Going Global is Taxing

With the state of the global economy still in flux, film and television financing, an already complex area, is more difficult than ever for entertainment executives to navigate. State and country governments, many of which are still recovering from the global economic crisis, are limiting tax incentives and credit programs that have often been used to attract production to a jurisdiction. To help those in the entertainment industry better understand and manage these challenges, KPMG released today its sixth edition of “Film Financing and Television Programming: A Taxation Guide,” which focuses on the trends, barriers and rules that will be the greatest drivers within the international film and television production community.

Exotic Locations Are Not Possible

“Recent trends in tax laws and significant shifts in incentive and credit programs – critical factors in determining the success of a film or television project – have made it a much more challenging environment for decision makers in the industry who are seeking the most viable locations for production,” said Anthony Castellanos, Global Accounts Lead Partner and Industry Leader at KPMG. “Many are turning to untraditional areas – like emerging markets – to find attractive new opportunities.”

He adds, “Although there can be benefits to moving locations internationally, there are also many tax implications associated with doing business in another country. It’s critical that entertainment executives – in addition to thinking about how they’re actually going to obtain financing for a project – also consider the potential tax consequences based on where they decide to produce or film.”

Tax and Financial Guide for Producers

KPMG’s Film and Television Tax Guide highlights 35 key countries with a stake in the film and television production industry, providing a description of commonly used financing structures as well as the commercial and tax implications for conducting business within each location.

The countries referenced in the guide include: Australia, Austria, Belgium, Brazil, Canada, China and Hong Kong SAR, Colombia, Czech Republic, Fiji, France, Germany, Greece, Hungary, Iceland, India, Indonesia, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, The Netherlands, New Zealand, Norway, Philippines, Poland, Romania, Singapore, South Africa, South Korea, Sweden, Thailand, United Kingdom and United States.

For more information about KPMG’s Film and Television Tax Guide or to download the full sixth edition, please visit the KPMG website.