Film productions may be eligible for a tax rebate equal to 30% of the direct film production expenses incurred relating to Hungarian shooting in or outside of Hungary, if at least 80% of the direct production expenses can be considered “Hungarian direct film production expenses”.
The Hungarian direct film production expenses (which are the basis of the film tax rebate), include not only the value of the goods and services purchased from Hungarian suppliers, but also a certain part of the remuneration expenses of those foreign cast and crew members who are liable to pay tax in Hungary.
The eligible direct film production expenses which form the basis of the tax rebate also include the cost of royalties (up to 4% of the film production expenses accounted for in the Hungarian film production company), producer fees (up to 4% of the film production expenses accounted for in the Hungarian film production company), expenses of pre-production and post-production, advertising expenses (up to 2% of the film production expenses accounted for in the Hungarian film production company, capped at HUF 10 million), travel expenses (given that the place of departure or arrival is in Hungary) and financing expenses.
Film production companies may claim the 30% tax rebate either directly from sponsor companies who allocate part of their tax liability for this purpose, or from the deposit account of the Hungarian National Film Institute (NFI). The amount of the tax rebate approved after an expense control procedure conducted by NFI can be claimed from this account. The amount that can be collected in the deposit account for the indirect support of film productions in a year increases from HUF 33 billion (~85 million EUR/~96 million USD) to HUF 44 billion (~115 million EUR/~128 billion USD) as of 1 March 2022.