Dutch post-production companies send urgent letter to politicians

Call for economic stimulus measure for the film industry

Today, Dutch post-production and facilities companies sent an urgent letter to Minister Verhagen and State Secretary Zijlstra. They are calling on politicians to establish an economic stimulus measure (tax shelter) for the film industry. The Dutch film sector is currently under great pressure. To finance and realize Dutch films, film producers are increasingly—out of necessity—making use of foreign tax shelter schemes. According to an estimate by the Netherlands Film Fund, €13.7 million was spent abroad (particularly in Belgium) last year, and this amount will only increase in the coming years.

The signatories argue that the beneficial effect of an economic stimulus measure is twofold. Not only will the outflow of Dutch production funds abroad decrease, but the Netherlands will thereby become an internationally attractive (co-)production country itself, and capital will be attracted and employment generated. Belgium, France, and Germany have had such a highly successful scheme for years.

Mandatory expenses
To finance and realize Dutch films, Dutch film producers are increasingly making use of foreign tax shelter schemes. These tax shelters come with a spending obligation. Between 150% and 300% of the funds obtained through the tax shelter must be spent in the country of application. As a result, Dutch film producers are forced to spend millions of euros on production money abroad. Dutch post-production companies and professionals are no longer being hired and are going bankrupt. This has major consequences for the Dutch film industry. Expertise built up over the years is being lost. This affects not only the film sector but the entire audiovisual industry.
Dutch film is popular and market share is growing. The industry can only flourish when there is a solid creative and financial foundation domestically and a good facilities sector exists to support this industry.

The open letter is an initiative of Filmmore, signed and supported by companies and freelancers representing over 650 film professionals in the film industry, including: CINECO, AVP, STORM, Cam-a-lot, WarnierPosta, NCE (Netherlands Association of Cinema Editors), and NSC (Netherlands Society of Cinematographers). Messages of support are still coming in, and you can also participate via http://www.facebook.com/FilmmoreINT

Read the full letter here: http://herrie.com/images/stories/Oproep_TAXSHELTER.pdf



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