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Number of films made in Hungary more than doubles in 2006

Analysis

The National Film Office (NFI) has registered a total of 233 films made in Hungary so far in 2006, compared to 115 in all of 2005, while the amount of money spent in the production of these films is expected to rise by more than Ft 2.5 billion (€9.72 million) during the current year to exceed Ft 25 billion, according to the Tuesday issue of the economic daily Napi Gazdaság.

According to NFI director Miklós Taba, the amount of money spent on making films in Hungary is expected to exceed Ft 25 billion in 2006, compared to Ft 22.34 billion in 2005, while his office has issued Ft 2.62 billion in certificates necessary to apply for government tax breaks for production costs of films made in Hungary so far this year, compared to Ft 2.82 billion in such certificates for all of last year.
The registered number of Hungarian-produced films made in Hungary has increased from a preliminary number of 85 in 2005 to 210 as of November 15, 2006, and their combined budget almost doubled to Ft 9.95 billion according to NFI figures. The number of foreign film productions has risen from 12 last year to 13 so far this year but their spending in Hungary fell from Ft 10.95 billion in 2005 to Ft 6.61 billion. The number of Hungarian-foreign co-productions has fallen from 16 to 10, and the money spent in Hungary fell from Ft 5.17 billion to Ft 3.34 billion.
Napi Gazdaság attributes this year's vast increase in the number of Hungarian film productions to state subsidies for films related to the 1956 Hungarian revolution and to renewed support of the National Radio and Television Board (ORTT) for made-for-TV productions. Under the legislation in force since April 2004, businesses supporting film production with cash subsidies -essentially, donations- may deduct 100% of this subsidy from their tax base as well as from their payable taxes. The tax break has some conditions: investors may write off no more than 70% of their payable taxes, and they may not deduct any more than 20% of the total production costs of any one film; but the write-off is still extraordinary, providing investors with a return, in the form of a deduction, of Ft 116 on every Ft 100. On November 20, the Finance Ministry said that corporate contributions to film-production companies will not be considered liable to gift taxes. The tax write-offs gave a large boost to film production in Hungary with money spent increasing more than three-fold from Ft 7.45 billion in 2004.

 

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