CASH REBATE LAW 1556
Law 1556 of 2012 – Cash rebate 40% – 20%
Colombia offers a cash rebate or cash reimbursement for films partially or totally produced in Colombia (long feature films, TV movies with a broadcast of up to 2 episodes, documentaries and animation). 40% for “film services” (services related to audio-visual pre-production, production or post-production including artistic and technical services) and 20% for “film logistics services” (those that are provided for hotel, catering, and transportation) of the amount spent in the country. The cash rebate applies to services provided by Colombian entities or persons that are domiciled or residing in the country. It will be paid with resources of the Colombia Film Fund (FFC for its Spanish acronym), a financing instrument or account created in 2012 with funds from the General National Budget.
The project in question shall entail expenditures in film services or film logistics services of approximately USD 470,000. (TRM 3.000 COP)
The project shall be submitted by its producer, a legal person; that is to say, a company or entity with legal authority to operate.
The project will be evaluated by the Colombia Film Promotion Committee (CPFC for its Spanish acronym) according to the purpose of Law 1556: To develop Colombia’s film industry, as well as promote tourism and the country’s image.
The project shall entail total or partial filming in Colombia. As for animated work, this item refers to carrying out production work in the country.
The producer shall sign a contract stipulating the obligations, conditions, and requirements for the reimbursement to be given and the amount thereof.
Film services for non-national projects shall be contracted through one or several Colombian film services companies (previously registered at the Film Office of the Ministry of Culture).
The funds for use in services shall be administered by a trust established in Colombia, through an administration trust or standalone trust.
Lastly, in order for the reimbursement to be disbursed, there must be approval by an auditing company established in Colombia, which shall also be engaged by the producer. The expert opinion, certificate or report issued by the auditing company shall be sent directly to the administering entity.