Mexican President Felipe Calderón has launched an initiative, called the 'High Impact Support For Film and Audiovisual Industry Program' to make Mexico the 'capital of Latin American cinema' during a visit to the Baja Studios in the state of Baja California.
The government incentives offered include tax credits of up to 7.5% of invoiced costs verifiable as having been incurred in Mexico, on productions costing more than MXN70m (USD5.6m) or with post-production costs of at least MXN20m. The president also mentioned that the exported product would be zero-rated for value-added tax purposes.
The scheme will be administered by the state-run film financing agency, Imcine (the Mexican Institute of Cinematography), and the Mexican trade and investment agency, ProMexico; foreign producers will need to hire local production services.
The president stated that USD20m would be allocated to the program, rising to USD40m in the second year in order to attract big-budget cinematic projects and generate MXN3.5bn in turnover.
A comprehensive report in our Intelligence Report series examining tax-sheltering arrangements for investors, including Venture Capital, Forest Finance and Film Finance in a number of key jurisdictions, is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report5.aspTags: tax | investment | film finance | budget | value added tax (VAT) | Mexico | tax credits
Network Tweets Archive
| Resources | Partners
| Site Map | Links
| Newsletter
Archive | Contact
| RSS Feeds
About | Syndication |
Advertising & Marketing |
Recruitment |
Terms & Conditions |
Privacy
Copyright © 2012 - All Rights Reserved - Tax-News.com
All content provided by BSI Media
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment