Regulations for Funding Allocation APULIA INTERNATIONAL FILM FUND. PUBLIC APPLICATION NOTICE 2013 Apulia Film Commission

Transcription

1 Regulations for Funding Allocation APULIA INTERNATIONAL FILM FUND PUBLIC APPLICATION NOTICE 2013 Apulia Film Commission Modified and approved by the Board of Directors on 5 th December

2 SUMMARY Type of grant Public tender application for grants, valid up to the exhaustion of total funding budget of 500,000 Who can apply - foreign companies which hold a majority stake in the film project - Italian companies which hold a minority stake and have participated in at least one international co-production - Italian companies with an executive production contract for an international film project and which have acted as executive producer for at least one foreign audiovisual project Eligible projects - full-length feature and animation films (min. 75 mins) - TV films, also animation (min. 100 mins) - TV series or internet series, also animation (min. 100 mins) - documentaries or docu-fictions Application requirements - financial coverage of not less than 60% of the total budget at the time of funding application - for full-length feature films, TV films, TV series, documentaries or docufictions, a theatrical distribution contract or contract with a broadcaster from the majority/minority producer or executive producer s country of origin - for internet series, name of the website on which the series will be shown with related distribution plan Selection criteria The AFC Foundation Board assesses projects within 45 days and bases evaluation on a project s artistic and technical quality, assigning a score of up to a maximum of 100. Projects which are awarded a score of 70 or more will be considered for funding. Amount of funding and maximum grant available - for full-length feature or animation films, TV films, TV series and internet series (also animation), 15% of the budget spent in Apulia (net of VAT), up to a maximum of 200,000 - for documentaries and docu-fictions, 30% of the budget spent in Apulia (net of VAT), up to a maximum of 40,000 2

3 Accumulation with other AFC Foundation grants The grant is accumulable with all other types of AFC Foundation funding, except the Apulia National Film Fund. Introduction The Apulia Film Commission Foundation (AFC), set up under Regional Law 6/2004 art.7, is to allocate part of its annual resources for 2013 to foreign film productions or more specifically, to international audiovisual, film and TV productions with an executive Italian production company or with a minority Italian co-production company. This fund assigns direct financial support in the form of a free grant towards the production costs of audiovisual projects made in any media format and created for any distribution chain that are produced (partly or entirely) in Apulia. In accordance with a European Commission regulation passed on 26/9/2001, the total amount of grant available, taking into account all other forms of funding (including tax credit and tax shelter) may not exceed, in all cases, 50% of the total production budget. This limit may be increased to 80% for so-called difficult films or those with modest financial resources Who May Apply and Admissible Projects Funding is available for European and non-european audiovisual, film and TV production companies in one of the following categories: - foreign companies which hold a majority stake in the film project - Italian companies which hold a minority stake and have participated in at least one international co-production - Italian companies with an executive production contract for an international film project and which have acted as executive producer for at least one foreign audiovisual project presenting projects in the following categories: - full-length feature and animation films (min. 75 mins) - TV films, also animation (min. 100 mins) - TV series or internet series, also animation (min. 100 mins) 1 Complex films are those with over 70 points in the following categories; primary and secondary cinema projects, documentaries, shorts, projects produced by Italian state-recognised schools of cinema and films of cultural interest. Films with limited financial resources are cinema projects meeting EU regulations whose entire production costs do not exceed 1,500,000 and who meet the cultural eligibility requirements which allow them to obtain a maximum total funding of 1,200,000 from the Ministry of Cultural Affairs and other public bodies. 3

4 - documentaries or docu-fictions Applications for funding are accepted from commercial companies, co-operative production companies and foundations whose objective is film, TV or audiovisual production, also in the form of temporary business associations. 2. Funding Availability Grant allocation is subject to the availability of Film Fund resources at the time of application. The total endowment available for 2013 is 500,000 2 and each project may receive a maximum grant of - 200,000 for full-length feature films, TV films, TV series and internet series (also animation) - 40,000 for documentaries and docu-fictions To apply for funding, production companies must contact the Apulia Film Commission Foundation to organise a project presentation meeting at the Foundation offices (in cases where it is impossible to reach the Foundation offices, a conference call or web presentation must be arranged) before the application presentation date. Applications will not be considered from production companies which have not settled invoices pertaining to suppliers or outstanding payments or wages to be made to cast and crew for film projects produced previously in Apulia. Funding application for film projects must be made before the start of production. The grant is accumulable with the AFC Foundation s Apulia Development Film Fund and Apulia Hospitality Film Fund but not with the Apulia National Film Fund. Funding applications will be examined and a final decision reached by the Board of Directors of the AFC Foundation within forty five (45) days of receiving the application. 3. Selection criteria and allocation procedures Projects are only deemed admissible when they are presented by production companies which: 1. a. are in possession of a theatrical distribution contract and/or broadcasting contract from the country of origin of the majority/minority production company or executive producer (full length films, TV films, TV series and documentaries / docu-fictions); 2 The AFC Foundation reserves the right to increase total fund endowment when budget savings or surplus is achieved. 4

5 b. provide the name of the website on which the series will be shown with related distribution plan (internet series); 2. in all cases, present a financial budget plan, including all related contracts, which confirms a financial coverage of 60% of the total budget. On demonstration of the above pre-requisites, the AFC Foundation Board will evaluate the film projects on the basis of the two criteria set out below. Each part contributes towards the total as an overall percentage: A. Artistic quality of the story and screenplay with regard to different genres of film and use of Apulian artistic and creative talent (maximum 60 points); B. Technical quality; technical and technological merit of project features, consistency of artistic features with production/financial aspects and presence of Apulian professionals in production of the film (maximum 40 points). Projects obtaining a minimum score of 70 points out of 100 will be eligible for funding as follows: - 15% of the budget spent in Apulia (net of VAT) for full length feature films, TV films, TV series and internet series; - 30% of the budget spent in Apulia (net of VAT) for documentaries and docu-fictions. The AFC Foundation Board reserves the right to request more detailed analysis or additional information from applying production companies in cases where film project candidature is difficult to interpret. Public notice of the results of applications will be published on the website on the Apulia International Film Fund page. If an application is successful, the Apulia Film Commission will draw up a contractual agreement with the applicant in line with a Board resolution. Decisions made by the Board of Directors are final and irrevocable. 4. Allowable Expenses Expenses after VAT are only permitted when incurred in the following circumstances: - Production management, acting personnel, artistic personnel, production personnel, technical staff, skilled manual workers. 5

6 - Wardrobe, set design, studio stages and set building, real-life interior and exterior scenes, technical equipment or vehicle hire, transport, film, film processing, editing, insurance, general rental, catering, hotels. More specifically: - for Apulian travel agents, only the agency fee will be deemed allowable, not the entire cost of travel. - for rental companies: 1. suppliers with head offices in Apulia or with a local office registered with an Apulian Chamber of Commerce and at least one employee and who are owners of the rental property or goods, the entire cost of rental will be deemed allowable; 2. for subcontractors who rent out goods or property owned by third parties, only the payment to the Apulian supplier will be deemed allowable. For above the line costs incurred in Apulia, accountable costs are allowed up to a maximum of: - 100,000 (net of VAT) for full length feature films, TV films, TV series and internet series (also animation) - 40,000 (net of VAT) for documentaries and docu-fictions. These will be reimbursed by the AFC Foundation in line with the percentages set out in article 3 of this document. 5. Production Company Obligations As part of funding regulations, the applying production team and its beneficiaries, as well as the owners of the rights to the film, are obliged to: a. send the funding application for film projects before work has started on production; b. complete and deliver the film project to the AFC Foundation in DVD format together with a folder of all financial statements no more than 18 months after the decision to allocate the grant; failure to comply will result in the withdrawal of the grant; c. adhere to current regulations regarding social security contributions, medical assistance and workplace insurance for technical and artistic staff hired, including temporary staff with clear reference to the payment of all legally required contributions; 6

7 d. adhere to law no. 136 (passed on 13 August 2010), Extraordinary anti-mafia legislation and government authority for anti-mafia regulations (Official Gazzette no.196, 23 Aug 2010); e. send a signed copy of the contract, countersigned by a legal representative of the beneficiary production company; f. send by , before the start of production (during shooting any updated details must also be communicated): - the production order programme ; - a complete list of cast and crew (highlighting Apulian personnel); - a list of Apulian suppliers; - a list of locations to be used; g. during production, communicate daily production schedules by ; h. organise a press conference in Apulia before the start of or during filming with the participation of national and international newspaper journalists and with the presence of the director and/or leading actors as well as representatives of the AFC Foundation; i. permit the presence of an AFC representative at any time during production; j. permit video recording or photography during production, to be carried out by an AFC representative for purely documentary purposes; k. include the brand of the Apulia Film Commission in the opening credits of the film (or alternatively on the first frame of the closing credits) as well as on all the film s information, publicity and promotional documentation (press kits, etc.), with the wording produced with the support of the Apulia Film Commission and sending the Foundation a preview of the opening and closing credits in jpeg format before completing or duplicating the definitive version of the project; failure to comply will result in the withdrawal of the grant balance; l. allow the Apulia Film Commission the rights for the free use of the film as well as production and backstage photography exclusively for institutional use and institutional promotional purposes for the AFC Foundation and the Apulia region; m. provide the AFC, at no additional charge, with five DVD copies of the film and backstage footage (or promotional footage) and two CD copies of production photography; 7

8 n. in case of film participation in national or international film festivals, allow for the presence of an AFC representative at the film presentation press conference at the festival where it has been entered. The Apulia Film Commission will not consider projects which incite violence or encourage racism, political hatred, sexism or discrimination of any kind. 6. Allocation Procedures Funding is allocated upon receipt of a complete folder of financial statements and 5 DVD copies of the film (working versions are also acceptable but must include final version of credits with definitive position of AFC logo) as well as any other documentation stipulated in this document and in any additional, formally stipulated agreements. Due to possible modification or withdrawal under article 8, the balance invoice may be requested from the Foundation only at the end of a complete financial report audit. The grant is exempt from VAT as it is allocated by a non-profit institution. The grant is: - subject to a 4% withholding tax under clause 28, section 2 of Italian Presidential Decree no.600 (29/9/73). This levy, paid by the AFC Foundation in the form of a withholding agent, is to be shown on the balance invoice which the production team must send to the AFC Foundation, after which a bank transfer will be paid for the final balance of the allocated grant. - not subject to deductions where the beneficiary is a foreign production company with its head office in a state that has an agreement with Italy against double taxation on income. The invoice description must indicate the current agreement and its legal confirmation. In the absence of any bilateral agreement, or where no ratification law has been shown, a 30% source withholding tax will be applied under article 25.4 of Presidential Decree no. 600 (29/9/73). If the beneficiary is an Italian production company or is permanently based in Italy, in accordance with current legislation governing payments made by public administrations, the AFC Foundation is legally obliged to carry out checks though the Equitalia system and examine any contract over 10,000 for outstanding fiscal burdens with regard to the Italian tax authorities. In case of non-compliance, any debts which production companies have incurred with the tax authorities will be automatically distrained by Equitalia and paid by the AFC in the name and on behalf of the production creditor. 8

9 7. Application Procedures All applications for funding must be compiled in accordance with the official application form (attached to this document). Failure to comply will result in an invalid application. Applications must be signed and must also include: - a theatrical distribution contract and/or broadcasting contract from the country of origin of the majority/minority production company or exexcutive producer. For internet series, information must be provided on the name of the website on which the series will be shown, along with a related distribution plan; - a financial plan, together with related contracts, which certifies a minimum financial coverage of 60% of the total budget. If the financial plan presented by the applying production company shows a financial contribution carried out by the company within the minimum financial cover calculated for the film project, a bank certificate of funds must be attached (for the date of application) which demonstrates the effective availability of the amount shown by the production company: liquid assets, third party funds, loans to repay (i.e. mortgages); - a presentation of the Italian executive production company or co-production company and the foreign production company (a company profile of all parties involved in production); - executive production or minority co-production contract; - detailed estimated budget of general costs both above and below the line, only for those expenses to be incurred in Apulia; - certification of enrolment in the Official Register of Companies; - copy of the Certificate of Incorporation or Foundation Deed and copy of the statute, where required by law; - DVDs of most recent projects of production company and film director; - story, synopsis and screenplay; - filmography of the writer(s); - list of artistic and technical staff specifying local professionals already selected or to be appointed (except for extras and special appearances); - photocopy of ID document and tax code of the applying production company s legal representative; 9

10 - receipt of bank draft for 366 (including VAT) as reimbursement for AFC secretarial duties for feature films, TV films, TV series and internet series or 244 (including VAT) for documentaries and docu-fictions. An invoice will be issued for this payment. For this public application notice, production companies may only make a total of three project applications during the year. Companies may not apply for AFC funding for second or third projects before receiving a decision on a previous application. Applications may be sent: - by from a PEC address to the following address: @pec.apuliafilmcommission.it The subject should state the following text: Application for Apulia International Film Fund grant - by registered post or courier to the following address: Cineporti di Puglia/Bari c/o Fiera del Levante Lungomare Starita, Bari Italy Completed application folders should state the following text: Application for Apulia Inernational Film Fund grant. For applications sent by registered post or courier, production companies must provide the abovementioned material both on paper as well as in CD/DVD or USB pen-drive format. Failure to comply will result in an invalid application. A bank draft should be made out as follows: San Paolo Banco di Napoli Ag. 2 Bari IBAN: IT19D Cod. Bic/Swift IBSPITNA Reason for payment: Reimbursement of expenses for Apulia International Fund. 8. Financial Statements and Production Company Obligations In order to obtain payment and avoid incurring legal and administrative sanctions, beneficiaries must guarantee adherence to the following conditions: 10

11 - to comply with law no. 136 (passed on 13 August 2010), Extraordinary anti-mafia legislation and government authority for anti-mafia regulations (Official Gazzette no.196, 23 Aug 2010); - to compile and deliver an itemised financial breakdown of the project (on paper) limited to expenses incurred in Apulia, verified by a certified accountant or auditing company; - to submit certified copies of invoices, payslips and all other documentation relating to allowable expenses incurred in Apulia, after VAT. Each accounting document must include relative receipts. - to present (only if the beneficiary is an Italian production company or is permanently based in Italy): - a valid, certified copy of the DURC certificate (Certificate of national insurance contribution payments), also for companies that have no permanent employees if they are required to be insured both with INAIL and INPS, or a declaration, under Presidential Decree no. 445 (2000), that contribution and insurance requirements have been fulfilled; - a declaration, under Presidential Decree 445 (2000), which certifies the fulfilment of all conditions set out in Legislative Decree 83 (2012), art.13, covering contracts and sub-contracts for work and services, specifically the correct payment of VAT and deductions. In cases where production companies are also beneficiaries of the Apulia Hospitality Fund or Apulia Development Film Fund, relative invoices may be reported on only one of the three funds. During the phase of checking allowable expenses, if the AFC Foundation notes that any part of the declared expenses are inadmissible, these will be removed, thus proportionally reducing the total amount of expenses. If submitted documentation is wholly inadmissible, the grant will be annulled. 9. Annulment of grant and place of jurisdiction Grants will not be awarded where there is evidence of forgery of documentation or financial accounts or if false or deliberately imprecise statements have been made. Projects which are not completed will likewise result in the non-payment of any outstanding balance. It is agreed that the place of jurisdiction for all disputes arising out of, or in connection with, these regulations will be exclusively that of Bari. 11

12 On signing the application form, applicants agree to accept all conditions set out under the regulations in this document. Bari, 20th December 2012 Ref. no. 4927/12/U 12