25% Cash Rebate
The production incentive, a 25% cash rebate in Finland is open for applications. The incentive compensates up to 25% of the actual costs incurred in Finland that have been used in pre-production, production or post-production.
- Budget 10 million euros
- Continuous call for applications, a decision in 40 days
- First come – first served, the applications are processed and approved in the order in which they have been received
- Payment approx. 3 weeks after the cost statement
- No requirements for foreign companies to register in Finland
Parties and projects eligible for rebate:
- Finnish and international production companies, production service companies or other companies in the audiovisual sector that have participated in the production by carrying out their agreed part of the production.
- Fictional feature films
- Scripted fiction series
- Animation productions
(Parties not eligible for rebate: television companies or companies in which a television company has a shareholding of at least 15%, state, municipal or parish officials or agencies, state majority-owned companies, or any comparable organizations or agencies. The cash rebate does not apply to advertising productions, music videos, TV series with an ongoing plot and lifestyle or reality TV programmes.)
Conditions for the rebate
- The production must base on cultural values and must include artistic and creative work as described in Finnish government’s decree on cash rebate for audiovisual works.
- Distribution agreement for at least one platform or territory.
- Total production budget and consumption generated by the production in Finland:
- A Finnish co-producer is involved in the production, from which the co-producer gains intellectual property rights
- AND/OR a Finnish production coordinator is involved in the production. The monetary transactions related to the cash rebate are handled either by a Finnish co-producer or a Finnish production coordinator who has a business ID.
- Finnish artistic or otherwise creative special expertise is used in the production, e.g. narration, direction, acting, production design, storyboard writing, effects, color grading, animation character design, composition, music, sound design, product design, fashion design
- AND/OR the work portrays Finnish locations, such as landscape or architecture, or it contains a recognizable portrayal of a Finnish way of life or Finnish know-how.
- If the Finnish co-producer pays for the costs incurred in Finland, the co-producer may be the applicant or beneficiary of the cash rebate.
- When the rebate beneficiary is an international company, Tekes requires a Finnish production coordinator to be used. The coordinator acquires services for the beneficiary, pays any subcontracting invoices, and charges the main producer for the subcontracting invoices and their own fees. The coordinator draws up and maintains cost specifications in a way instructed by Tekes.
- The beneficiary and the coordinator shall agree on the terms of payment and the payment schedule together.
- The coordinator supplies the beneficiary with a cost specification and an auditor’s report. The beneficiary shall report the expenses to Tekes.
- Goods and services purchased and the rental of production-related equipment and premises from companies that are liable to pay taxes to Finland.
- Salaries paid to employees that are liable to pay taxes to Finland.
- Other costs (flat rate) max 20% of the total amount of salaries and purchases. Other costs may include indirect employee costs, producer’s fees and overhead costs. These do not have to be itemised.
- Costs incurred in Finland due to making the production more accessible for people with disabilities.
How do I apply?
It’s recommended to contact Tekes already when you are preparing plans for a production in Finland. Tekes recommends that you facilitate the discussion by sending a summary of your project in advance. The application must be submitted in the Online Service provided by Tekes. A Finnish business ID is needed in application phase meaning that in case of foreign company the Finnish production coordinator company submits the application on behalf of the foreign company.
- A conditional funding decision may be granted when 50% of the total funding of the production has been obtained.
- The conditional funding decision is valid for 6 months, during which the progress of the production will be monitored in accordance with the schedule mentioned in the funding decision.
- The funding decision will come into effect when all the conditions set by Tekes for the conditional funding decision have been fulfilled. As a general rule, this requires that 80% of the funding has been secured.
Reporting and payment
- Tekes will pay the rebate retroactively for the actual costs and against the auditor’s report.
- If needed, the rebate can be paid periodically during the production.
- The target time for the payment is 21 days after Tekes has received the statement of accounts and related appendices.
The production incentive system is managed by Tekes, the Finnish Funding Agency for Innovation.
We’ll help you with applying, don’t hesitate to contact us!
Additional information from Tekes:
General terms and conditions
Merja Salonen, Product Manager
Tel. +358 (0)2950 55974
Tel. +358 (0)2950 55221
Tel. +358 (0)2950 55273