Expectation of an extension to the Cyprus Film Scheme

The Commissioner for State Aid Control, Ms Stella Michaelidou, has on 30th June 2021 published Decision no 4608 published in the Gazette of the Republic of Cyprus under which acting in accordance with the powers vested in her by the Law on the Control of the State Aid, to extend the Regulation of Financing Programs for the reinforcement of Film Productions (the “Αid Measure”) from 1/7/2021 to 31/12/2023. 

In accordance with the said decision the AidMeasure is compatible to the European Regulation EU 651/2014.

The Scheme for the Promotion of the Film Industry in the Republic of Cyprus, pursuant to the Regulation (ΕU) 651/2014 approved by the decision of the Council of Ministers on 27/09/2017 (proposal number 1433/2017), and amended by the decisions of the Council of Ministers dated 2.1.2019 and 31.1.2019 within the framework of which the system for cash rebate for Audiovisual Projects or tax credit certificate issuance as well as the tax deduction for investments in infrastructure and equipment and the VAT return is created ( the “Scheme”), ended in June 2021.

It remains to been when is the Scheme is to be extended so to follow the aforesaid decision of the Commissioner.

Despite the problems faced by the first production under the Scheme, an extension of the Scheme together with a more realistic approach to its provision by its administrators might give the Film Industry a chance to regain lost ground.