Law 1556 of 2012 – Cash rebate 40% – 20%
Colombia offers a cash rebate or cash reimbursement for films partially or totally produced in Colombia (long feature films, TV movies with a broadcast of up to 2 episodes, documentaries and animation). 40% for “film services” (services related to audio-visual pre-production, production or post-production including artistic and technical services) and 20% for “film logistics services” (those that are provided for hotel, catering, and transportation) of the amount spent in the country. The cash rebate applies to services provided by Colombian entities or persons that are domiciled or residing in the country. It will be paid with resources of the Colombia Film Fund (FFC for its Spanish acronym), a financing instrument or account created in 2012 with funds from the General National Budget.
- The project in question shall entail expenditures in film services or film logistics services of approximately USD 440,000.
- The project shall be submitted by its producer, a legal person; that is to say, a company or entity with legal authority to operate.
- The project will be evaluated by the Colombia Film Promotion Committee (CPFC for its Spanish acronym) according to the purpose of Law 1556: To develop Colombia’s film industry, as well as promote tourism and the country’s image.
- The project shall entail total or partial filming in Colombia. As for animated work, this item refers to carrying out production work in the country.
- The producer shall sign a contract stipulating the obligations, conditions, and requirements for the reimbursement to be given and the amount thereof.
- Film services for non-national projects shall be contracted through one or several Colombian film services companies (previously registered at the Film Office of the Ministry of Culture).
- The funds for use in services shall be administered by a trust established in Colombia, through an administration trust or standalone trust.
- Lastly, in order for the reimbursement to be disbursed, there must be approval by an auditing company established in Colombia, which shall also be engaged by the producer. The expert opinion, certificate or report issued by the auditing company shall be sent directly to the administering entity.
- Request to the Colombia Film Promotion Committee – CFPC through the submission of the project to Proimágenes Colombia (Administering entity).
- Proof of the existence and legal representation of the production company.
- Description of the project, total budget and financing information.
- Detailed budget of the project showing expenditures that will be paid in Colombia for film services and film logistics services.
- Deposit of Guarantee: An allocation, as insurance, in the amount of around USD $10,500, which shall be returned to the producer at the end of the contract that is signed if its project is accepted and complies with the requirements mentioned above. (DEPOSIT IN SAVINGS ACCOUNT OF BANCOLOMBIA # 031-949395-90 TO PROIMÁGENES FONDO FÍLMICO COLOMBIA).
*Note 1: The Colombia Film Promotion Committee (CPFC for its Spanish acronym) in session of January 23, 2018 has set a cap per project of $3,464,935,207 COP (around USD $1.2 Million).
*Note 2: The funds available at the Colombian Film Fund for rebate as of 30th of september of 2018 are of around $1.19 million USD.
Submitted projects that meet the above requirements shall be evaluated by CPFC to determine whether they comply with the purposes of Law No. 1556. Considering the fact that Colombia Film Fund -FFC has limited resources (around USD $12 Million for 2014), at the moment of the respective meeting, a decision is reached as to which of the total submissions shall receive reimbursement and in what amount.
NOTE: The content of this document does not constitute any type of professional advice whatsoever. If it is intended to act based upon the information included herein, will be under sole responsibility of the reader, who should seek professional advice for its own particular situation. Therefore, Proimágenes Colombia shall not assume any type of responsibility whatsoever, for any decisions made based on this document or the web page www.locationcolombia.com. All the information for participation purposes must be submitted in Spanish. The content in English is a simple guide for the reader and does not compromise in any way the liability of Proimágenes Colombia.
See Spanish file:
Decree 0437 – Regulatory Law 1556 (SPANISH)
Previously Agreed Upon Procedures and Certifications
Every production company approved for the rebate must present the certification issued by the fiduciary entity and the concept, certification or report of an auditing firm to demonstrate compliance with the established requirements. In the following link you will find the Previously Agreed Upon Procedures and the corresponding appendix.
Agreed Upon Procedures
Concept, Certification or External Audit Report
Annexes fiduciary and auditing certifications
Film Service Company
The film service company is seen as a strategic ally of the production, a facilitator to get the project done in the country and must be registered in the Ministery of Culture based on the requirements established by said institution.