HK Improves Film Development Fund

by Mary Swire, Tax-News.com, Hong Kong

31 March 2010

Hong Kong’s Film Development Council (FDC) began to implement measures to enhance the operation of the Film Development Fund (FDF) scheme from March 31, and applications for the financing of film productions under the enhanced scheme are now being invited.

The enhancement measures include the raising of the upper limit of the production budget of a film project financed by the FDF from HKD12m (USD1.55m) to HKD15m; and an increase of the upper limit of the contribution per film project from 30% to 35%, with a possibility of raising the contribution to 40% under very special circumstances.

In addition, the applicant will now be allowed to buy back the copyright of the film from the government five years after it has been theatrically released.

"These measures have taken into account the views of the industry and the experience of the operation of the FDF. They can better cater to the needs of the industry and enhance the user-friendliness of the scheme," the Chairman of the FDC, Jack So, said.

"Film makers of small-to-medium budget productions are encouraged to make the best use of the financing facility to produce more quality films of different genres and help nurture new talent, thereby bolstering the long-term development of the local film industry," he added.

Since its launch in October 2007, the FDF scheme for financing film production has received 23 applications, of which 14 were approved with a total funding of almost HKD39m.

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