Incentives and Support for Foreign Filmmakers
Filmmaking is a challenging experience. Many financial factors need to be considered, especially when a shooting occurs in an unfamiliar country. Morocco is familiar with welcoming foreign filmmakers. Over the decades, the nation has invested significantly in the film industry and continues to do so. Its persistent support is also notable in its available VAT exemption and cash rebates for foreign filmmakers.
VAT EXEMPTION
A procedure to apply for a VAT exemption is possible for foreign production companies after obtaining a film permit from the Moroccan Cinema Center (MCC) and opening a local production bank account in convertible Dirham. The procedure involves filing a VAT-exempt demand with the Moroccan tax administration. Upon approval, you can request suppliers (showing them a copy of your granted exemption) to provide VAT-exempt invoices for eligible spending related to the filming project.
This simplified process eliminates the need to establish a local production entity in Morocco.
The VAT exemption certificate, granted by the Moroccan tax administration, covers purchases and rentals of goods and services without VAT, applicable to all invoices exceeding 5000Dhs (MAD).
It is to be noted that this administrative procedure takes some time, especially while you’re opening the bank account. You need several legalized documents (with apostille) from your country of origin translated (certified) into French. Foreseeing 2 to 3 months for the VAT exemption application process is advisable.
CASH REBATE FOR FOREIGN FILMMAKERS
One of the key incentives for shooting in Morocco is the attractive tax rebate offered to international productions. Filmmakers can benefit from a 30% uncapped cash rebate on eligible expenditures.
This financial incentive can significantly contribute to the effectiveness of the overall production budget; productions can be eligible after a minimum spend of 10 million Dhs (approx. $1M) and a minimum of 18 days of work in Morocco. If the production requires the construction of sets, this minimum duration includes the days devoted to constructing the sets. This kind of production support is subject to prior approval by the CCM.
– The CCM will ask that you pay a 5% deposit of the amount requested.
– Eligible expenses are capped at 90% of total expenditure.
– You must pay the total amount due to the Moroccan technicians, crew, and suppliers contracted by the production company.
– 6 months after you submit your accounts, you will receive your cash rebate payment.
– An experienced production accountant needs to accompany your project for bookkeeping purposes.
Your production firm will acquire the agreed-upon production support by wire transfer from the CCM. Within 180 days of a complete payment request, the whole amount will be transferred if the application is submitted before the legally specified deadline.
TAKE ADVANTAGE
The funding you can receive, and the exemptions offered exemplify Morocco’s dedication to developing its film industry. By clarifying these essential procedures, we hope your future project is one step closer to becoming a triumphant accomplishment.
