Regardless of being already acknowledged as one of many main European international locations relating to overseas investments, the Republic of Serbia continues its energetic coverage of attracting overseas traders. The direct consequence of the substantial increasement in investments in a plethora of various fields is the truth that there are even increasingly overseas pure and authorized individuals prepared to spend money on producing audiovisual works on the territory of the Republic of Serbia. The Republic of Serbia acknowledged this pattern and took measures to enhance the surroundings for investing in audiovisual works inside the so-called artistic industries (e.g. movies, quick movies, TV exhibits, documentaries, animated movies, and so forth. ‘’Trade’’).

Step one ahead was made when Serbian Authorities adopted Regulation on incentives to traders to supply audiovisual works within the Republic of Serbia (‘’Audiovisual Regulation’’) in 2015 offering the entire authorized background for granting and allocating the incentives for producers of audiovisual works. This authorized framework included required circumstances, procedures, entities/individuals entitled to request incentives, and so forth. Audiovisual Regulation is topic to amendments yearly and the one adopted in 2022 is presently in power – Audiovisual Regulation “Official Gazette of RS”, no. 132/2021 and 57/2022, and it prescribes circumstances for realizing proper to be granted with incentives earlier than fee compiled of consultants appointed by the Authorities of Republic of Serbia (‘’Fee’’). Required circumstances are differentiated based mostly upon the class of respective Trade’s half. Basic rule is that the incentives are granted in quantity of 25% of certified prices accepted on auditors’ report and if funding is above EUR 5.000.000,00, the quantity of incentives for granting is 30% of certified prices.

Particular circumstances are set inside every class, and for characteristic movie and TV movie to be granted with incentives, certified prices beneath the price range must be above EUR 300.000,00, and, for example, for the TV Present quantity of EUR 150,000.00 of certified prices per episode must be surpassed inside the price range. Different guidelines are offered beneath Audiovisual Regulation, and specifically, similar to that manufacturing must be carried out beneath the schedule outlined (manufacturing calendar) and if any deviations come up, the Fee must be notified in 7 following days. Any request not assembly the necessities of public funds shall be deemed as granted in following budgetary yr whereas the Republic of Serbia serves as a guarantor for incentives’ funding. Audiovisual Regulation supplies detailed process which is commenced with a request for granting incentives submitted earlier than the Fee by way of Centar Movie Serbia on floor of earlier public announcement (public name) carried out by the Ministry of Tradition and Data (‘’Ministry’’). Upon the request, the Fee is issuing choice on granting incentives, proposing the conclusion of the settlement to Ministry whereafter the settlement between the submitter and Ministry is concluded. Article 13 of Audiovisual Regulation regulates the settlement and by Paragraph 2 of stated Article is prescribed that the deadlines, rights and obligations are regulated in additional element beneath the settlement. Upon the conclusion of the settlement the submitter requests fee of granted incentives and Fee is issuing choice if circumstances are met for fee and thereafter the motivation funds are paid to the special-purpose account held at Treasury Administration on grounds of Ministry’s choice. The submitter who holds the account might switch the acquired incentive funds to investor in following 10 enterprise days.

When addressing the request for granting the incentives, submitter should take into consideration provisions set beneath the Rulebook on sorts and content material of rationalization of certified and non-qualified prices and type of request for allocation and fee of incentive funds to the investor to supply audiovisual works within the republic of Serbia (‘’Audiovisual Rulebook’’). In an effort to decide whether or not the submitter is permitted to request incentives, one should assess the provisions relating to certified prices. Certified prices, pursuant to Audiovisual Rulebook, are prices accepted as eligible prices for manufacturing of the audiovisual work, incurred and paid in republic of Serbia, shaped on foundation of licensed auditors’ assertion. When compiling the correct price range for manufacturing of the audiovisual work in Serbia, it’s required to think about the very goal and that means of certified prices. Audiovisual Rulebook stipulates that following prices could be thought of as certified:

• prices associated to the manufacturing of audiovisual works incurred and paid to authorized or pure individuals within the territory of the Republic of Serbia, that are associated to the bought items and companies, use of areas, fee of charges to members of the writer’s, performing and technical workforce who’re residents of the Republic of Serbia or foreigners who’ve a keep of not less than one yr within the territory of the Republic of Serbia, in accordance with the relevant regulation;
• prices incurred in reference to using items, i.e. renting movable and immovable property could also be acknowledged provided that the products (or movable and immovable property), owned by authorized or pure individuals from the territory of the Republic of Serbia.

Moreover, Article three of Audiovisual Rulebook stipulates that the certified prices are, specifically: i) charges and salaries for workforce (and accompanied tax); ii) prices associated to renting residences or lodges for overseas workforce members throughout their keep within the Republic of Serbia (and accompanied tax); iii) per diems or allowances for bills for meals, lodging and work and keep within the area or unexpected bills paid to native workforce members, in addition to foreigners – workforce members throughout their work within the Republic of Serbia, as much as a most of 100 euros per day, offered that their per diems and allowances had been paid within the Republic of Serbia with all associated taxes; iv) prices of buying copyrights from residents or authorized entities from the Republic of Serbia, offered that the request confirming the acquisition of rights is connected to the request; v) prices of procurement of products (Audiovisual Rulebook regulates in particulars); vi) all insurance coverage premiums if offered by a Serbian authorized entity-insurer; basic working prices incurred throughout the realization of the audiovisual work within the Republic of Serbia, in accordance with the manufacturing calendar and recording plan; vii) enterprise bills of a Serbian producer or co-producer, if invoiced for manufacturing for particular functions, offered that they’re within the operate of audiovisual work manufacturing, and at market costs.

However, Audiovisual Rulebook beneath the Article 6 defines ‘’partially certified prices’’ and supplies intimately what prices shall not be thought of as certified (similar to curiosity and fee financing prices; charges of overseas producers; deferred funds, revenue sharing, remaining funds; and so forth).

Which means that when drafting the price range previous to commencing manufacturing of the audiovisual work, the producer(s) have to assess each legally and economically the difficulty of certified prices, for the reason that very detailed definitions offered beneath the Audiovisual Regulation and Audiovisual Rulebook shall decide the quantity of incentives which must be granted, or, whether or not the incentives shall be granted in any respect. Due to this fact, it’s of nice significance that producers enter into tasks effectively ready and with duly skilled, each authorized and accounting assist of engaged individuals in an effort to understand their rights and attain targets in a greatest manner doable.

It was definitely a transparent intention of the Serbian laws to offer extra appropriate surroundings for producers of audiovisual work particularly having in thoughts the provisions set by Audiovisual Regulation and Rulebook, but in addition with the provisions of the Regulation on Investments which created place to begin in terms of state-aid and incentives. Furthermore, the love of the Serbian legislation in the direction of the overseas investments and audiovisual manufacturing might come at sight when assessing the provisions of Regulation on employment of overseas residents (‘’LEFC’’). Particularly, LEFC regulate the circumstances and procedures for the employment of overseas residents within the Republic of Serbia and different problems with concern to the employment of overseas residents thereto. Nonetheless, beneath the Article three paragraph 2 merchandise 9) of LEFC is stipulated that the circumstances for the employment of a overseas citizen established by this Regulation shall not apply to the employment of a overseas citizen who’s a member of a crew of authors or actors which are producing an audiovisual work within the territory of the republic of Serbia, in compliance with legislation. Due to this fact, these provisions serve the aim of permitting much better and environment friendly environment for overseas producers to return to Serbia and produce audiovisual works with all accompanied stimulation and enhancements with the state as a guarantor. Provisions as these very a lot facilitate in any other case laborious and complete means of manufacturing which, other than present phases in Trade (similar to idea and thought technology, budgeting, thought improvement, screenwriting & scriptwriting, hiring, recruiting forged and crew, scouting areas & manufacturing design and so forth.) contains many various facets of artistic, administration, accounting and authorized points which must be handled when pursuing the artistic targets inside the Trade.