A Netflix action comedy to be shot in Ukraine

A Netflix action comedy to be shot in Ukraine

📽 Ukraine proves to be an attractive film production destination. Netflix, a popular U.S. streaming service, will shoot its movie in Kyiv. “The Last Mercenary” is the action comedy starring Jean-Claude Van Damme. The shooting will take place in Paris and Kyiv.

Ukraine, in general, has become a booming location for the global filming industry, as the the country’s top-notch talent and affordable prices make it an attractive alternative to Hollywood.

🎞 The recent successful HBO Chornobyl mini-series was shot in Ukraine. Western giants show a great interest in the Ukrainian capital: Apple, Google, Diesel, Mazda, BMW
and Lacoste shot their ads in the Ukrainian metropolis.

State support for foreign filmmakers in Ukraine

In October 2019, President of Ukraine Volodymyr Zelenskyy signed Law to support foreign filmmakers.

The document, in particular, provides:

  • a State subsidy to reimburse 25% of the cost to foreign filmmakers to shoot films in Ukraine
  • an additional refund of 5% of the costs if foreign filmmakers use the works of Ukrainian authors or a story about Ukraine to make films
  • separately, the foreign film production entity may claim for reimbursement of 10% (if personal income tax was paid in the city of Kyiv) or 4.5% (in case if personal income tax was paid in the territory of Ukraine other than city of Kyiv) of the remuneration of actors and film crew, who are non-residents of Ukraine, carry on their business and/or reside outside Ukraine (if such payments are taxable in Ukraine).

A producer can receive a rebate of 25% of eligible expenses if all the following criteria are met:

  • expenses are fully or partially incurred in favour of a company registered in Ukraine
  • the film complies with all requirements of duration and total amount of incurred eligible expenses (with eligibility depending on the type of film)

    🔗 a motion picture or animation intended for cinema viewing – minimum production costs spent in Ukraine is approx. USD347,400 and minimum duration 74 minutes
    🔗 a motion television film or animation film consisting of one or more series – minimum production costs approx. $97,000 and minimum duration 74 minutes
    🔗 a documentary intended for viewing in cinemas and/or to be shown on television – minimum production costs approx. USD61,000 and minimum duration 52 minutes
    🔗 a television series or animated television series, or a separate part (series) – minimum production costs approx. USD292,000 and minimum duration 40 minutes
    🔗 a commercial or music video intended to be shown on television, viewing in cinemas and/or for broadcasting on the Internet – minimum production costs approx. USD154,000 and minimum duration 20 seconds. At that, 10% of received cash rebate for such video must be reinvested in production of debut films by Ukrainian directors
  • the film meets a cultural test qualification
  • the foreign producer has entered into a production agreement for all or part of the film with a Ukrainian company that operates in the cinematographic industry and is a registered VAT payer.

The following expenses shall be qualified for cash rebate:

  • salaries and other fees of individuals (actors and film crew)
  • purchase of goods, services
  • rental of property
  • other costs directly related to the production of a film produced in Ukraine.

At the same time, the following costs cannot be qualified for cash rebate:

  • depreciation of fixed assets, other non-current tangible and intangible assets
  • the cost of negotiations
  • financial expenses (including interest on loans)
  • operating expenses not included in the cost of the film production
  • the cost of distribution of the film
  • travel expenses for travels outside of Ukraine
  • wages or any other types of remuneration paid to the actors and film crew who are non-residents of Ukraine, except for the expenses which are taxable in Ukraine

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