Netherlands Film Production Incentive (Eng)

Incentive -

The Netherlands Film Production Incentive is a scheme for feature films, documentaries and animated films with an incentive of 30% of the eligible production cost. It is based on a cash rebate system.

The Netherlands Film Production Incentive aims at promoting a healthy film production environment in the Netherlands and is designed to reinforce the international competitive position of the Dutch film industry as a whole.

Status: Actueel

Who can apply?

An application can be filed by a production company based, for at least two years prior to the application, in the Netherlands or an EU-country and which is legally represented by a producer. The producer has, as majority producer, been responsible for the production of at least two film productions over the past seven years, which have been theatrically released in the Netherlands.

Which projects qualify?

The scheme is open to applications for feature films and feature-length animated films with a minimum production budget of at least € 1 million and to feature length documentaries with a production budget of at least € 250.000.

Budget and contribution

The amount of the grant is determined by the production costs that are both eligible and demonstrably and directly spent on parties that are subject to Dutch taxation, multiplied by 30%. The maximum award is 1 million euro per application. The maximum amount per year per applicant is 2 million euro. The budget in 2017 is capped at 19.25 million euro, of which at least 70% for international co-productions.

When can you expect payments?  

Possible advance up to 30% of the grant after Fund’s decision. Two interim payments upon request, after shoot and after picture lock, based on actual spend to up to 90% of the total grant. Last 10% after approval of all required documents of the project and determination by the Fund. Payment within eight weeks after submitting required documents.

When to apply

Application deadlines 2017: 7 February, 9 May, 29 August and 31 October.  

Conditions

A distribution guarantee for theatrical release in the Netherlands, or in case of a minority co-production, a distribution guarantee for a non-theatrical release in the Netherlands, if a theatrical release in the country of origin is guaranteed. At least 50% of the production budget should be in place upon application and only applications with a minimum of 75 points out of 200 points are taken into consideration. More information about the conditions can be found below in the General Outline and in the Regulations for Netherlands Film Production Incentive Scheme.

General outline

  • Applications on the basis of these regulations are made by a production company that at the time of the application for a minimum period of two years prior to the application has been based in the Netherlands, in a Member State of the European Union or a State that is a party to the Agreement in respect of the European Economic Area, or in Switzerland and during this period has operated demonstrably and consistently in the area of producing and exploitation of film productions aimed primarily at cinema release in the Netherlands, a Member State of the European Union or a State that is a party to the Agreement in respect of the European Economic Area, or in Switzerland.
  • The applicant is legally represented by a producer who, calculated from the moment of the application, has, as a majority producer been the main responsible party for the production of either (i) at least two film productions (reference films) in the Netherlands, a Member state of the European Union or a State that is a party to the Agreement in respect of the European Economic Area, or in Switzerland or (ii) one film production (reference film) in the aforementioned region, provided the producer in question has built a track record under the auspices of another production company that, in the Film Fund Board's opinion, is comparable to the stipulations under (i), for a period of seven calendar years before the date of application. At the time of the application the producer in question must have been a co-policymaker and (co-)shareholder of the applicant for a period of two years or more. The reference film(s) must have been released in a cinema in the Netherlands.
  • The scheme is open to applications for feature films, feature length documentaries and feature-length animated films that upon application have a distribution guarantee for theatrical release in the Netherlands. For minority co-productions a dispensation request for theatrical release in the Netherlands can be filed if  a theatrical release in the country of origin is guaranteed.  A detailed plan concerning the non-theatrical release in the Netherlands needs to be part of the request.
  • A minimum production budget of at least 1 million euros, and for feature length documentaries a production budget of at least 250.000 euro, is required. At least 50%of the total production budget has to be unconditionally and demonstrably committed by third parties upon application.
  • In order to ensure the cultural objectives of the measure, a test of qualifying characteristics will be conducted. In order to be eligible applications should meet at least three of the ten cultural criteria.
  • In each round eligible applications will be ranked on the basis of a points system. Only applications that reach a minimum of 75 points of the 200 points are taken into consideration, including points for at least 2 HoD (Heads of Department). The points system contains elements to determine the Impact of a film production on the audio visual infrastructure and film culture in the Netherlands, the (cross border) development of creative and technical talent and the promotion of the Netherlands as a production location. 
  • If the Netherlands Film Fund awards a grant, the subsequent film production should be completely financed within 6 months of the Fund’s decision. The film production should be released 24 months after conclusion of the Production Agreement.
  • The Netherlands Film Fund may decide to exempt the applicant from the obligation of commencement of principal photography - or in the case of an animated film, its realisation - until after the Funds decision. The applicant will have to demonstrate that the other financiers involved agree with any changes to the financing plan they have approved. A financial contribution cannot result in an increase of the budget or in the over-financing of a film production.
  • The production expenses that are taken into consideration for the calculation of the financial contribution must be directly related to the filmmaking process. Costs for activities from the ultimate date of application onwards are eligible. The Qualification Test indicates the specific costs that are not considered eligible.
  • The amount of the grant is determined by the production costs that are both eligible and demonstrably and directly spent on non-affiliated parties that are subject to Dutch taxation, multiplied by 30%. The maximum grant is 1 million euro per film production. A grant will only be awarded if there is a minimum of 100.000 euro eligible production spend in the Netherlands. The maximum amount per year per applicant is 2 million euro.
  • The available annual budget will be allocated across 4 application rounds. Applications that are rejected will be given a once-only opportunity to submit a new application in a subsequent application round.
  • A grant will be awarded conditionally. The final grant will only be determined and paid after verification of all incurred qualifying spend. The determined financial contribution cannot be higher than the amount of the awarded financial contribution. The recipient of the financial contribution is obliged to produce the film production for which a contribution is awarded in accordance with the characteristics as included in the application, amongst which the approved points system. A reduction in the number of points leads to withdrawal of the contribution.
  • An advance payment can be possible up to 30% of the financial contribution after conclusion of the Production Agreement between the applicant and the Film Fund. The advance payment has to be allocated for payment of Dutch production spend according to the cash flow scheme. Two interim payments can be requested: after the (main) shoot and after picture lock based on the actual spend of eligible production costs. Turnaround advance payment: 1 week after receiving the invoice. Turnaround interim payments: 4 to 6 weeks after receiving all required documents.
    The total of the advance payment and the interim payment(s) combined may not exceed 90% of the total financial contribution. The remaining 10% will be available after the determination decision and is subject to all required information in accordance to the Financial & Production Protocol Incentive and the corresponding Financial Accounting Manual.
  • After awarding a financial contribution, the Netherlands Film Fund is entitled to verify at any time during the production process whether the obligations attached to the financial contribution are being met. This verification also relates to any co-production companies or other third parties involved in the film production.