In a letter dated 4 October 2024, the European Commission informed Hungary that it has approved Hungary’s application and extended the current film rebate scheme for another 5 years, until 31 December 2030. Under the former decision of the Commission, the rebate scheme would have expired on 31 December 2024.
The impressive growth and development of the Hungarian film industry over the past two decades is attributable to the Hungarian Motion Picture Act adopted in 2004, and to the film support system laid down in the Act. Accordingly, if certain conditions are met, film production companies producing films in Hungary enjoy an automatic indirect support, the rate of which is 30 percent since June 2018.
The Hungarian film rebate scheme is regularly reviewed and approved by the European Commission for the next cycle. The last review took place in 2018, when the Commission decided that the current rebate system should be applicable until 31 December 2024.
The National Film Institute started the rebate scheme extension process and submitted the necessary documents last December. Since then, the European Commission has requested additional information in three rounds before making a decision. As a professional partner of the National Film Institute, Andersen Hungary has been actively involved in the film rebate scheme extension process and in responding to the requests for additional information.