder 3 year – 1 point; from 3 to 5 years – 3 points; over 5 years – 3 points
Section IV
7.The plot of the audiovisual product is based on events associated with Russian history, culture, religion, mythology, science or nature or the plot is devoted to a famous figure associated with Russian culture, history, religion or science  yes – 4 points; no – 0 points
8.The subject matter of the audiovisual product touches upon the life of the population of the Russian Federation yes – 4 points; no – 0 points
Section V
9.Computer graphics work is planned on the territory of the Russian Federation yes – 1 point; no – 0 points
10.Sound design work is planned on the territory of the Russian Federationyes – 1 point; no – 0 points
11.Image processing work is planned on the territory of the Russian Federationyes – 1 point;  no – 0 points
12.Special effects work is planned on the territory of the Russian Federation yes – 1 point; no – 0 points
 The number of points scored in the qualification test (sections I – V):______ out of 50 points (but not fewer than 20 points)

Section VI

Additional criteria for determining an applicant’s position on the list of subsidy recipients

13.Amount of spending planned on the territory of the Russian Federationfrom 2 to 3 minimum spends – 10 points; from 3 to 5 minimum spends – 25 points; over 5 minimum spends – 25 points
 The number of points scored in the qualification test (sections I – V) and additional criteria *________ points

* With the minimum spend on the production of a documentary film or series set at 3,750,000 roubles.

Note. Indicators for increasing the amount of subsidy from the federal budget to film industry organisations that provide services (perform work) to 40 percent of the costs associated with the production of documentary films and series by foreign producers on the territory of the Russian Federation are the following: 

citizens of the Russian Federation on the film crew make up at least 90 percent of the crew on the territory of the Russian Federation;

spending planned on the territory of the Russian Federation amounts to at least 18,750,000 roubles.

QUALIFICATION TEST DOCUMENTARY FILMS AND SERIES

Section I
1.The number of days of principal photography planned on the territory of the Russian Federation (including outdoor, indoor and studio filming)under 3 filming days – 0 points; from 3 to 5 filming days – 5 points; from 6 to 12 filming days – 10 points; at least 13 filming days – 15 points
2.Principal photography on soundstages on the territory of the Russian Federation yes – 3 points; no – 0 points
Section II
3.
At least one of the following creatives is a citizen of the Russian Federation: director; scriptwriter; producer; composeryes – 2 points; no – 0 points
4.At least one of the following members of the crew is a citizen of the Russian Federation: director of photography or camera operator; production designer or art director; costume designer; film editor or assistant editor; makeup artist; sound designer; prop master; first assistant director; line producer or production manager; post-production coordinator; visual effects supervisoryes – 2 points; no – 0 points
5.Citizens of the Russian Federation on the film crew make up at least 70 percent of the crew on the territory of the Russian Federationyes – 10 points; no – 0 points
Section III
6.The number of years the foreign producer has been in businessunder 3 year – 1 point; from 3 to 5 years – 3 points; over 5 years – 3 points
Section IV
7.The plot of the audiovisual product is based on events associated with Russian history, culture, religion, mythology, science or nature or the plot is devoted to a famous figure associated with Russian culture, history, religion or science  yes – 4 points; no – 0 points
8.The subject matter of the audiovisual product touches upon the life of the population of the Russian Federation yes – 4 points; no – 0 points
Section V
9.Computer graphics work is planned on the territory of the Russian Federation yes – 1 point; no – 0 points
10.Sound design work is planned on the territory of the Russian Federationyes – 1 point; no – 0 points
11.Image processing work is planned on the territory of the Russian Federationyes – 1 point;  no – 0 points
12.Special effects work is planned on the territory of the Russian Federation yes – 1 point; no – 0 points
 The number of points scored in the qualification test (sections I – V):______ out of 50 points (but not fewer than 20 points)

Section VI

Additional criteria for determining an applicant’s position on the list of subsidy recipients

13.Amount of spending planned on the territory of the Russian Federationfrom 2 to 3 minimum spends – 10 points; from 3 to 5 minimum spends – 25 points; over 5 minimum spends – 25 points
 The number of points scored in the qualification test (sections I – V) and additional criteria *________ points

* With the minimum spend on the production of a documentary film or series set at 3,750,000 roubles.

Note. Indicators for increasing the amount of subsidy from the federal budget to film industry organisations that provide services (perform work) to 40 percent of the costs associated with the production of documentary films and series by foreign producers on the territory of the Russian Federation are the following: 

citizens of the Russian Federation on the film crew make up at least 90 percent of the crew on the territory of the Russian Federation;

spending planned on the territory of the Russian Federation amounts to at least 18,750,000 roubles.

QUALIFICATION TEST ANIMATION FILMS AND SERIES

Section I
1.The pre-production and part of the production period (storyboarding, editing, animatics, character design) take place on the territory of the Russian Federationyes – 5 points; no – 0 points
2.The number of scenes in the script envisaging any work on the territory of the Russian Federation, including layouts, animation, visual effects, visualisation (lighting and rendering), compositing, etc. The number of models in the script to be made on the territory of the Russian Federation, including models of characters, models of locations from 10 to 30 percent – 5 points; over 30 percent – 10 points

3.

Editing and colour grading work is carried out on the territory of the Russian Federationfrom 10 to 30 percent of the total budget – 3 points; over 30 percent – 6 points
Section II
4.At least one of the following creatives is a citizen of the Russian Federation: director; producer; scriptwriter; composer yes – 3 points; no – 0 points
5.At least one of the following members of the cast is a citizen of the Russian Federation: actor voicing/dubbing a leading part; actor voicing/dubbing a supporting part  yes – 3 points; no – 0 points
6.At least one of the following members of the production team is a citizen of the Russian Federation: animation supervisor; character designer; director of photography or camera operator; production designer or art director; costume designer; film editor or assistant editor; makeup artist; sound designer; prop master; first assistant director; line producer or production manager; post-production coordinator; visual effects supervisor; location designer or background designer; modelling supervisor; layout supervisor; visualisation supervisor; compositing supervisor; film editor or assistant editor yes – 4 points; no – 0 points
Section III
7.The number of years the foreign producer has been in businessunder 3 years – 1 point; from 3 to 5 years – 2 points; over 5 years – 3 points
Section IV
8.The plot of the audiovisual product is based on events associated with Russian history, culture, religion, mythology or is an interpretation of Russia’s past, present or future; or is devoted to a historical or present-day figure associated with Russia yes – 3 points; no – 0 points
9.The plot is based on a Russian literary work or is an adaptation of other artistic disciplines of cultural significance (visual arts, music, etc.) yes – 3 points; no – 0 points
10.The plot of the audiovisual product is intended for children yes – 10 points; no – 0 points
 The number of points scored in the qualification test (sections I – IV):______ out of 50 points (but not fewer than 20 points)

Section V 

Additional criteria for determining an applicant’s position on the list of subsidy recipients

11.Amount of spending planned on the territory of the Russian Federation*from 2 to 3 minimum spends – 10 points; from 3 to 5 minimum spends – 25 points; over 5 minimum spends – 50 points
 The number of points scored in the qualification test (sections I – IV) and additional criteria________ points

* With the minimum spend on the production of an animation film or series set at 5,000,000 roubles.

Note. Indicators for increasing the amount of subsidy from the federal budget to film industry organisations that provide services (perform work) to 40 percent of the costs associated with the production of animation films and series by foreign producers on the territory of the Russian Federation are the following:

at least 50 percent of the total amount of work, including pre-production, production and editing and colour grading, is planned on the territory of the Russian Federation ;

spending planned on the territory of the Russian Federation amounts to at least 25,000,000 roubles.

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