MECHANISMS
FOR FINANCING
AUDIOVISUAL
CONTENT IN LATIN
AMERICA 2
MECANISMOS
ACTUALES DE
FINANCIACIN
DE CONTENIDOS
AUDIOVISUALES EN
LATINOAMRICA 2
CURRENT
MECHANISMS
MECANISMOS
ACTUALES DE
FOR FINANCING
FINANCIACIN AUDIOVISUAL
DE CONTENIDOS
AUDIOVISUALES EN
CONTENT IN
LATINOAMRICA 2 LATIN AMERICA 2
Steve Solot
Rio de Janeiro
LATC
2014
Publisher | Editor LATC
Latin American Training Center
Centro Latino-Americano de Treinamento e Assessoria Audiovisual
Rua Alm. Saddock de S, 10/ 302
Rio de Janeiro, RJ - Brasil
CEP 22411-040
Tel.: 55 21 2247-4505
contactlatc@gmail.com
www.latamtrainingcenter.com
C976
Current mechanisms for financing audiovisual content in latin america 2 =
Mecanismos actuales de financiacin de contenidos audiovisuales en latino-
amrica 2 / organizado por Steve Solot. - 1a. edio bilngue. - Rio de Janei-
ro: LATC, 2014.
306 p. 23 cm
ISBN 978-85-62268-10-6
1. Legislao - Indstria audiovisual - Amrica Latina. 2. Financiamento de
projeto. 3. Ajuda governamental indstria cinematogrfica. I. Solot, Steve.
II. Ttulo.
CDD: 344.879 143 08
CDU: 347.7 + 791 (7/8=134)
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Table of Contents| ndice
V
VI Current mechanisms for financing audiovisual content in latin america 2
ARGENTINA
Orlando Daniel Pulvirenti
Legislation to Promote the Argentine Film Industry.................................................. 1
Una legislacin destinada a fomentar el cine argentino............................................ 11
BOLIVIA
Fernando Martnez
The Bolivian Cinema is still a Matter of Faith ...........................................................23
El cine boliviano an es cuestin de fe...................................................................... 31
BRASIL
Fbio de S Cesnik & Roberto Drago Pelosi Juc
Tax incentives for audiovisual production in Brazil...................................................39
Incentivos Fiscales al Audiovisual en Brasil................................................................ 49
CHILE
Andrs E. Young
Public Sources of Financing for Audiovisual Productions.......................................61
Fuentes Pblicas de Financiacin para la Produccin Audiovisual........................ 69
COLOMBIA
Cristina I. Echeverri Sarmiento
Current Financing Mechanisms Available in Colombia for the
Production of Audiovisual Content .............................................................................77
Mecanismos Actuales de Financiacin disponibles en Colombia para la
Produccin de Contenidos Audiovisuales................................................................... 89
CUBA
Lilianne Rodrguez
Financing Mechanisms for Audiovisual Productions in Cuba..............................101
Mecanismos de Financiacin de las Producciones Audiovisuales en Cuba.......107
Table of Contents | ndice VII
ECUADOR
JorgeLuisSerrano.
Institutions, Laws, Market, Support and Development Mechanisms for
Ecuadorian Film Production, Other Incentives and Related Areas......................115
Instituciones, Leyes, Mercado, Mecanismos de Apoyo y Fomento de la
Produccin Cinematogrfica Nacional y Otros Incentivos y Espacios
Vinculados........................................................................................................................123
MEXICO
Ramn Orendin Urrutia
Sources of Financing and Public and Private Funds for the Production
of Content in Audiovisual Formats: Mexico ............................................................131
Fuentes de Financiacin y Fondos Pblicos y Privados para la produccin
de Formatos de Contenido Audiovisual: Mxico.....................................................143
PERU
Hugo Bravo de Rueda I. & Javier Gutierrez Gamio
Economic Incentives and Support Acknowledged in Peruvian
Legislation for the Production of Works for the Cinema and Television ...........155
Apoyo e Incentivos Econmicos reconocidos en la legislacin peruana
para la Produccin de Obras Cinematogrficas y Televisivas................................163
PUERTO RICO
Luis M. Pellot-Gonzlez and Janira Beltrn-Sells
Current mechanisms for financing audiovisual content in Puerto Rico..............171
Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en
Puerto Rico.......................................................................................................................179
REPUBLICA DOMINICAN A
Jaime R. Angeles
Opportunities for audiovisual producers in the Dominican Republic................189
Oportunidades existentes en Repblica Dominicana para los
productores audiovisuales.............................................................................................199
URUGUAY
Manuel Gonzalo Suarez Charlone
Current Funds for the Financing and Promotion of Cinematographic
and Audiovisual Activities............................................................................................ 211
VIII Current mechanisms for financing audiovisual content in latin america 2
VENEZUELA
Carlos Julio Fernndez Vega & Pedro Miguel Dolnyi
Current Mechanisms for Funding Audiovisual Content in Venezuela ...............231
Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en
Venezuela..........................................................................................................................241
By Steve Solot
President
Latin American Training Center-LATC
In this new updated publication, we have once again invited a select group of le-
gal and technical experts from each country to prepare a chapter on the principal
mechanisms of financing audiovisual content. Also included in each chapter are
references to specific legislation of each country for further research and review.
As usual, neither LATC nor any of the co-sponsors of the publication are re-
sponsible for errors and omissions of information or content in any of the chap-
ters, which are the sole responsibility of the respective authors. Due to frequent
changes in legislation, the reader is cautioned to check with local sources and/or
the author before taking any investment or production decisions.
However, this edition differs from the previous one in two important ways. Giv-
en the rapid development and implementation of new technology to the audio-
visual industry with its multiple formats, delivery channels and platforms, each
author has included specific reference to their corresponding funding mecha-
nisms, where they exist. In addition, as opposed to the previous Spanish-only
edition, based on numerous requests, the present volume is provided in a fully
bilingual, Spanish-English format, to offer increased access to broader audiences.
Qualified technical legal translators have been employed to ensure the accuracy
of the translations which also have been submitted to the original authors for
approval prior to publication. As with the previous edition, the publication con-
tinues to be available in a free PDF format which may be downloaded from the
LATC website.
It is our hope that this volume, as with the previous LATC publications, will
serve as a significant source of information for policy makers, legislators, inves-
tors, attorneys, producers, distributors and other professionals in the audiovisual
industry to promote the common objective to expand the Latin American au-
diovisual content industry in a global context.
I wish to take this opportunity to thank each author for his or her valuable contri-
bution and time and effort expended to make this publication a reality. We also
extend our gratitude to Fernanda Lima, LATC Coordinator of Special Projects
for her long hours dedicated to the consolidation and review of the materials.
Esta es la quinta publicacin del LATC, tras Incentivos fiscales para la pro-
duccin y coproduccin audiovisual en Iberoamrica, Canad y EE.UU.
(2009), Mecanismos actuales de financiacin de contenidos audiovisuales
en Latinoamrica (2011), The Brazilian Audiovisual Industry: An Explo-
sion of Creativity and Opportunities for Partnerships (2012) y Latin Ame-
rican Cinema Today: The Directors Perspective (2013).
XI
XII Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
Es nuestra esperanza que este volumen, al igual que con las anteriores pu-
blicaciones del LATC, servir como una fuente importante de informacin
para los formuladores de polticas, legisladores, inversionistas, abogados, pro-
ductores, distribuidores y otros profesionales de la industria audiovisual para
Introduccin XIII
Deseo aprovechar esta oportunidad para agradecer a cada autor por su valioso
aporte y tiempo y esfuerzo realizado para que esta publicacin sea una reali-
dad. Tambin extendemos nuestro agradecimiento a Fernanda Lima, coordi-
nadora de proyectos especiales de LATC durante sus largas horas dedicadas a
la consolidacin y revisin de los materiales.
By Oliver Kwon
Founder and CEO
Americas Film Conservancy - AFC
XV
XVI Current mechanisms for financing audiovisual content in latin america 2
often lost as commercial and political interests tend to overshadow cultural ini-
tiatives. Promising filmmakers are also ignored as many Latin American produc-
tion teams remain under-promoted and underfinanced. AFC realizes the need
for institutional aid in protecting and promoting Latin American film and works
to implement programs to achieve these goals.
The present publication offers AFC an opportunity to participate in a monu-
mental effort to consolidate practical information in a single volume, as a source
of vital information for filmmakers and other professionals in the Latin Ameri-
can audiovisual industry to promote their respective industries with up-to-date
legal and legislative information on Current Financing Mechanisms for Audiovi-
sual Content in Latin America.
AFC is honored to be a part of this unique project and hopes to support future
initiatives which go beyond the protection and preservation of Latin Americas
film heritage, to effectively promote the regions audiovisual content production
in a global context.
By Susan Bodine
Partner
Cowan DeBaets Abrahams & Sheppard LLP
XIX
XX Current mechanisms for financing audiovisual content in latin america 2
XXI
XXII Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
W e, at the Cesnik, Quintino & Salinas law firm, received the invitation
to participate in yet another book organized by LATC and eagerly
confirmed our support, just minutes after receiving the proposal. There is a
very simple reason for such enthusiasm: We consider all initiatives aimed at
informing, explaining and establishing connections between the Brazilian and
the international audiovisual market to be strategic for the development of our
entertainment industry. Enlightenment and information about audiovisual
incentives and development mechanisms of other countries in Latin America
are essential to encourage partnerships between Brazilian and Latin American
companies. They enable such companies to work together in a more organized
manner, maximizing not only the financing of content, but also the economic
results of an audiovisual product. It is through publications such as the present
volume that local producers come to comprehend the models of other countries
and think in terms of multinational formats, and foreigners come to understand
how to connect their work with Brazil. And we firmly believe in the products
resulting from this process and exchange.
Since the founding of our firm in 1998, our goal has been the professionaliza-
tion of the entertainment sector in Brazil, covering all areas of the law, but with
XXIII
XXIV Current mechanisms for financing audiovisual content in latin america 2
XXV
XXVI Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
propusimos a actuar en todas las reas del Derecho pero con enfoque priori-
tario en las operaciones del entretenimiento. Somos un equipo especializado,
altamente calificado, con ms de 40 profesionales distribuidos entre So Pau-
lo, Ro de Janeiro y Brasilia que ha recibido el reconocimiento de excelencia
de las principales guas internacionales de la abogaca (Chambers&Partners,
Legal 500 etc.), laureado como TOP en este segmento en Brasil.
Estamos seguros que iniciativas como esta publicacin contribuyen para fun-
dar las bases de una industria que crece a pasos largos en Brasil. Cuenten
siempre con nosotros!
By Marco Altberg
President
Brazilian Association of Independent Television Producers (ABPITV)
XXVII
XXVIII Current mechanisms for financing audiovisual content in latin america 2
XXIX
XXX Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
1. Introduction
1
2 Current mechanisms for financing audiovisual content in latin america 2
3. Cinematography Incentives
requirement.
4 Current mechanisms for financing audiovisual content in latin america 2
The assessment of the script and the project as a whole prior to starting on its
production has taken shape as a way for the producer to know whether it will be
possible to obtain government collaboration right from the start, with no need
to wait until the film is completed. (Resolution N 2,202/2011/INCAA)2.
3.5. Credits
Resolution N 2,203/2011/INCAA establishes the mechanism and the require-
ments that must be met in order to take out loans at preferential rates from INCAA.
In addition to extremely low interest rates charged by INCAA on the loans that it
grants, a twelve months grace period (24 months for documentaries) is established
for repayment from the date of the first disbursement received by the beneficiary,
on the understanding that the producer has completed the project within this pe-
riod and has released the film, generating revenues that underwrite these repay-
ments. Furthermore, these deadlines may be extended for two additional, succes-
sive terms, the first ordinary and the second extraordinary, totaling a maximum of
12 months (Articles 18, 35 and following of Resolution N 2,203/2011/INCAA).
The loans yield a compensatory interest due on the outstanding balances payable
on a quarterly basis, with the maximum interest rate being a nominal 4% per
year. This rate is far lower than those currently charged for personal or consumer
2 The amounts and conditions may be consulted online at the following website: www.incaa.gov.ar
3 Decree N 1,527/2012 currently establishes the following allocations: Article 6 The following percentages
are established for subsidies intended for reinvestment in the produccin of a new film or the purchase of
industrial equipment: a) 5% of the settled subsidy up to an amount of $ 2,500.000 Argentine pesos. b) 10% of
the settled subsidy exceeding the amount of $ 2,500.000 Argentine pesos and up to an amount of $ 3,500.000
Argentine pesos. c) 20% of the settled subsidy exceeding the amount of $ 3,500.000 Argentine pesos.
Argentina 5
loans in Argentina, where rates vary among commercial banks from around 33%
(minimum) to 43% (maximum). In terms of the total financial cost of these enti-
ties, this falls within an average range of 55% for the minimum rate and 75% for
the highest rates.
and short features, set by the Argentine Executive Branch in the wording of this Law
and other regulations for exhibition as established by INCAA.
This Institute has a two-tiered regulation: 1. On the one hand, it requires movie
theaters to screen a minimum number of Argentine films each quarter, under
threat of pecuniary penalties (fines) for non-compliance (See Resolutions N
1,076/2012/INCAA and N 26/2009/INCAA), and 2. Recently-promulgated
Resolution N 2,114/2011/INCAA establishes a gradual price system for issu-
ing film qualification certificates, which increases as the number of screens on
which the films will be shown is established. These tariff rates vary by region, in
order to establish an even balance between metropolitan regions and rural areas.
On the other hand, in order to improve the performance of Argentine films in
movie theaters, and ensure that they are exhibited for at least two weeks, movie
theater insurance has been introduced that offers exhibitors reimbursement for
any losses they may suffer if a film fails to attract a minimum number of specta-
tors (Resolutions N 1,963/2009/INCAA and 1,076/2012/INCAA).
a) Advance subsidies
The initial system ushered in by Decree-Law N 17,741 establishes as a produc-
tion support mechanism a system that corresponds to Electronic Media Subsidies.
When originally introduced, this subsidy was intended for allocation to complet-
ed films. However, in exceptional cases, it gradually was accepted that anyone with
a favorable initial rating who complied with all the other requirements established
by the Law could request an advance as an exception, apart from the money that
would be awarded subsequent to completion of the film.
Unlike taking out a loan through either the Institution or from a bank, this pro-
vision does not give rise to interest, nor does it require any collateral, endorse-
ments or other conditions normally needed to take loans. Nevertheless, the
following requirements must be met: 1) a Classification Resolution must have
been issued for the project rating it of interest to the Entity; 2) Conclusive proof
that shooting has been completed for the film in question must be presented;
and 3) Evidence that the amounts effectively paid out for the film in question
must reach a value exceeding the amount requested.
c) Assignments
Assignments allow the transfer of economic rights, opening up the possibility for
film producers to use them as a means of payment, as regulated in Articles 1434
to 1484 of the Argentine Civil Law Code. This type of assignment agreement has
been and is used extensively in cinematographic and audiovisual projects as it has
allowed the materialization of an indirect financing system for producers, in actual
practice. Consequently, the film producer (called the assignor) has the possibility
of assigning and transferring rights to third parties (called assignees, such as service
providers, for example), through agreements underwritten by the subsidies to be
received by INCAA. This Institute registers assignments of rights that arise during
the film production process (see Resolution N 2203/2011/INCAA).
8 Current mechanisms for financing audiovisual content in latin america 2
7. Conclusions
In Argentina, cultural expressions, including cinematography, are rated as rights by
their producers and their recipients, warranting not only safeguarding by the State,
but also active participation in their development and protection. This commit-
ment has been expressed for many decades, and has firmed up to an even greater
extent during the past few years, through inclusionary plans that have fostered do-
mestic audiovisual output, offered free of charge to millions of Argentineans. The
cinematography sector receives State assistance from the start-up of production
through to the end of the circuit, not only for exhibiting on movie theater screens,
but also for broadcasting on television.
The system described above originates in the approval of projects that set up
committees whose highly qualified members come from the private sector, able
to take decisions with no government intervention or censorship, nor recom-
mendations of any type whatsoever. At this stage, the assistance is allocated in
compliance with project progress and its nature, by means of direct subsidies and
special credits, through a dynamic whose purpose is to ensure that each start-up
project culminates with the release of a film.
The outcome of these policies is apparent in the yearbook published by INCAA,
reflecting an extraordinary upsurge in the number of cinematographic produc-
tions made over the past few years, with rising box-office revenues. Intervention
in television content is more recent, conducted through mechanisms striving to
encourage diverse, multicultural federal productions, expressed through good
quality products with ample possibilities of generating local jobs as well as added
value through exports to other markets.
Argentina
1. Introduccin.
11
12 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
3. Incentivos a la Cinematografa.
3.1. Sistema de fomento.
El Decreto Ley 17.741 establece como condicin para acordar los beneficios
all estipulados a la produccin de pelculas, que la misma sea considerada
nacional. Renen esta condicin, aquellas pelculas que hayan sido produci-
das por personas fsicas con domicilio legal en la Repblica o por personas
jurdicas argentinas, siempre y cuando se verifiquen los siguientes supuestos:
a) ser habladas en idioma castellano; b) ser realizadas por equipos artsticos
y tcnicos integrados por personas de nacionalidad argentina o extranjeros
domiciliados en el pas; c) haberse rodado y procesado en el pas; d) paso de
TREINTA Y CINCO (35) milmetros o mayores1; e) no contener publicidad
comercial. Cabe destacar que la norma considera pelculas de largometraje a
las que tengan un tiempo de proyeccin superior a sesenta (60) minutos y de
cortometraje a las que no lo excedan. Tambin ingresan en estas categoras las
coproducciones internacionales reconocidas como tales y las que reciban las
excepciones a los incisos a), b) y c); as declarado por el INCAA.
Tienen un inters especial para el Estado las que estn destinadas a la in-
fancia; las que contengan relevantes valores morales, sociales, educativos o
nacionales; y aquellas que con un contenido temtico de inters suficiente,
su resolucin alcance indudable jerarqua artstica.
1 Por va de excepcin suele considerarse que los largometrajes terminados en medios digitales, en calidades
de 2K o 4K cumplen con tal recaudo.
14 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
2 Los montos y las condiciones pueden ser consultados on line en la pgina www.incaa.gov.ar
3 Actualmente el Decreto 1527/2012, establece los siguientes importes: Art. 6 Fjanse los siguientes por-
centajes del subsidio que se destinarn a la reinversin para la produccin de una nueva pelcula o la compra
de equipamiento industrial: a) CINCO POR CIENTO (5%) sobre el subsidio liquidado hasta alcanzar la
suma de PESOS DOS MILLONES QUINIENTOS MIL ($ 2.500.000). b) DIEZ POR CIENTO (10%) sobre el
subsidio liquidado que exceda la suma de PESOS DOS MILLONES QUINIENTOS MIL ($ 2.500.000) y hasta
alcanzar la suma de PESOS TRES MILLONES QUINIENTOS MIL ($ 3.500.000). c) VEINTE POR CIENTO
(20%) sobre el subsidio liquidado que exceda la suma de PESOS TRES MILLONES QUINIENTOS MIL ($
3.500.000).
Argentina 15
3.5. Crditos.
La Resolucin N 2203/2011/INCAA dispone el mecanismo y los requisitos
a cumplir para poder adquirir un crdito a tasas preferenciales otorgado por
el INCAA. En adicin a las nfimas tasas de inters que percibe el INCAA
por los crditos que acuerda, se establece un plazo de espera para la devolu-
cin del crdito que comienza a computarse desde los doce (12) meses (vein-
ticuatro (24) meses en el supuesto de los Documentales) desde la fecha del
primer desembolso que reciba el beneficiario (Se entiende que en ese plazo el
Productor habr de terminar su proyecto y habr estrenado generando ingre-
sos que permitan el repago). Adems, dichos plazos pueden ser prorrogados
mediante dos sucesivas prrrogas adicionales, la primera ordinaria y la segun-
da extraordinaria, totalizando un mximo de doce (12) meses (artculos 18,
35 ccds. y ss. de la Resolucin N 2203/2011/INCAA).
Los prstamos devengan un inters compensatorio vencido sobre saldos pa-
gadero por perodos trimestrales, siendo dicha tasa de inters mxima del
cuatro (4%) nominal anual; importe muy por debajo de los intereses que se
perciben al da de la fecha para crditos personales o de consumo en Argen-
tina, que oscilan en los Bancos Comerciales, aproximadamente en el 33%
para los valores mnimos y el 43% para los mximos. En relacin al Costo
Financiero Total de dichas entidades se ubic en un rango que promedi el
55% para las tasas mnimas y el 75% para las mximas.
a) Anticipos de subsidios.
El rgimen inicial del Decreto Ley 17.741 establece como mecanismo de
apoyo a las producciones, el correspondiente a los subsidios por medios
electrnicos. Dicho subsidio originariamente estaba establecido para
que fuera destinado a la pelcula, una vez terminada. Sin embargo, en
forma excepcional se comenz a admitir que quin tuviese una primera
clasificacin favorable y cumpliese con los dems recaudos de la ley,
pudiese solicitar que se le anticipara en forma excepcional parte del
dinero que habra de serle acordado con posterioridad.
Este dispositivo, a diferencia de la obtencin de un crdito ya sea
por la propia Institucin o un Banco no genera curso de intereses,
ni requiere garantas, avales y dems condiciones que este ltimo re-
quiere normalmente para su obtencin. Sin embargo, se requieren los
siguientes requisitos: 1) Haberse dictado la Resolucin de Clasificacin
del proyecto considerndolo de inters para el Organismo; 2) Acreditar
fehacientemente que se ha concluido el rodaje de la pelcula de que se
trate y 3) Acreditar los costos efectivamente pagados con relacin a la pe-
lcula de que se trate por un importe superior a la suma que se solicita.
c) Cesiones.
Las cesiones permiten la transmisin de derechos econmicos, ofre-
ciendo la posibilidad a los productores de la industria de utilizar las
mismas como medio de pago (Se encuentra regulado por el Cdigo
Civil de la Nacin, en sus artculos 1434 a 1484). Este contrato ha sido
y es utilizado de forma extensiva en los proyectos cinematogrficos y
audiovisuales por cuanto han permitido, en la prctica, materializar
Argentina 19
d) Apoyo a lanzamientos.
Los mecanismos de colaboracin del Estado Nacional no se limitan a la
etapa de la produccin, sino que se extienden con la ayuda que reciben
las pelculas a los efectos de su lanzamiento en el territorio nacional.
El INCAA destina partidas presupuestarias a la contratacin de publi-
cidad para las pelculas que habrn de ser presentadas. A solicitud del
productor, el Instituto evala las necesidades de difusin, y contrata
pasacalles, vidrieras, publicidad esttica y dinmica, pautas radiales y
televisivas a fines de dar a conocer el estreno de las pelculas.
f) Digitalizacin de Salas.
Siendo que el circuito cinematogrfico requiere, por su parte, contar
con pantallas para la exhibicin, se ha producido como consecuencia
de los cambios tecnolgicos la necesidad de digitalizar las salas de cine.
El INCAA acta en el sector acordando con entidades bancarias el
subsidio de las tasas de inters para los exhibidores privados, y equipa y
programa los denominados espacios INCAA, vinculados a Municipios
y Provincias y espacios propios, como el recientemente adquirido Cine
Gaumont, emblema de la Ciudad Autnoma de Buenos Aires.
20 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
7. Conclusiones.
La Repblica Argentina considera a las manifestaciones culturales, entre las
cuales se encuentra la cinematografa, como derechos tanto por parte de aqul
que las produce como de quienes las reciben, que no slo merecen tutela esta-
tal, sino su activa participacin en el fomento y la proteccin de las mismas.
Este compromiso se ha manifestado durante dcadas y se ha consolidado en
los ltimos aos, a travs de planes inclusivos que hacen posible la produc-
cin audiovisual nacional y su llegada gratuita a millones de argentinos. En lo
22
22 Mecanismos Actuales de Financiacin de Contenidos Udiovisuales en Latinoamrica 2
By Fernando Martnez*
I n 1995, Bolivian cinema was experiencing a boom for the first time in its
history: five films were released, four of which were by new directors, and one
by a firmly-established producer. The recently-passed Law N 1,302 was opening
doors to all new productions.
In Bolivia, the National Film Council (CONACINE) has administered an annual
fund of approximately U$1 million since 1992. Still in effect today, the above-men-
tioned law mandated the Bolivian State to disburse that amount as a lump sum,
and obliged CONACINE to implement revolving credits in order to finance film
production. The interest charged on each loan granted ranged from 3% to 8 %,
which resulted in the technical collapse of the Cinematographic Development
Fund in 2006 because several of the films which were funded failed to repay their
debt to the fund from their box office revenues.
The first films made with loans granted by the CONACINE Cinematographic
Development Fund managed to pay back the loans within three to five years.
Another significant piece of information is that, in order for this scheme to func-
tion, CONACINE required directors and producers to put up collateral.
After 1995, Bolivia returned to its normal average of one film per year. The first
credits were recovered towards the end of 2002. During this period Bolivia be-
gan to pay its membership fees to the Ibermedia Program. Overall, the outlook
was very encouraging, since at least three films were forecast for 2003, with bud-
gets of U$500,000, in addition to other projects with very ambitious budgets of
around U$1million or more.
23
24 Current mechanisms for financing audiovisual content in latin america 2
The film law in Bolivia was considered a pioneering initiative and only second in
the region after Argentina, although it contained a clearly neoliberal view: it dis-
guised credits with interests and collateral (in Bolivia, the 1990s were plagued by
a wave of privatizations). In the cultural sphere, a globalization process loomed.
The Bolivian government had become sensitive to the voices of minor cultur-
al sectors and had rewarded them with these laws, shedding much of its own
responsibilities.
From the early years of the XXI century onwards, much was said about tech-
nological changes. In 2004, the first movie theater complex was inaugurated in
Santa Cruz de la Sierra: the Cine Center, with investments consisting mainly
of foreign capital (Spanish) and also some Bolivian funding. It included a com-
mon area with twelve screens, a food court and other attractions. This enterprise
was soon followed by a replica in Cochabamba. However, La Paz continued with
its nostalgic, traditional theaters with seating capacity of over 200. At that time,
there were three such theaters with these characteristics, and La Paz was still city
with the largest audiences in its movie theaters.
Bolivian productions leased these theaters in La Paz in order to exhibit films com-
mercially, with a minimum risk in recovering their cost through box office rev-
enues. However, Bolivias capital city lived through tumultuous times between
2003 and 2006, which, to some extent, seemed to have scared off investments.
Important technological changes coincided with the inauguration in Bolivia of
major theaters known as multiplexes, already commonplace in many other coun-
tries since the beginning of this decade. This forced the public to deal with a rapid
adaptation in the way movies were watched. The theaters moved from screening
three to four sessions per screen with fixed times, to more than twelve sessions a
day at a wide variety of times. In 2008, La Paz shifted from less than five first-run
theaters to 35 screens in 2013, in some six complexes.
Film productions began to appear in towns such as Santa Cruz and Cochabam-
ba, as the arrival of digital technology spurred the appearance of several young
directors, while at the same time, despite the digital system becoming ever more
consolidated, a battle of the generations took place for the occupation of privi-
leged facilities.
In terms of access to production funding, La Paz was accused of centralism,
which was also a reflection of what was occurring elsewhere in Bolivia. Import-
ant initiatives were underway elsewhere in the country, with lively festivals and
productions undertaken with ample good will and local support.
Bolivia 25
The gap appears at the post-production stage, which is not addressed by gov-
ernment funding, and far less by private investments. Many people think that a
film is finished once shooting ends. Bolivia has bitter experience with this phase,
with many projects imploding, and unable to be completed with the minimum
conditions required for exhibition. Even under the previous Cinematographic
Development Fund, this phase was not covered. In Bolivia, many young produc-
ers are unaware of the costs of this phase and do not include it in their business
or creative planning.
In the past, Bolivian film producers turned to foreign laboratories for developing
their films, and today they are doing so for the post-production process, with
resulting increased costs. Today Bolivia at least offers working conditions for ed-
iting the soundtracks and basic color correction, although sometimes it may be
necessary to rely on foreign laboratories and studios for the final sound-mixing,
color correction and all the delivery materials required. Funding for this stage
comes out of the producers pocket, and with luck, a non-government institution
may be contacted in exchange for theatrical and television exhibition rights, with
the risk of turning the film into an educational project. This is what happens in
most cases.
Paradoxically enough, the exhibition and distribution stages seem to be more
stable, where government institutions and private companies are eager to pro-
vide support once they see the finished product, and eager to display their logos
among the credits. To do so, they offer small amounts of money or barter air tick-
ets to premiers, hotel accommodation or participation in gala events. The pro-
ducer must invent strategies to please the authorities, company owners and the
press, which usually offers limited amounts of print space, always overshadowed
by news about the release of the latest blockbuster. Then we face the opinions of
academic critics biased by their personal views of the film, rather than telling the
public why they should go to see a specific domestic film. On some occasions, and
with luck, a Bolivian film will find a promotional exchange with a bank, telephone
or television network, when the counterpart means exclusive use of its image or,
for television, offering broadcasting rights previously exchanged for promotional
spots aired at midnight.
Despite its gloomy tone, the situation described above does promise changes.
Work is underway on the draft of the new Cinema Act, now with new players.
However, the political will is still in doubt, and the struggle will focus on discov-
ering whether this political will to support the cinema and audiovisual indus-
try exists, and if the political process may be an ally for cinema and audiovisual
Bolivia 29
production. At the same time, the La Paz City Hall has launched a competitive
fund for the first time of approximately US$30,000 for films shot in La Paz, with
the largest amount allocated to a production so far US$ 15,000. The government
has also provided strong support for private initiatives such as the Bolivia Lab,
and Fenavid.
All these changes require government support, political will and strong insti-
tutions engaged in fostering cinema and audiovisual productions. Among film-
makers there must be a strong commitment to portray Bolivia in such produc-
tions. In the words of the well-known critic and filmmaker Luis Espinal, who was
murdered for defending democracy: In order to be universal, more local stories
must be told. The state needs to reflect on this concept: Be aware that we cannot
artificially inflate, through excessive costs and budgets, a medium that requires
the support of all parties in order to move ahead. We must all push the cart in the
same direction.
The overall situation now seems to be changing slightly at least, and we are start-
ing to see a light glimmering at the end of the tunnel. However, filmmaking in
Bolivia is still a challenge. An indicator of this challenge is that in Bolivia, a film
with a minimum of quality will require a budget of approximately US$100,000.
We must cease seeking an easy formula to recoup investments and instead begin
to consider how to foster production and exhibition activities in a broader-based
manner, encouraging the public to view our films, and also extending this cam-
paign to television, which is also now impacted by technological changes. Thus,
this is the time to regulate our industry in order to reinforce our presence on
theater screens.
Making movies today in Bolivia is still a matter of faith.
*Editors note: On December 27, 2013, after contributing this article, Fernando
Martinez suddenly passed away, leaving an enormous legacy of contributions to
the cinema of Bolivia and Latin America.
Bolvia
31
32 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
no son el sueldo del autor y del productor sino que es un dinero destinado a
la inversin a la produccin en toda la cadena.
El CONACINE, o la futura institucin encargada de regular y fomentar la
produccin de contenidos deber aprender a hacer lobby, acompaar el es-
fuerzo de una produccin o proyecto en mercados, encuentros o festivales de
cine. Debemos volver a poner al cine y al audiovisual boliviano en el mapa
mundial de la produccin. Hoy todos estos espacios internacionales hacen
otro tipo de bsquedas, pues uno ve el listado y se encuentra con proyectos de
pases tradicionales que asisten a estos eventos. No hay casi ningn nombre
de proyecto o cineasta boliviano, pero por qu? Nuestros guiones y pelculas
son tan malas?, o el mundo todava no comprende lo que se quiere contar
como pas y como sociedad? Cuando una pelcula llega a estos espacios so-
mos una sensacin, producimos la excepcin a la regla, pero no hacemos la
regla y sta es importante para generar continuidad en los proyectos de cine
y pelculas.
Hoy las vas para financiar un proyecto cinematogrfico pasan primero por
tener un buen proyecto trabajado y corregido. Y por supuesto es importante
que los autores sepamos corregir, enriquecer nuestros proyectos, renunciando
a geniales ideas. Es decir, asumir la idea de trabajar en equipo.
El desarrollo de proyectos se financia hoy a travs de una inversin directa del
autor y productor casi en un 50 % y teniendo apoyos de foros y encuentros
como el Bolivia Lab., Fenavid y el Festival de Cine de Derechos Humanos; y
para contar con efectivo en el caso de apuntar a un desarrollo por la va de
la coproduccin est el Programa Ibermedia, el cual da un techo de hasta 15
mil dlares estadounidenses (el historial y promedio otorgado a proyectos en
Bolivia es de 10 mil dlares).
Ac surge una pregunta una vez ms: alcanza este monto para el desarrollo
de un proyecto? Hasta hoy los proyectos financiaron su desarrollo solo dentro
del territorio nacional. El desarrollo de proyectos bolivianos est lejos todava
de los grandes foros, festivales y encuentros.
La parte de la produccin es la ms cara y compleja en la cadena de produccin
y la que ms dinero en efectivo necesita. Como fondo principal se cuenta con
el Programa Ibermedia, con una convocatoria anual y concursable. Si un pro-
yecto es beneficiado tiene por lo menos el 50 % de produccin en territorio
nacional asegurado, si es que tiene el control del 100 % de esta ayuda. Otros
apoyos directos de instituciones pblicas, en honor de la verdad, depende
36 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
S ince the early 90s Brazil has promoted the entertainment industry, in particular
the audiovisual market. This investment is consistent with a continued public
policy that led to the creation of the National Cinema Agency (ANCINE), the
regulator and promoter of audiovisual activity in the country, together with the
Audiovisual Secretariat of the Ministry of Culture.
An analysis of the box office revenue for the period 2009-2012, shows an increase
of 30% in tickets sold and 66% in the gross income of the theaters throughout the
country. Proceeds from Brazilian films increased 20% over the same period. Sim-
ilarly, the income of national film distributors increased about 120%. .In 2012,
31.7% of total admissions was generated by feature films marketed by national
distributors, and 79.4% of the income earned by the Brazilian titles was generat-
ed by these companies films. The Brazilian exhibition sector, which in end2012
reached 2,517 screens, also had a significant increase of 19.3% over 2009. Brazil
ended 2012 with an average of 77 thousand inhabitants per theater complex. Of
the total screens, 784 have digital projection equipment in DCI standard, which
corresponds to 31% of the Brazilian exhibition sector1.
In parallel, the new Pay TV Law, as we shall see, revolutionized the television
market, boosting demand for Brazilian independent production and increas-
ing the populations access to audiovisual services. The demand for more and
better quality content also generated a positive impact on other windows. Thus,
it was the demand that produced a trend toward the professionalization of the
marketplace.
1 http://oca.ancine.gov.br/ - Accessed on 11/06/2013.
39
40 Current mechanisms for financing audiovisual content in latin america 2
This change in paradigm brings to the activity a new way of thinking about inde-
pendently-produced audiovisual works, as assets with great commercial potential
and the power to attract new investors, and promote new public policies. The
array of funding mechanisms has served as a determining factor for the struc-
ture of the financing plan of audiovisual works in Brazil. The Audiovisual Sector
Fund, for example, the direct government investment policy tool, has allocated
over R$400 million, since its inception, for distribution and production. It is ex-
pected that the new injection of funds, resulting from the tax contributions of the
Telecommunications Fund, implemented by the new Pay TV Law, will generate
new funds of approximately R$ 800 million annually.
2 In 2009, the penetration of television service in Brazil was approximately 12.7% of the total households with
television, against 77% penetration of the service in Argentina. United States and Germany, for example, have
rates higher than 90% (source: Media Facts 2009, Brazilian Pay TV Association, cited in the presentation by
the Supervisory Board of Market Monitoring of ANCINE - SAM in March 2012). It is worth noting that at
the end of 2011, the penetration rate of television service already reached 20% of TV households (according
to data from the same presentation by the Supervisory Board of Market Monitoring of ANCINE - SAM),
which demonstrates rapid penetration growth in recent years - which tends to further accelerate with the
commented legislative changes.
Brazil 41
produced through fiscal benefits are Brazilian works and will be able to fulfill the
quotas of national content imposed by the new legislation.
International Coproduction
International Coproduction is a form of production of audiovisual works per-
formed by producing partners based in two (2) or more countries, and engaged
in production activity that includes the sharing of responsibilities for the eco-
nomic organization of the work, including the contribution of funds, goods or
services, and the sharing of the rights in regards to the audiovisual work resulting
from said collaboration among the co-producers.
From the above definition we can extract three important concepts: (i) the parties
involved must engage in the activity of production, although individuals may exer-
cise these activities; the foreign producer must also prove competence by means of
an audiovisual producer license issued by a Competent Authority of its country of
origin; in addition, for the purpose of raising Brazilian federal funds, the Brazilian
co-producer shall be a company; (ii) the economic responsibility for the audiovi-
sual work to be produced must be shared; (iii) the co-production should include
the sharing of ownership of the rights in regards to the audiovisual work resulting
from such collaboration, in proportion to its economic contribution.
There are two types of audiovisual works performed under the international co-
production, whose terms will be observed at the time of their recognition by the
competent authority:
to projects for the production of independent Brazilian short, medium and fea-
ture-length films, as well as technical infrastructure projects, for the production
and exhibition of cinematographic and visual works, including the remodeling
and adaptation of theaters for the use of technical visual or audio services.
Brazilian companies utilizing the Real Taxable Income Regime and individuals
may deduct the amounts invested as an operating expense, and also deduct the
entire amount from their income tax due (up to the limit of 3% of the tax due).
For example: an investment of R$ 40,000 in a project would generate a profit
of R$ 50,000 for the taxpayer. Moreover, when dealing with this investment
mechanism, the investor becomes a rightsholder of the resulting product and
maintains an interest in the proceeds from the film. In addition, individuals may
deduct 100% of the amounts invested in the projects, up to a limit of 6% (six
percent) of the amount of income tax payable, in addition to their interest in the
proceeds from the film .
The ceiling for use of the tax benefit of Article 1 and 1A (as we see below) of Law
No. 8.685/93 is 4 (four) million Reais (with the application of both Articles 1
and 1A) for each approved project.
The ceiling for use of the tax benefit of Article 3 of Law No. 8.685/93 is three (3)
million Reais for each approved project.
4 The benefit granted is 70% on the rate of 15% withholding tax because the [...] amounts paid, credited, de-
livered, used or remitted abroad by purchase or remuneration in any capacity, in any form of law, including
the transmission through radio or television or by any other means, any movies or events, even sports com-
petitions including Brazilian representation as provided in article 72 of Law 9430/96.
Brazil 45
This benefit mechanism exempts Pay TV programmers from paying the so-called
CONDECINE levy (at the rate of 11% on the amount of the remittance), pro-
vided that they invest 3% of the amount due, derived from the credit, remittance
or delivery to producers, distributors or intermediaries abroad, of the amounts
related to income from the commercialization of cinematographic or video
works, for the acquisition or importation, at a fixed price, as well as any amount
relating to the acquisition or licensing of any form of rights, in the investment in
projects previously approved by ANCINE.
49
50 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
Coproduccin Internacional
La Coproduccin Internacional es la modalidad de produccin de obra au-
diovisual realizada por agentes econmicos con sede en 2 (dos) o ms pases
que ejerzan actividad de produccin que contemple la coparticipacin de las
responsabilidades por parte de la organizacin econmica de la obra, inclu-
yendo el aporte de recursos financieros, bienes o servicios y la coparticipacin
sobre el patrimonio de la obra entre los coproductores.
De la definicin anterior se pueden extraer tres conceptos importantes: (i)
las partes involucradas deben ejercer la actividad de produccin, muy a pesar
de que las personas naturales puedan ejercer esas actividades; el productor
extranjero tambin deber comprobar su aptitud por medio de un certificado
de productor audiovisual emitido por la Autoridad Competente de su pas;
adems, para fines de captacin de recursos pblicos federales brasileos,
el coproductor brasileo deber ser sociedad empresaria; (ii) la responsabili-
dad econmica por la obra deber ser compartida; (iii) la coproduccin debe
contemplar la coparticipacin de los derechos patrimoniales sobre la obra,
proporcionalmente a su contribucin econmica.
Existen dos tipos de obra audiovisual realizada en rgimen de coproduccin
internacional, cuyos trminos sern observados en el momento de su recono-
cimiento por la autoridad competente:
en Argentina. Estados Unidos y Alemania, por ejemplo, presentan ndices superiores al 90% (fuente: Mdia
Fatos 2009, Asociacin Brasilea de TV por Suscripcin, apud presentacin realizada por la Superintenden-
cia de Acompaamiento de Mercado de ANCINE SAM en marzo de 2012). Cabe destacar que, a finales de
2011, el ndice de penetracin del servicio de televisin por suscripcin ya llegaba al 20% de los domicilios
con televisin (conforme a los datos de la misma presentacin hecha por la Superintendencia de Acom-
paamiento de Mercado de ANCINE SAM), lo que demuestra el rpido crecimiento de la penetracin en
los ltimos aos que tiende a acelerar an ms con las alteraciones legislativas comentadas.
52 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
3 En los trminos del art. 13 del Decreto-Ley n 1.089, de 1970, alterado por el art. 2 de la Ley n 8.685/93
(incidente a razn del 25% sobre las remesas).
Brasil 55
Las acciones del FSA estn dirigidas para actuar en reas especficas, identifi-
cadas con base en diagnsticos, investigaciones y estudios tcnicos. Para tal,
las lneas de actuacin del FSA se definen teniendo como premisas funda-
mentales los resultados esperados, la perspectiva de la sostenibilidad de las
acciones y de sus resultados a largo plazo, la garanta del compromiso de los
beneficiarios con los resultados establecidos, as como la evaluacin peridica
de los resultados alcanzados. Actualmente, existen cuatro lneas de acciones
del FSA para el mercado audiovisual: Lnea A - PRODECINE: produccin de
largometraje; Lnea B - PRODAV: produccin para televisin; Lnea C - PRO-
DECINE: adquisicin de derechos de distribucin en salas de exhibicin; y
Lnea D - PRODECINE: comercializacin en salas de exhibicin.
Los recursos que componen el Fondo Sectorial del Audiovisual son oriundos
del Presupuesto de la Unin y provienen de diversas fuentes, principalmente
de la recaudacin de CONDECINE Contribucin para el Desarrollo de la
Industria Cinematogrfica Nacional, y de ingresos de concesiones y permisos,
principalmente el FISTEL Fondo de Fiscalizacin de las Telecomunicaciones.
CONDECINE tiene como hecho generador la transmisin, produccin, li-
cenciamiento y distribucin de obras audiovisuales con finalidad comercial
por los prestadores de servicios que utilicen medios que puedan distribuir
contenidos audiovisuales, tales como las empresas de telecomunicaciones y
operadoras de televisin por suscripcin (servicio de acceso condicionado).
Adems de estas, el FSA obtiene ingresos derivados del cobro de tasas, multas
y del producto de rendimiento de aplicaciones financieras.
El presupuesto global del FSA se define en bases anuales, a partir de proyec-
ciones elaboradas por la Secretara de Presupuesto Federal (SOF) del Minis-
terio de Planificacin. El presupuesto previsto para el ao 2014 debe superar
R$ 800.000.000,00 (ochocientos millones de reales).
Chile
By Andrs E. Young.
The only sources of permanent financing available for the production of audiovi-
sual projects in Chile come from the government.
There are three sources specifically targeting the audiovisual sector:
1. Audiovisual Development Fund, established by the Audiovisual
Development Act;
2. Quality Development Fund established by the law that set up the
National Television Council; and
3. Creative Industries Program Fund, Competitiveness Administration,
Production Development Corporation (CORFO).
There are no private sources of financing or funds that support the audiovisu-
al industry. However, there is a tax benefit, duly updated as of January 1, 2014,
which may encompass certain private projects although with limited applica-
tions in the audiovisual industry, as shown below.
1.1 Introduction
The Audiovisual Development Fund (FFA) was established by the National
Culture and Arts Council (CNCA) under Law N 19,981 addressing audiovisu-
al development, published in the Government Gazette on November 10, 2004,
and designed to encourage financing for projects, programs and development
61
62 Current mechanisms for financing audiovisual content in latin america 2
social, artistic and cultural impact, technical and financial feasibility, and financ-
ing structure.
Each year, the CAIA defines a percentage of outstanding Chilean works that are
addressed by supportive production projects, as per letters a), b) and c) above,
based on the quality requirements of the candidate projects, as well as criteria
and programs fostering the even development of audiovisual activity in various
parts of the country.
1.5 Beneficiaries
Chilean entities established under public or private law, either non-profit or
for-profit.
2.1 Introduction
The National Television Council Fund (CNTV) is an autonomous public ser-
vice with its own assets and legal status, linked to the Chilean President through
the General Government Ministry Secretary. It was established through Law N
18,383, published in the Government Gazette on September 30, 1989, with the
responsibility of promoting financing or underwriting the production, trans-
mission or broadcasting of programs of a high cultural level or in the national
or regional interest, together with its main function of overseeing the correct
functioning of television services, ensuring programming reflecting permanent
respect for the inherent moral and cultural values of the Nation: human dignity;
64 Current mechanisms for financing audiovisual content in latin america 2
2.5 Beneficiaries
Depending on the Categories through which the CNTV established the guide-
lines, the following corporate entities may be beneficiaries:
a) Independent producers;
b) Nationwide public television channels;
c) Regional public television channels;
d) Local public television channels; and
e) Associations between one or more Chilean coproducers and one or
more international coproducers.
3.1 Introduction
CORFO is a Chilean agency established in 1939 in order to spur domestic pro-
duction activities. Its initiatives include the Creative Industries Program (Program), whose
purpose is to foster the development of the audiovisual industry, encouraging the
implementation of projects for cinema as well as television, handled by production
houses and / or audiovisual producers, designed for the domestic and internation-
al markets, always within the framework of strategic efforts designed to underpin
the development of new businesses for the Chilean audiovisual industry.
CORFO may finance up to 70% of the total costs of the project, whenever this
does not exceed 14 million pesos for long and medium length features, and 7
million pesos for shorts.
b) CORFO TV supports the development of projects for television in the fiction,
reporting, documentary, animation, cartoons and childrens genres, focusing on:
Fostering script writing;
Developing production design business plans;
Drawing up budgets that list in detail the total costs of the project;
Preparing an audiovisual maquette; and
Financing which may be requested in addition for the following activ-
ities: character descriptions, documentary / journalist investigations,
casting, locations, storyboards and investor prospectus.
CORFO may finance up to 70% of the total cost of the project, provided that this
does not exceed 18 million pesos.
This program is available for financing projects designed for public and / or pri-
vate television.
3.5 Beneficiaries
Selection processes are open to Chilean citizens and / or corporate entities
whose working capital or corporate purpose consists of audiovisual activities,
with taxable net incomes or annual net sales of no more than 100,000 Develop-
ment Units, respectively.
Law specifically states that authorizations related to such payback may be exer-
cised only five years after the first commercial sale of the work.
Due to the recent entry into effect of this legal reform, time will be needed to
see how this tax benefit works in practice, and whether it is effective or not for
financing audiovisual project.
Chile
1.5 Beneficiarios.
Personas jurdicas chilenas de derecho pblico o privado, con o sin fines de
lucro.
2.5 Beneficiarios.
Sern beneficiarios, dependiendo de las categoras, segn el CNTV determi-
ne en las bases, las siguientes personas jurdicas:
a) Productoras independientes;
b) Canales de libre recepcin y cobertura nacional;
c) Canales de libre recepcin y cobertura regional;
d) Canales de libre recepcin y cobertura local; y
e) Asociaciones entre uno o ms coproductores chilenos y uno o ms
coproductores internacionales.
2.6 Obligacin de reembolso.
No existe obligacin de reembolsar el aporte recibido a travs de los Fondos
CNTV.
3.5 Beneficiarios.
En los concursos podrn participar personas naturales y/o jurdicas, naciona-
les, en cuyo giro u objeto social se comprenda la actividad audiovisual y que
acrediten una renta lquida imponible o ventas anuales netas no superiores a
100.000 unidades de fomento, respectivamente.
Como se ver hay dos importantes limitaciones para que este incentivo fis-
cal redunde en el desarrollo de la produccin audiovisual. Por una parte,
las empresas con fines de lucro no estn dentro de los posibles receptores
de la donacin o Donatarios en esta ley. Es as como excluye de plano toda
forma de organizacin que persiga fines de lucro, modalidad a travs de la
cual habitualmente se estructuran las productoras audiovisuales. En segundo
trmino el Comit Calificador de Donaciones privadas podr determinar, en
atencin a la naturaleza del proyecto y al monto del financiamiento acogido
a esta ley, una retribucin cultural a la comunidad, que en el caso del audio-
visual corresponde a entregar una autorizacin gratuita al Consejo Nacional
de la Cultura y las Artes, para la exhibicin pblica de la obra en el territorio
nacional. Si bien podra pensarse que esto perjudica la comercializacin del
proyecto audiovisual, la ley expresamente seala que al aplicar la retribucin,
dicha autorizacin no podr ejercerse antes de los cinco aos contados desde
el primer acto de comercializacin de la obra.
Debido a la reciente entrada en vigencia de esta reforma legal, habr que espe-
rar para ver cmo opera en la prctica este beneficio tributario y si es efectivo
o no para financiar proyectos audiovisuales.
Colombia
Introduction
I n this new edition, it is gratifying to list the progress that has taken place in
the financing and incentive mechanisms available for audiovisual productions
in Colombia, resulting from a policy designed to make Colombia not only
competitive in terms of cultural industries, but also an ideal location for the
production of world-class audiovisual works.
These incentives reflect the concerns of the Colombian government as well as
those of leading players in the audiovisual sector, who resolved to encourage the
awards of tax and business incentives through issuing new rules that will boost
the output of audiovisual content in Colombia, thus encouraging tourism ac-
tivities while enhancing the nations image, fostering the development of the
Colombian film industry, as well as exporting audiovisual services all over the
world.
This is why Law N 1,556 was promulgated on July 9, 2012, presenting Colom-
bia as a source of locations for shooting cinematographic works. This Act estab-
lished the Colombian Film Fund, with the mission of managing and allocating
funds for the promotion of the nations territory through counterpart benefits
offered to domestic and international producers of cinematographic works that
intend to shoot all or part of their projects in Colombia, provided that some
77
78 Current mechanisms for financing audiovisual content in latin america 2
requirements are complied with, such as signing an agreement with the Colom-
bian Film Fund Administrator1.
Another specific characteristic ushered in by this Act is the inclusion of a new
type of special visa for foreign artistic, technical and production staff entering
Colombia in order to make films, streamlining the paperwork for the permits,
allowing them to conduct their professional activities in Colombian territory2.
Consequently, it may be stated that recently-introduced legal mechanisms are
striving to provide tools and incentives for domestic and foreign producers wish-
ing to create world-class content using locations in Colombia, not only because
of its magnificent landscapes, beautiful people and wide diversity of traditions,
but also because it has a steadily increasing group of qualified professionals in
this sector, who have been developing and professionalizing the audiovisual in-
dustry for quite some time.
In order to review the benefits currently offered by the financing mechanisms in
place for the audiovisual sector, we return to some of the mechanisms mentioned
in our previous article, underscoring the alterations that have taken place, while also
outlining some mechanisms introduced subsequently that we feel are of interest.
3 For all the purposes of this article, the conversion rate for Colombian pesos into United States Dollars is
approximately US$ 1 USD = COP$ 1900.
4 It is recommended that the reader reviews the terms and conditions of the Public Calls for Projects through
the following link: http://www.mincultura.gov.co/SiteAssets/estimulos/Convocatoria%202013/Convocato-
ria%20de%20Est%C3%ADmulos%202013.pdf.
80 Current mechanisms for financing audiovisual content in latin america 2
Ethnic Groups:
Production of single documentaries for ethnic television. Five incen-
tives of COP$ 35,000,000 each.
Two prizes for the best television productions made by ethnic groups.
Two incentives of COP$ 12,000,000 each.
1.3 District Incentives Program: Culture, Recreation and Sports Bureau
and the Bogot District Institute for the Arts and Culture: Bogots
Got Talent6.
Through the Culture, Recreation and Sports Bureau and the District Institute for
the Arts, the Bogota City Hall offers a set of technical and financial incentives for
creative and audiovisual productions7, which are set forth in detail below:
a) Creative Grant for Short Fiction Features in Film Format: Incentives: 1
Amount: COP$ 50,000,000.
b) Creative Grant for Short Fiction Features in Video Format. Incentives:
1 Amount: COP$ 30,000,000.
c) Creative Grant for animated short features.8 Incentives: 1 Amount:
COP$ 30,000,000.
d) Creative Grant for Documentaries. Incentives: 1 Amount: COP$
30,000,000.
e) Research Grant for Moving Pictures in Colombia. Incentives: 1
Amount: COP$ 20,000,000.
f) Competitive International Participation Grant, offering incentives of up
to COP$ 3,500,000, until the grant funding runs out. Amount: COP$
15,000,000 each.
g) Childrens Film Acquisitionand Distribution Grant. Incentives: 4
Amount: COP$ 5,000,000 each.
h) Youth Film Acquisition and Distribution Grant. Incentives: 4 Amount:
COP$ 5,000,000 each.
i) Audiovisual Distribution and AcquisitionCreative Grant using New
Technologies and Information Networks. Incentives: 1 Amount: COP$
10,000,000.
6 It is recommended that the reader consult the following link, reviewing the specific rules for the grant
or incentive in which he wishes to participate. http://www.culturarecreacionydeporte.gov.co/portal/
convocatorias2013/artes-audiovisuales
7 There are constraints on participation in this Call for Projects.
8 http://www.culturarecreacionydeporte.gov.co/portal/sites/default/files/BECA_aNIMACION_DEF.pdf
82 Current mechanisms for financing audiovisual content in latin america 2
a) Automatic Incentives:
Promotion of Full-Length Features: The amount assigned to this Cate-
gory is COP$ 2,520,000,000.
International Participation: The amount assigned to this Category is
COP$ 840,000,000.
Category: Documentary:
The total maximum amount assigned to this Category is COP$
1.420,000,000, distributed as follows:
Outline, Storyboards, Scripts: COP$ 160,000,000
Production of short films: COP$ 500,000,000
Production of feature films: COP$ 600,000,000
Promotion and distribution: COP$ 160,000,000
capital investments in their projects. For this type of agreement, there are no
constraints on negotiating the amounts to be invested and the corresponding
counterpart obligations, such as economic and / or title rights and / or others
related to roles in the production.
In this aspect, the initiative implemented by the 64 A Films production house is
particularly noteworthy, which used financing mechanisms for cinematographic
projects through partnering with Green Dog Films in the USA in order to pro-
duce The Madre Monte Project, whose purpose is to finance low-budget sus-
pense, terror or thriller movies, to satisfy the growing demand in the US market
for this type of film genre.
5. Conclusions
This leads to the conclusion that Colombia has implemented a set of policies
and programs that encourage the creative sector - and more especially the au-
diovisual industry - by offering a broad range of economic resources, training
programs and tax incentives to spur the growth and expansion of audiovisual
productions, for both domestic and international producers, while also seeking
to position itself world-wide as an excellent option for using our landscapes as
locations , backed by well-qualified human talent, as a vital tool for producing
world-class audiovisual works.
Colombia
Introduccin
1 Se le recomienda al lector consultar los artculos 9 y 10 de la ley 1556 de 2012 para conocer las condiciones
y porcentajes que la Ley consagra para la obtencin de la Contraprestacin.
2 Para consultar los requisitos especficos sobre la visa para talento cinematogrfico se recomienda consultar
la clase de visa TP1 en el siguiente Link http://www.cancilleria.gov.co/tramites_servicios/visas/clases.
Colombia 91
3 Para todos los efectos de este artculo, se deber entender que la tasa de conversin de pesos colombianos a
dlares es aproximadamente 1 USD = 1900 COP.
4 Se recomienda al lector revisar los trminos y condiciones de la convocatoria ubicados en el siguiente link
http://www.mincultura.gov.co/SiteAssets/estimulos/Convocatoria%202013/Convocatoria%20de%20Es-
t%C3%ADmulos%202013.pdf.
92 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
- No ficcin:
Produccin de televisin de no ficcin para operadores del servicio
de televisin abierta local sin nimo de lucro universitarios. Un
estmulo por (COP $35.000.000).
Produccin de televisin de no ficcin para operadores del
servicio de televisin abierta local sin nimo de lucro.Cinco
estmulos por (COP $35.000.000) cada uno.
Produccin de televisin de no ficcin para operadores del servicio
de televisin cerrada sin nimo de lucro. Treinta estmulos por
(COP) $35.000.000 cada uno.
- Grupos tnicos:
Produccin de documentales unitarios de televisin tnica.
Cinco estmulos por (COP $ 35.000.000) cada uno.
Dos premios a las mejores producciones de televisin realizadas
por grupos tnicos. Dos estmulos por (COP $12.000.000) cada
uno.
1.3 Programa Distrital de Estmulos: Secretara de Cultura, Recreacin
y Deportes e Instituto Distrital de Arte y Cultura de Bogot. Bogot
Tiene Talento6.
La Alcalda Mayor de Bogot, a travs de la Secretara de Cultura, Recreacin
y Deporte y el Instituto Distrital de las Artes, dispone de un paquete de es-
tmulos financieros y tcnicos para la creacin y produccin audiovisual7, el
cual se detalla a continuacion:
a) Beca de creacin para cortometraje de ficcin en formato Cine:
Estmulos: 1 - Cuanta: (COP $50.000.000).
b) Beca de creacin para cortometraje de ficcin en Formato Vdeo.
Estmulos: 1 - Cuanta: (COP $30.000.000).
6 Se le recomienda al lector consultar el siguiente link y revisar las reglas especficas a la Beca o estmulo
en el que desee participar. http://www.culturarecreacionydeporte.gov.co/portal/convocatorias2013/
artes-audiovisuales
7 Esta convocatoria tiene restricciones para su participacin.
94 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
8 http://www.culturarecreacionydeporte.gov.co/portal/sites/default/files/BECA_aNIMACION_DEF.pdf
9 Proimgenes en Movimiento es una entidad autnoma regida por el derecho privado.
Colombia 95
12 Ms informacin: http://doctvlatinoamerica.org/blog/entry/proyectos-ganadores-del-concurso-doctv-lati-
noamerica-iv/es#.UnPxBHBWySo
98 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
13 Las modalidades citadas son las aplicables a las empresas Colombianas. Para mayor informacin revisar el
siguiente link: http://www.programaibermedia.com/nuestras-convocatorias
14 Para mayor informacin revisar el siguiente link: http://dynamocapital.net/quienes-somos/
Colombia 99
The Madre Monte Project, el cual tiene como objetivo financiar pelculas
de suspenso, terror o thrillers, de bajo presupuesto y que busquen satisfacer la
creciente demanda del mercado norteamericano por el contenido de gnero.
5. Conclusiones.
Podemos concluir que nuestro pas ha desarrollado un conjunto de normas y
programas que incentivan las industrias creativas, especialmente la industria
audiovisual, concediendo un amplio nmero de recursos econmicos, pro-
gramas de formacin y/o incentivos tributarios que fomentan el crecimiento
y fortalecimiento de la produccin audiovisual, destinados tanto a los pro-
ductores nacionales como internacionales, buscando igualmente posicionarse
ante el mundo como una excelente opcin para usar nuestros paisajes como
locaciones y nuestro talento humano calificado como herramienta funda-
mental para la produccin de obras audiovisuales de talla mundial.
Cuba
By Lilianne Rodrguez
Introduction
1. Institutional Productions
The Cuban Institute of Cinematographic Art and Industry (ICAIC, www.cuba-
cine.cult.cu) was established by Law N 169 on March 20, 1959. The creation of
this entity established film production and distribution activities as a duty of the
State, pursuant to their dual nature: art and industry.
The articles of Law N 169 included acknowledgment of cinema as a cultural
expression, protected by the State and of vital interest, without indicating the
possibility that any of the activities or processes involved in the creation of a film
or an audiovisual work might be undertaken by an entity other than this Cine-
matographic Institute.
101
102 Current mechanisms for financing audiovisual content in latin america 2
As part of its legislative mandate, the purpose of the ICAIC is the advancement,
dissemination and protection of Cuban cinematography. Article 7 of Law N 169
established that: The Cuban Institute of Cinematographic Art and Industry is
empowered, with the funds placed under the care thereof or obtained thereby
through taxes, credits of financial agreements, () to organize production, dis-
tribution and exhibition companies and, in general, to engage in as many opera-
tions as deemed convenient for achieving its purposes.
This gave rise to one of the peculiarities that have characterized cinematographic
productions in Cuba: the existence in this Institute of structures that encom-
pass the entire chain of activities involved in industry. Consequently, ICAIC still
today includes: a production company, a distribution company, its own cine-
matographic exhibition circuit and an international sales area for titles produced
in the course of this Institutes existence.
For more than five decades, ICAIC has been involved with a large proportion
of films produced in Cuba through its production company, regardless of their
length, genre and exhibition support.
During the past ten years, a series of audiovisual productions have appeared at a
steadily rising pace, made outside this institutional framework. Although at the
full-length feature level, this output has not yet exceeded more than one or two
films a year; however, in terms of short features and documentaries, production
has been steadily rising in both quantity and quality.
2. Types of Financing
Discussions on the need to introduce a new Cinema Act within Cubas current
context have been growing over the past few years. There is an undeniable need
to establish legal rules governing relationships between the State - as a provider
of funds whose purpose is to foster cultural creation and buttress national iden-
tity - and non-institutional creation and production units.
The function of this Act would be to serve as a tool for establishing issues that
are key factors for the performance of the entire work of this industry: national
status, national protection, and access to development funds, screen quotas for
exhibition, legal deposits and others.
In Cuba, there are as yet no production, distribution and exhibition develop-
ment mechanisms, assistance or incentives that are similar to the development
funds (through credits, grants and/or subsidies) that have appeared in the Ibe-
ro-American and European countries over the past twenty years.
Cuba 103
Moreover, in Cuba there are no laws, qualifications or award procedures that es-
tablish the requirements for Cine Nacional status granted to audiovisual works
produced in Cuba, which would address their exhibition in the movie theater
circuit and all other exhibition channels. This function has been assigned to
the cinematographic authority, the President of the Cuban Institute of Cine-
matographic Art and Industry, as a discretionary administrative act that is not
subject to any requirements or quotas related to the artistic and/or technical par-
ticipation of Cuban personnel in the production.
It is important to bear in mind that all production projects conducted through
non-institutional structures in Cuba are not handled through a corporate frame-
work, from the commercial standpoint. They may take place through either a
single, personal entity, or under private agreements among the participants.
Cuban legislation establishes the need for a specific administrative authorization
to establish a civil or commercial corporate entity, which is not normally granted
to individual persons for the incorporation of private enterprises. Consequently,
the figure of the non-institutional producer in Cuba is defined as the individual
person of each participant in the production.
The Republic of Cuba has signed bilateral coproduction agreements with the
following countries: Italy, Canada, Venezuela, Spain and Chile.
For Chile, the coproduction agreement has been signed, although it has not yet
entered into effect.
Cuba is also a signatory of the Ibero-American Cinematographic Integration
Agreement, dated 1989, and has been a member of Ibermedia Program from the
start. Furthermore, it has also been a part of DOCTv since it was first established.
3. Independent Production
In reviewing film production over the past few years, we have seen the appearance
of an independent production sector engaged in creating audiovisual works with al-
most no State intervention, except for institutional aspects. This phenomenon has
prompted an upsurge in the number of productions emerging in Cuba each year.
We distinguish the terms, because this independent sector finances its produc-
tions through a wide range of sources: their own investments, non-state insti-
tutions and corporate sponsors (basically providing contributions in kind),
Cuba 105
4. Private Investors
As described in the Chapter on Cuba in the previous edition of this publication,
there is no tax incentive system nor tax breaks that allow individual persons or
corporate legal entities to obtain tax benefits when deciding to participate in fi-
nancing an audiovisual production.
There is a steady increasing trend of the involvement of individual persons con-
tributing funds to film production, in limited proportions.
Agreements are drawn up that range from financial contributions at no charge
(donations), through associations with the film based on percentages for return
106 Current mechanisms for financing audiovisual content in latin america 2
Introduccin.
Al momento en que escribo este captulo sobre los Mecanismos de Financia-
cin de las Producciones Audiovisuales en Cuba, se est viviendo un impor-
tante perodo de incubacin de cambios en las relaciones entre los producto-
res audiovisuales no institucionales y el Instituto Cubano del Arte e Industria
Cinematogrficos (ICAIC). Es de esperar que, para la prxima edicin de
este material de trabajo, podramos encontrarnos con un espectro de regula-
ciones bien diferente.
Por lo tanto, para esta edicin que nos ocupa, intentar organizar el panora-
ma que tenemos en la actualidad.
1. La Produccin Institucional.
El Instituto Cubano del Arte e Industria Cinematogrficos (ICAIC, www.
cubacine.cult.cu) surge en marzo de 1959, con la promulgacin de la Ley 169
del 20 de marzo de 1959. El surgimiento de esta entidad coloc la produccin
y la distribucin de cine en trminos de deber del Estado; atendiendo a la
dualidad de su carcter: arte e industria.
La Ley 169 incorporaba en su articulado el reconocimiento del cine como una
manifestacin de la cultura, protegida por el Estado y de inters primordial; sin
107
108 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
2. Formas de financiacin.
El debate sobre la necesidad de la adopcin de una nueva Ley de Cine en el
contexto cubano actual no ha hecho ms que incrementarse en los ltimos
tiempos. La necesidad de que se establezcan normas legales que ordenen las
relaciones de los ncleos de creacin y produccin no institucional y el Esta-
do como proveedor de recursos que tengan como objetivo fomentar la crea-
cin cultural y la identidad nacional, es ya indiscutible.
Cuba 109
3. La produccin autnoma.
En el caso de la produccin cinematogrfica, desde hace algunos aos hemos
asistido al surgimiento de un sector productivo que asume la realizacin de
obras audiovisuales de forma autnoma, sin prcticamente ninguna inter-
vencin estatal, que no sea institucional. Este fenmeno ha provocado un
incremento numrico en la cantidad de producciones que emerge cada ao
en la isla.
Diferenciamos los trminos porque dicho sector autnomo financia sus pro-
ducciones desde las ms diversas fuentes: inversiones propias, instituciones
no estatales y empresas patrocinadoras (fundamentalmente con aportaciones
en especie), coproducciones internacionales y programas internacionales de
estmulo al desarrollo, la produccin, y la terminacin de obras audiovisuales.
Entre estos ltimos podemos citar a Cinergia, el fondo Hubert Balls y ms
recientemente el programa Ibermedia. Si bien Cuba forma parte de Iberme-
dia desde su surgimiento, no ha sido hasta el ao 2010 que ha accedido a las
ayudas que se otorgan a proyectos cubanos cuya participacin nacional sea
de una produccin no institucional, como coproductores minoritarios. Es
importante destacar que este acceso a las ayudas de Ibermedia para proyectos
cubanos no institucionales se produce siempre por la solicitud de fondos
realizada por el coproductor no cubano del proyecto, y que tiene condicin
de coproductor mayoritario. Por lo tanto, no son proyectos que inciden en la
cantidad de ayudas que recibe Cuba como pas miembro del Programa, que
siempre son postuladas y otorgadas a proyectos institucionales del ICAIC.
Como hemos explicado anteriormente, la legislacin del pas no permite la
constitucin de una cooperativa, empresa o persona jurdica de naturaleza
112 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
privada que sea quien lleve adelante la produccin como titular. No obstante,
han proliferado colectivos de trabajo que en la prctica funcionan como tal,
pero sin las garantas jurdicas que permitiran separar los patrimonios perso-
nales de todos los participantes de las obligaciones contradas con motivo de
la produccin de la pelcula.
Estos colectivos han desarrollado no pocas de las producciones autnomas de
los ltimos aos, incluidos ms de diez largometrajes, algunos con distribu-
cin y premios internacionales
La legislacin cubana s recoge la posibilidad de un productor no institucio-
nal como persona individual y utilizando esta variante es que se ha llevado
adelante en muchos casos este tipo de producciones.
En los debates que en este momento se llevan a cabo para tratar de actualizar
el marco jurdico de la produccin audiovisual en Cuba, se discute entre los
creadores y productores audiovisuales y la autoridad institucional la posibili-
dad de incluir en dicho marco jurdico la creacin de estructuras asociativas
de carcter ms elemental, como las cooperativas.
4. Inversores privados.
Como describamos en el captulo dedicado a Cuba en la edicin anterior de
este libro, no existe en Cuba un sistema de estmulo y/o desgravacin fiscal
que permita a las personas naturales o jurdicas que deciden participar en
la financiacin de una produccin audiovisual, la obtencin de beneficios
tributarios.
Sigue siendo una tendencia que se observa en alza la participacin de per-
sonas fsicas que contribuyen con la aportacin de recursos financieros, en
proporciones limitadas, a la realizacin de pelculas.
Se establecen acuerdos que van desde la aportacin de recursos financieros
de forma gratuita (donacin), hasta la asociacin a la pelcula con porcentajes
de recuperacin de la inversin y distribucin de beneficios, sin que ello ne-
cesariamente implique la tenencia de una cuota de titularidad sobre la obra
audiovisual.
By JorgeLuisSerrano
1.1. Market
Ecuador is a country with less than fifteen million inhabitants, according to the
latest population census conducted by the Ecuadorian Institute of Statistics and
Census (INEC) in 2011; nationwide, there are 230 movie theaters, clustered
mainly (80%) in Quito and Guayaquil. At the moment, some fourteen million
movie tickets are sold at an average price of US$ 4.50.
e exhibition sector has been growing steadily at a rate of 4% or 5 % a year
Th
since 2000, with the number of screens in proportion to the population reach-
ing around one screen for each 62,000 people. The main cinema chains are Su-
percines, Multicines and Cinemark, ranked in this order by their market pres-
ence, together with smaller, stand-alone exhibition companies and a few old
single-theater facilities that are still surviving.
e number of digital and 3D projectors in Ecuador is equivalent to the re-
Th
gional average and, although some complexes have invested in 35mm (still not
115
116 Current mechanisms for financing audiovisual content in latin america 2
amortized), the shift to digital is under way at the same pace as in neighboring
countries. For this year, it is expected that all projection systems will be replaced
on the commercial circuit with digital systems
e most successful domestic productions have attracted between 220,000 to
Th
250,000 viewers at peak, with Ecuadorian films shown in commercial movie
theaters drawing average audiences of some 100,000 people. In 2010, audiences
of just under 400,000 were recorded for the three domestic movies released on
the commercial circuit: Prometeo Deportado (2010), Fernando Mieles; Zuquillo
Express (2010), Carl West; and Rabia (2010), Sebastian Cordero. Nevertheless,
in 2013, ten Ecuadorian full-length features premiered, setting a historic record.
This allowed up to four Ecuadorian titles to be shown at the same time, also an
unparalleled feat, although lowering the average number of spectators for each
domestic title, while maintaining an over-all number of 300,000 movie specta-
tors a year in Ecuador.
owever, the predominance of US productions is overwhelming in terms of lo-
H
cal consumption, with at least 96% opting for these titles each year.
Pirated disks have dominated DVD sales. When implemented, attempts at con-
trol have proven fruitless, and the size of the informal market is so massive that
repressive actions are ineffective. Nevertheless, it must be noted that institutions
such as the Internal Revenue Bureau (SRI) - working in conjunction with the
Ecuadorian Intellectual Property Institute (IEPI) - have taken steps designed to
protect local producers as taxpayers, thus underpinning significant sales of legal
DVDs featuring Ecuadorian movies and paying royalties on more than 200,000
units sold in 2012. Through this channel, between 10,000 and 25,000 copies of
each title are sold, at an average price of US$3 to US$ 5, including: A tus Espaldas
(2011), Tito Jara; Cuando me toque a m (2008), Victor Arregui; Los Canallas
(2010), Ana Cristina Franco, Diego Coral; together with about ten other domes-
tic titles available on the market. Public institutions are currently coordinating a
management plan that will establish permanent controls that will spur domestic
production for this market. This plan is headed by the Ecuadorian Ministry of
Culture and Heritage Assets, focused on protecting the local culture industry.
What has buttressed the stabilization of Ecuadorian production are public sup-
port and development mechanisms. This will now be strengthened with Ecua-
dors new Communications Act, which contains a very important chapter bol-
stering domestic production in the audiovisual and phonographic fields. For the
first time in Ecuador, this Act introduces a screening quota for domestic pro-
duction that may not fall below 60% of total daily programming, setting aside
10% exclusively for independent domestic productions. It also introduces the
concepts of domestic productions and independent domestic productions. This
Act ushers in mechanisms that prevent the concentration of certain service pro-
viders, democratizing this benefit. But its most interesting aspect is that it estab-
lishes the obligation for nationwide private television channels to invest at least
5% of their billings and receivables in two full-length features per year. Ecuador
has five television stations that comply with these characteristics, meaning that
ten full-length features per year will be financed with at least US$ 4 million over-
all. This capital injection will revolutionize the audiovisual and film segments in
Ecuador, supplementing the public funds invested in this sector.
Furthermore, this Act nationalizes the production of advertising, which will
constitute a massive stimulus for investments in services for this sector, with the
resulting generation of jobs.
Constitution that established the National Culture System. The Ministry of Cul-
ture and Heritage Assets of Ecuador is the governing agency for this system.
I t is important to note that the Cinematography Council is the outcome of more
than thirty years of administrative efforts to promote the cinematographic sec-
tor in Ecuador, which has been striving to introduce a Cinema Act since the late
1970s, after the establishment of the historic Ecuadorian Movie-Makers Asso-
ciation (ASOCINE) that still remains active, despite its loss of power. Never-
theless, this Act would be merely the dead letter of the law were it not for the
political will expressed by the Ecuadorian Government and which is the driving
force for its implementation.
e Ecuadorian Cinematography Council is a mixed status entity with three
Th
representatives of the cinematographic profession among its delegates: one for
directors and scriptwriters, one for producers and another for actors and tech-
nicians. The other four representatives come from the public sector: one dele-
gate from the Ministry of Industries, one delegate from the Casa de la Cultura
Presidency, one delegate from the Ministry of Culture, and the President of the
Intellectual Property Institute of Ecuador, who chairs this Council.
s mentioned, the National Cinema Development Act set up the Cinematogra-
A
phy Development Fund administered by the Council. As a result, 2006 may be
effectively considered the most important starting point of the recent about-turn
of the cinematographic industry in Ecuador, when this long-standing wish ma-
terialized. Similar to most Latin American countries, this legal framework gener-
ates benefits solely for domestic production.
is Act has allowed the inclusion of the Cinematography Development Fund
Th
in the General State Budget since 2007, leading to unparalleled investments in
this sector of US$ 8,128,913.97. As mentioned above, these investments have
ensured the stability of domestic production.
I n addition to the local funds, there are two key sources of revenues for the cin-
ematographic industry in Ecuador. One comes from a multilateral mechanism
such as the Ibermedia Program, and the other is a bilateral mechanism through
the Autonomous National Cinematography Center in Venezuela (CNAC). The
former has been possible because Ecuador has paid up in full the minimum
country quota assigned to it since 2008. The latter is the outcome of an agree-
ment between Ecuador and Venezuela that has turned the latter into the main
cinematographic partner of Ecuador in the world. In addition to Venezuela, oth-
er important cinematographic partners of Ecuador are Colombia and Argenti-
na, because co-productions have come about naturally with these countries, not
Ecuador 119
only through needs for different types of services, but also through the exchang-
es of professionals that is becoming a common practice among these countries.
I t is important to recall that Ecuador is a signatory of the three main Latin Amer-
ican - today Ibero-American - cinematography agreements, namely: the Cin-
ematographic Integration Agreement, the Co-Production Agreement and the
Common Market Agreement. These historic mechanisms were signed in Caracas
in 1989, although no institutional use was made of them by Ecuador prior to 2008.
1.6. Challenges
oday, the Ecuadorian cinema industry is experiencing its most prolific mo-
T
ment, in terms of quantity and quality, with results that are highly visible. In
2012 alone, the Ecuadorian cinematography industry won 37 prizes at interna-
tional film festivals in a variety of categories and genres. From Havana, Cartage-
na and Guadalajara to Asian festivals, the talent and quality of male and female
Ecuadorian movie-makers has been acknowledged.
As already mentioned, the Communications Act ushered in an unparalleled
context for Ecuador consisting of, in addition to the matters set forth above,
fine-tuning regulatory aspects while also promoting the expansion of domestic
Ecuador 121
Por JorgeLuisSerrano.
1.1. MERCADO.
cuador es un pais con algo menos de 15`000.000 de habitantes, segun el
E
mas reciente censo de poblacion realizado por el INEC (Instituto Ecuatoria-
no de Estadisticas y Censos) en 2011; posee 230 pantallas a lo largo y ancho
de su territorio, las cuales estan concentradas en Quito y Guayaquil (80% del
total). Anualmente se venden unas 14 millones de entradas al cine, en prome-
dio, y el costo tambien promedio de cada ticket es de 4,50 USD.
l sector de la exhibicion ha crecido permanentemente en un 4 5 % anual
E
desde el 2000 hasta la fecha. La proporcion del numero de pantallas con
relacion al numero de habitantes es de 1 sala por cada 62.000 habitantes
aproximadamente. Las cadenas principales son Supercines, Multicines y Ci-
nemark, en este orden segun su presencia en el mercado, aunque existen otras
123
124 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
ya que el mismo medio apenas tiene algo mas de cuatro anos de vida y an no
ha terminado su fase de implementacion tecnologica, por este motivo no ha
emprendido an grandes proyectos de produccin ni coproducciones impor-
tantes con medios de la regin. Sin embargo, es importante mencionarlo. Asi
mismo, como ventanas a la produccion mundial y nacional, el medio cuenta
con los Festivales de Cine EDOC y el Festival Cero Latitud. Siendo los mas
importantes espacios de este tipo en Ecuador, el primero se trata de una cita
del documental local y mundial, el segundo es una cita para la ficcion. Los
EDOC cumplieron 10 anos en 2011 y se han consolidado como la ventana
mas importante para el documental de creacion en Ecuador. Anualmente se
dan cita cerca de 10.000 personas a su programacion. El Cero Latitud, aunque
se encuentra en un momento de reestructuracion, es el Festival de Cine de
la ciudad Quito que esta cerca tambien de cumplir una decada de actividad.
1.6. Desafios.
a produccin ecuatoriana vive hoy su momento ms prolfico. Tanto en can-
L
tidad como en calidad los resultados estn a la vista. Slo en 2012 la cinema-
tografa ecuatoriana cosech 37 premios en festivales internacionales de cine
en distintas categoras y gneros. Desde La Habana, Cartagena, Guadalajara
hasta festivales asiticos reconocieron el talento y la calidad de los cineastas,
hombres y mujeres, y obras ecuatorianas.
La Ley de Comunicacion, como se ha dicho, plantea un escenario inedito
para el pais el cual consiste en, adems de lo dicho, sumar el aspecto regula-
torio al escenario, como as tambin el fomento de la produccion nacional.
Esto implica que se han creado competencias mas claras y definidas para la
entidad encargada del fomento cinematografico tambien en el ambito au-
diovisual. Es decir, se habla de competencias regulatorias no en terminos del
tipo de contenidos, sino de garantizar espacios minimos para la produccion
y difusin de contenidos nacionales. La ley plantea obligaciones mucho mas
concretas en terminos de cofinanciacin minima por parte de los canales de
television a favor de la produccion nacional independiente, asi como estable-
ce que sera el organo de fomento de la produccion cinematografica nacio-
nal el que acreditara la condicion independiente del productor nacional con
relacion al medio. Esto implica una complejizacion importante del ambito
institucional y de la produccion ecuatoriana.
Por otra parte, al igual que en los paises de la region y buena parte del mun-
do, la circulacion, difusion y exhibicion de la creciente produccion nacional,
130
130 Mecanismos Actuales de Financiacin de Contenidos Udiovisuales en Latinoamrica 2
131
132 Current mechanisms for financing audiovisual content in latin america 2
the Institute collaborates with public and private entities for organizing screen-
play writing workshops.
Furthermore, this Program supports the production of full-length features, with
the purpose of assisting projects with high artistic, thematic and technical content,
as well as good quality commercial movies through two funds: the Cinematograph-
ic Production Quality Fund (FOPROCINE) and the FIDECINE Fund.
In terms of promotion, IMCINE supports Mexican events with a solid track
record, buttressing the position of Mexican cinema, including the Guadalajara
International Film Festival4, the Morelia International Film Festival5, the Ariel
Award Ceremony, the International Cinema Show, and the International Short
Features Film festival at Guanajuato, among others.
In addition to assigning funds, IMCINE also contributes to logistics and distri-
bution, as well as channeling cinematographic materials to new film festivals all
over Mexico to encourage development of new audiences.
It also attends the main movie markets to publicize recent productions in which
the Institute participates as a co-producer. These activities are implemented
under the Cinema Mexico concept, which strives to position the Mexican film
industry within the global film context.
1. Cinematography
sale and exhibition of Mexican films, that apply for financial backing from the
FIDECINE Fund, are considered eligible if they are in compliance with the pro-
visions set forth in the applicable rules.
In order to obtain further financial support, in addition to proving the correct
use of the funds assigned to the previously approved project, candidates eligible
for support must once again demonstrate their economic solvency necessary to
complete their projects on time as agreed.
The support received by any eligible candidate in a specific calendar year may
not exceed 10% of the assets of the FIDECINE fund.
b) Types of support and operations
The types of support awarded by the FIDECINE Fund may consist of:
Risk capital
Credit, Guarantees and Extraordinary Credit
Incentives
Financial backing may be granted only to eligible candidates through any of the
channels listed above, depending on the project requirements and based on com-
pliance with said requirements and criteria established by the FIDECINE Fund.
The reference for requirements and selection criteria is set out and described
in the Operating Rules and Management and Assessment Indicators of the Cinema
Investment and Incentive Fund, issued by all the members of the Technical Com-
mittee of the Cinema Investment and Incentive Fund at an extraordinary session
held on June 4, 2009, and is available at the following internet address: http://
www.imcine.gob.mx/fidecine.html.
c) Award of Financial Support
The support awarded by FIDECINE Fund as risk capital, credits, guarantees and
extraordinary credits or a combination of any of these, which imply technical
and financial feasibility, will be:
Up to 49% of the project cost;
Up to 10% of the funds allocated each year by the Mexican Expenditures
Budget and earmarked for the trust fund operations (Fideicomiso).
Mexico 135
Under no circumstances whatsoever may the total value of the support provided
through Tax Incentives (Cinema and the FIDECINE Fund) exceed 80% of the
total project costs.
It is important to note that the extraordinary credit category will be granted only
when the completion of the production is jeopardized by causes beyond the
control of the eligible candidate.
d) Operating Mechanism
Each year, the FIDECINE Fund publishes in two daily papers with nationwide
circulation a Call-For-Projects that is open to individuals and companies (el-
igible candidates) having Mexican nationality, requesting presentation of full-
length film projects whose production qualifies for financial support grants.
Once this Call-for-Projects has been published, the eligible candidates must
contact the FIDECINE Fund offices, where they must deliver the registration
documentation as requested, together with the dossiers and project folders con-
taining the above-mentioned materials.
Only projects that comply with all the requirements set forth in the Call-for-
Projects, in each case, will be taken into consideration by the FIDECINE Fund
Technical Committee, which is not subject to appeal.
The Executive Secretary will notify the eligible candidates in writing of the de-
cisions reached by the Technical Committee and, once a project has been ap-
proved, the Technical Committee issues an agreement that defines the type and
amount of support to be granted. Following this notification, the eligible can-
didate must sign the corresponding formal agreement within six months for a
Mexican project or twelve months for an international project.
The contract is drawn up and signed, establishing the purpose, duration, terms
and conditions of the backing, as well as sanctions and penalties for default by
the eligible candidate. The assessment and follow-up mechanism is defined for
the approved projects, which will be overseen by the Executive Secretary, and
who will report back to the Technical Committee.
In order to seek a solution for this delicate situation, the Federal Executive
Branch established the FOPROCINE Fund in December 1997, with financial
support for outstanding creative works and films that are more experimental and
auteuristic.
The FOPROCINE Fund is earmarked for the development, support and dis-
semination of high-quality Mexican cinematography, which is a vital step for
projecting its national cultural identity. This trust fund is administered by IM-
CINE, with the mission of fostering the development of high-quality Mexican
cinematographic activities not addressed by Article 33 of this Act, with the par-
ticipation of the movie-making community, in order to respond to the entertain-
ment and cultural needs and requirements of the population in general, through
backing for production of full-length features.
e) Eligible Candidates
The types of financial support the FOPROCINE Fund offers and/or authorizes
may consist of:
Risk capital;
Credits;
Guarantees;
Promotion; and
Acknowledgment of efficiency.
The financial support granted as risk capital is formally transferred through the
respective agreement between the FOPROCINE Fund and the eligible candi-
dates. The channels may include, but are not limited to: co-productions, Ad-
vance Purchase of Rights and others that are compatible with the purpose of the
FOPROCINE Fund.
Financial support provided through guarantees is formally transferred through
agreements.
Mexico 137
The award of financial support as risk capital for the production or post-pro-
duction phases of full-length features may reach the amount proposed to the
Technical Committee by the Advisory Commission, without exceeding seven
million pesos, which may reach 49% of total investments in the cinematographic
project, but may never exceed 80%, with prior recommendation by the Advisory
Commission and authorization by the Technical Committee.
Additionally, as acknowledgment of efficiency of the production, the FOPRO-
CINE Fund may award 10% of the percentage points held by the FOPROCINE
Fund to projects that are completed on time and under budget as established in
the main agreement. ,.
Where support is provided through credits and amounts as collateral for the pro-
duction or post-production stages of full-length features, these may reach the
amount authorized by the Technical Committee, without exceeding two million
pesos, at an annual rate of 4%, open to review.
Projects granted support as risk capital, credits and/or guarantees will have a
period of eighteen months to complete the production project or film.
h) Operating Mechanism
Before public tender is issued by the FOPROCINE Fund, applicants must con-
tact the Cinematographic Production Support Department of the Mexican Cin-
ematography Institute, located at Insurgentes Sur 674, 2nd floor, Colonia Del Val-
le, Benito Jurez District, Postal Code 03100, Mexico, Federal District, to obtain
the corresponding Registration Form in order to submit the cinematographic
production project for consideration in the beneficiary selection process.
138 Current mechanisms for financing audiovisual content in latin america 2
In order to be eligible for grants from the PROAUDIOVISUAL Fund, the re-
quirements and criteria must be met as established in the Grant Award Guide-
lines for Cinematographic and Audiovisual Industry Projects PROAUDIOVISUAL
Fund, issued by the Technical Committee of the PROMEXICO Public Trust
Fund, at a regular session held in 2012, available at the following internet ad-
dress: http://www.promexico.gob.mx.
As the regulatory authority of the PROAUDIOVISUAL Fund, the Cine-
matographic and Audiovisual Industry Support Sub-Committee will analyze
the production projects and will ascertain the feasibility of supporting grants
in terms of their compliance with the priorities of the industry and their contri-
butions. The Technical Secretary of the Sub-Committee will be responsible for
issuing the corresponding Resolution on the support grant, within no more than
five business days.
Bureau, IMCINE and CONACULTA, listing the authorized projects and the
amounts of the awarded tax incentives.
a) Treasury Reform for the 2014 Financial Year
2. Television: CANAL 22
Known as Canal 22, Television Metropolitana S.A. de C.V. is an enterprise in
which the State holds a majority stake, pursuant to Article 46 of the Federal Civil
Service Act. Since 1993, Canal 22 has been under the supervision of the Public
Education Bureau and CONACULTA. Its establishment responded to requests
from members from Mexicos cultural and artistic communities, calling on the
nations government to reinforce the existence of a television channel whose
content focused on disseminating major expressions of art and culture in Mexi-
can television productions.
In 2013, eager to document, encourage and promote independent audiovisual
productions in Mexico, while also spurring and strengthening these activities as
a strategic priority for the artistic and cultural future of Mexico, Canal 22 pub-
lished a call for projects for independent producers.
More specifically, the audiovisual projects that it strove to support are animated
shorts for children focused on three distinct topics: My Town, My Family and
My School, with screening times of no more than five minutes and a ceiling of
$250,000.00 pesos on the backing granted to the project winner.
Mexico 141
a) Eligible participants:
Mexican or foreign individuals or corporations may be eligible. Foreign
individuals must establish legal residency in compliance with the Gen-
eral Population Act, to be qualified to participate.
Projects must be original and unpublished.
Only one application is permitted from each candidate. If a producer
attempts to participate with more than one project, all his submitted
projects will be disqualified.
No participants may work on the Canal 22 premises or be related to any
employee, or have any asset or contractual links to Canal 22.
In order to respond to the call for projects for independent producers, compli-
ance with the requirements and guidelines is necessary, as set forth by Canal 22
on its webpage: www.canal22.org.mx.
Mxico
143
144 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
1. Cinematografa.
1.1 Fidecine.
El FIDECINE entr en operacin en 2001. En el artculo 33 de la LFC, se
establece la creacin del FIDECINE como un fideicomiso dependiente de la
Secretara de Educacin Pblica, cuyo objeto es el fomento y la promocin
4 Pgina web oficial: http://www.ficg.mx/
5 Pgina web oficial: http://www.moreliafilmfest.com
146 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
a) Sujetos de Apoyo
Las personas fsicas y/o morales mexicanas dedicadas a una o a varias de
las actividades cinematogrficas, incluidas las de produccin, distribucin,
comercializacin y exhibicin de pelculas cinematogrficas nacionales, que
soliciten el apoyo financiero del FIDECINE, de acuerdo a lo previsto en las
reglas aplicables.
Para la obtencin de un nuevo apoyo econmico, los sujetos de apoyo adems
de comprobar la correcta aplicacin de los recursos del proyecto anteriormen-
te aprobado, acreditarn nuevamente la solvencia econmica para concluirlo
en las fechas comprometidas.
Los apoyos a recibir por cualquier sujeto de apoyo en un ao calendario deter-
minado, no podrn superar el 10% del patrimonio del FIDECINE.
b) Tipos de apoyo y operaciones
Los tipos de apoyo que el FIDECINE otorgue, podrn ser va:
- Capital de riesgo.
- Crdito, Garantas y Crdito Extraordinario.
- Estmulos.
Slo podr otorgarse un apoyo financiero a los sujetos de apoyo mediante
cualesquiera de las modalidades aqu referidas, de conformidad con los re-
querimientos del proyecto y con base en el cumplimiento de los requisitos y
criterios de seleccin establecidos por el propio FIDECINE.
Los requisitos de referencia y criterios de seleccin se encuentran descritos
dentro de las Reglas de Operacin e Indicadores de Gestin y Evaluacin del Fondo
de Inversin y Estmulos al Cine, emitidas por el pleno del Comit Tcnico del
Fondo de Inversin y Estmulos al Cine en sesin extraordinaria celebrada
Mxico 147
d) Mecnica de operacin
El FIDECINE publicar cada ao en dos diarios de circulacin nacional, una
invitacin abierta a las personas fsicas y morales (sujetos de apoyo), de na-
cionalidad mexicana, a presentar proyectos cinematogrficos de largometraje
susceptibles de otorgamiento de apoyo financiero a su produccin.
Publicada la invitacin, los sujetos de apoyo debern acudir a las oficinas del
FIDECINE. Los sujetos de apoyo debern entregar la hoja de registro debi-
damente requisitada y las carpetas que contengan el material anteriormente
referido.
Slo los proyectos que cumplan con todos los requisitos establecidos en la
Invitacin, en su caso, sern sometidos a consideracin del Comit Tcnico
del FIDECINE, y su fallo ser inapelable.
El Secretario Ejecutivo se encargar de informar a los sujetos de apoyo, por
escrito, las decisiones del Comit Tcnico y una vez aprobado el proyecto,
el Comit Tcnico emite un acuerdo en el que determina el tipo y monto
de apoyo a otorgar. A partir de dicha notificacin el sujeto de apoyo deber
formalizar el contrato correspondiente dentro de un plazo de seis meses si es
un proyecto nacional o doce si es internacional.
148 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
1.2 FOPROCINE.
La situacin del cine mexicano se agrav por los efectos de la crisis econmica
de 1995 y lleg casi a su extincin, al producirse en 1997 nicamente 9 largo-
metrajes, la cifra ms baja desde 1932.
A fin de buscar una salida a esta difcil situacin, el Ejecutivo Federal cre
en diciembre de 1997, el FOPROCINE, que tiene por objeto apoyar peras
primas y un cine ms autoral y experimental.
El FOPROCINE est encaminado al fomento, apoyo y difusin de la cine-
matografa mexicana de calidad, artfice fundamental para la proyeccin de
nuestra cultura e identidad nacional. Es un fideicomiso a cargo del IMCINE,
y su misin es fomentar el desarrollo de la actividad cinematogrfica nacional
de calidad no contemplada en el artculo 33 de la LFC, con la participacin
de la comunidad de cineastas, a fin de satisfacer las necesidades y requeri-
mientos culturales y de entretenimiento de la poblacin en general, a travs
del apoyo a la produccin de largometrajes.
a) Sujetos de Apoyo
Las personas fsicas y/o morales mexicanas cuyo inters u objeto social sea
producir largometrajes cinematogrficos de calidad que presenten un proyec-
to susceptible de apoyo por el FOPROCINE.
c) Otorgamiento de apoyos
El otorgamiento de apoyos va capital de riesgo para la produccin o pospro-
duccin de largometrajes, podr ser hasta por el monto que la Comisin Con-
sultiva proponga al Comit Tcnico, sin que exceda de la cantidad de siete
millones de pesos, suma que podr representar ms del 49% de la inversin
total en el proyecto cinematogrfico, pero nunca mayor al 80%, previa reco-
mendacin de la Comisin Consultiva y autorizacin del Comit Tcnico.
Adicionalmente, como un reconocimiento a la eficiencia en la produccin
cinematogrfica, el FOPROCINE podr otorgar a los proyectos que se con-
cluyan conforme al tiempo y presupuesto establecido en el contrato principal,
el 10% de los puntos porcentuales que ostente el FOPROCINE.
En los casos de apoyos va crdito y montos de garantas para la produccin o
postproduccin de largometrajes, estos podrn ser hasta por el monto que el
Comit Tcnico autorice, sin que exceda de dos millones de pesos, con una
tasa anual del 4% anual revisable.
Los proyectos en los que se otorguen apoyos va capital de riesgo, crdito y/o
garantas contarn con un plazo de dieciocho meses para concluir el proyecto
de produccin
150 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
d) Mecnica de operacin
Previa convocatoria pblica que realice el FOPROCINE, los solicitantes de-
ben acudir a la Direccin de Apoyo a la Produccin Cinematogrfica del Ins-
tituto Mexicano de Cinematografa, ubicada en Insurgentes Sur 674, 2o. piso,
colonia Del Valle, Delegacin Benito Jurez, cdigo postal 03100, Mxico,
Distrito Federal, para obtener el formato Hoja de Registro que correspon-
da, para integrar el proyecto de produccin cinematogrfica con la finalidad
de ser considerados en la seleccin de beneficiarios.
a) Solicitud de Apoyo
Para ser elegible a los apoyos del FONDO PROAUDIOVISUAL se debe cum-
plir con los requisitos y criterios establecidos en los Lineamientos para el Otor-
gamiento de Apoyos a Proyectos de la Industria Cinematogrfica y Audiovisual, Fon-
do PROAUDIOVISUAL, emitidos por el Comit Tcnico del Fideicomiso
Pblico PROMXICO en sesin ordinaria de 2012, disponible en la pgina
web http://www.promexico.gob.mx.
El Subcomit de Apoyo a la Industria Cinematogrfica y Audiovisual como
instancia regulatoria del FONDO PROAUDIOVISUAL analizar los proyec-
tos de Produccin evaluados y verificar la viabilidad del otorgamiento de los
apoyos en trminos de su congruencia con las prioridades de la Industria y de
Mxico 151
6 Recepcin de solicitudes: Primer perodo del primer da hbil de febrero hasta el ltimo da hbil de abril.
Segundo perodo del primer da hbil del mes de julio hasta el ltimo da hbil del mes de agosto.
152 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
1. Introduction
This document is intended to supplement and update another that was pub-
lished by the same authors in 20111, addressing only cinematographic works. On
this occasion, some notes are included on the production of works for television.
2. Cinematography
155
156 Current mechanisms for financing audiovisual content in latin america 2
only respect for the law but also a genuine commitment to the Peruvian cin-
ematographic industry.
Pursuant to this Act, the Ministry of Culture is the Peruvian entity in charge of
conducting these competitive selection processes in order to choose Peruvian
cinematographic projects and works8.
The current competitive selection process system9 strives to establish transpar-
ent, predictable mechanisms, which is why it is mandatory for the Ministry of
Culture to prepare and disclose the Annual Plan of Activities and Competitive
Selection Processes for Cinematographic Projects and Works, which contains
the titles of the competitive selection processes, their descriptions, the number
7 For the purposes of this Act, foreigners residing in Peru for more than three years will be treated as nationals.
8 Pursuant to the Regulation on the Organization and Functions of the Ministry approved through Supreme
Decree N 005-2013-MC, the Deputy Minister for Cultural Assets and Industries, through the General Arts
and Cultural Industry Administration and its Audiovisual, Phonographic and New Media Administration
are in charge of these Competitive Selection Processes.
9 We recommend that the reader reviews the Vice-Ministerial Resolution N 050-2013-VMPCIC-MC pro-
mulgated on August 5, 2013, entitled Regulations and Procedures for Competitive Selection Processes and
Cinematographic works and projects organized by the Ministry of Culture; as well as Ministerial Resolution
N 206-2013-MC which approves the Categories and Stages of Cinematographic Projects and the standard
durations of the competitive selection processes organized by the Ministry of Culture.
158 Current mechanisms for financing audiovisual content in latin america 2
of prizes and the amount of the financial contributions, together with budget
availability, dates and other details1011.
The competitive selection process system is grounded on the Bases, which must
be approved by the Ministry of Culture, whereby the process is launched through
the following stages:
a) Public Call for Projects12
b) Preparation and Dismissal of Consultations
c) Presentation of Records and Dossiers
d) Review of the Records and Dossiers
e) Assessment and Classification of the Records and Dossiers
f) Announcement of the Winners
10 Through Ministerial Resolution N 027-2012-VMPCIC-MC issued on April 19, 2012 the Annual Plan for
2012 was approved. It will be of much interest to the reader to examine the annex with these competitive
selection processes and activities.
11 This consequently changes the somewhat inefficient formula used by the previous competitive selection
process system, which established in advance the schedule of competitive selection processes for the year,
awarding prizes on each occasion to three projects, based on the following fixed economic structure:
Prizes (US$)
First Place 357,000.00
Second Place 258,000.00
Third Place 205,000.00
12 This Act is implemented through the publication in the Peruvian Government Gazette of the Resolution
approving the bases and the disclosure of the full bases through the institutional Portal of the Ministry of
Culture, through which the public announcement is released.
13 Ministerial Resolution N 206-2013-MC promulgated on July 22, 2013.
Peru 159
than 75 minutes) as well as for short features (projection times of less than 20
minutes), in their various categories (Documentary, Fiction, Experimental and
Childrens Films).
14 Company incorporated compliant with the Law and duly registered with the Ministry of Culture, which
engages in one or more cinematographic production, distribution, programming and exhibition activities, or
others related or connected to these activities Item e) Glossary in Ministerial Resolution N 206-2013-MC
promulgated on July 22, 2013.
160 Current mechanisms for financing audiovisual content in latin america 2
3. Television
15 Ruled by Legislative Decree N 776 and its Sole Ordered Text approved through Supreme Decree N 156-
2004-EF, published on November 15, 2004. Its Article 57 item c) imposed a 10% tax on cinematographic
shows, which is applied to the related ticket price.
16 Rule promulgated on July 15, 2004.
17 Rule promulgated on January 11, 2005.
18 Eighth Supplementary Final Provision of the Radio and Television Act.
19 The Peruvian Radio and Television Institute (IRTP) was established through Legislative Decree N 829.
Peru 161
20 In addition to Peru, the CAN members are Bolivia, Colombia and Ecuador.
21 In the 2013 Annual Activities Plan for Competitive Selection Processes for Projects and Works conducted by
the Ministry of Culture, the Competitive Selection Process for full-length documentaries made for television,
with a total price of approximately US$ 70,000.00, can be found under the title DocTv Latinoamerica.
Peru
1. Introduccin.
2. Cinematografa.
2.1. Consideraciones generales.
La Ley 263702, denominada Ley de Cinematografa Peruana, otorga a la pro-
duccin nacional apoyo econmico no reembolsable para los proyectos y las
obras seleccionados en los Concursos promovidos por el Estado, a travs del
Ministerio de Cultura3.
Esta Ley cambi sustancialmente el criterio de apoyo a la produccin nacional,
pues, a diferencia de las normas predecesoras, excesivamente proteccionistas,
1 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica, Latin American
Training Center, Rio de Janeiro, Brasil, 2011, Oportunidades de Financiamiento E Incentivos para la
Produccin de Obras Cinematogrficas: Per pginas 159 a 175.
2 Norma promulgada el 18 de octubre de 1994 y publicada en el Diario Oficial el 23 de octubre del mismo ao.
3 Entidad creada mediante la Ley 29565 promulgada el 21 de julio de 2010.
163
164 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
7 Para efectos de esta ley los extranjeros con ms de 3 aos de residencia en el Per tendrn el tratamiento
nacional.
8 De acuerdo al Reglamento de Organizacin y Funciones del Ministerio aprobado mediante Decreto Supre-
mo 005-2013-MC, el Viceministerio de Patrimonio Cultural e Industrias Culturales, a travs de la Direccin
General de Industrias Culturales y Artes y su Direccin del Audiovisual, la Fonografa y los Nuevos Medios
son los encargados de los Concursos.
9 Recomendamos al lector revisar la Resolucin Viceministerial No. 050-2013-VMPCIC-MC promulgada el
6 de agosto de 2013, denominada Normas y Procedimientos de los Concursos de Proyectos y Obras Cin-
ematogrficas organizados por el Ministerio de Cultura; as como la Resolucin Ministerial No. 206-2013-
MC que aprueba las Categoras y Etapas de los Proyectos Cinematogrficos y los estndares de duracin de
los concursos organizados por el Ministerio de Cultura.
166 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
a) Convocatoria Pblica;12
b) Formulacin y Absolucin de Consultas;
c) Presentacin de expedientes;
d) Revisin de expedientes;
e) Evaluacin y Calificacin de expedientes;
f) Declaracin de ganadores.
La Calificacin y evaluacin de los proyectos est a cargo de un Jurado, el cual
es elegido por el Ministerio de Cultura entre ternas de especialistas en cine-
matografa y audiovisual, previamente seleccionadas por sorteo ante notario
pblico.
14 Empresa constituida de acuerdo a Ley y debidamente Registrada en el Ministerio de Cultura, que realice
una o ms actividades de produccin, distribucin, programacin y exhibicin cinematogrfica u otras con-
exas o coadyuvantes a estas actividades Literal e) Glosario contenido en la Resolucin Ministerial No. 206-
2013-MC del 22 de julio de 2013
168 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
3. Televisin.
1.1. Consideraciones generales.
La prestacin de servicios de radiodifusin, sonora y por televisin de seal
abierta se encuentra regulada por la Ley 2872816, denominada Ley de Ra-
dio y Televisin y su reglamento aprobado mediante el Decreto Supremo
005-2005-MTC17.
A diferencia de la actividad cinematogrfica, ya reseada en el acpite que
antecede, el Estado no ha contemplado normativamente mecanismos para
establecer apoyo econmico a la produccin nacional de contenidos para la
televisin.
No obstante ello, la generacin de oportunidades econmicas se da en la
medida que la citada norma legal contempla la obligacin de los titulares de
servicios de radiodifusin de establecer una produccin nacional mnima del
30% de su programacin18.
15 Normado por el Decreto Legislativo 776 y su Texto nico Ordenado aprobado mediante Decreto Supremo
N 156-2004-EF, publicado el 15 de noviembre de 2004. En el artculo 57 inc c) se establece la tasa del 10%
del impuesto para espectculos cinematogrficos, la cual se aplica sobre el valor de la entrada para presenciar
el espectculo.
16 Norma promulgada el 15 de julio de 2004.
17 Norma promulgada el 11 de enero de 2005.
18 Octava Disposicin complementaria y final de la Ley de Radio y Televisin.
Peru 169
19 El Instituto de Radio y Televisin Peruana (IRTP) fue creado mediante el Decreto Legislativo 829.
20 Adems de Per, forman parte de la CAN Bolivia, Colombia y Ecuador.
21 En el Plan Anual de Actividades de Concursos de Proyectos y Obras para el 2013 del Ministerio de Cultura,
se encuentra Bajo la Denominacin DocTv Latinoamrica, el Concurso de Documentales largos para la
Televisin con un premio total de aproximadamente US$ 70,000.00.
Puerto Rico
1. Introduction
U nder Puerto Rican law, there are two main mechanisms available for
financing audiovisual content in a variety of formats. The Puerto Rico Film
Industry Economic Incentives Act (Law N 27 promulgated on March 4, 2011),
hereafter referred to as the Act in this article) strives to provide an appropriate
framework for the ongoing development of the cinematographic industry and
other related activities, and in addition, to offer tax incentives in order to attract
foreign investments.
This Act is the successor to the Film Industry Incentive Act (Law N 362 pro-
mulgated on December 24, 1999), which similarly granted a set of tax incentives
to investors, producers and developers of projects related to the film industry.
This Act will remain in effect for approximately seven years, unless it is extend-
ed or replaced by some other piece of legislation, given that the government
policy to date has favored encouraging the audiovisual industry with this type
of incentive. With regard to the sources of the images, the production and plat-
forms for the activities for which incentives are offered, the language of the Act
is broad-ranging.
During 2012, this Act was amended in order to offer more competitive and at-
tractive incentives for the production of film and television projects in Puerto
171
172 Current mechanisms for financing audiovisual content in latin america 2
Rico. These amendments also sought to enhance the skills of Puerto Ricans
working in the audiovisual industry through setting up a Film Industry Training
Fund in Puerto Rico.
Furthermore, Puerto Rico also has as a Cinema Guild Development Fund,
which is designed to provide direct financing for domestic Film Projects. As it is
the most important tool currently available to the audiovisual industry which is
open directly to foreign investors, much of this article will focus on outlining the
various facilitating mechanisms provided by this Act.
The main source of funding provided by law is the tax credit. Said credits may be
applied against the income tax liability of the Puerto Rican by the taxpayer. The
project or entity holding the credit may apply it against income tax due in Puerto
Rico or may sell it to a third party to generate additional capital which may be
used to finance the project in question. In Puerto Rico, this type of credit is usu-
ally sold at a discount of 8% to 15% of its value.
Subject to the limitations described in the Act, said tax credits will be made avail-
able at the start of the activities covered by the decree, in the case of Film Proj-
ects. Funds for Infrastructure Projects are available once said infrastructure is
complete and ready for use, as certified by the Puerto Rican Trade and Economic
Development Secretary. The Puerto Rican Trade and Economic Development
Secretary has delegated many of the functions conferred on the agency to the
Puerto Rico 173
Film Projects and Infrastructure Projects may enjoy special tax treatment in the
course of each project. Film Project producers and the developers of film-relat-
ed Infrastructure Projects and studios have the right to preferential treatment
when complying with the requirements set out by this Act. Studios eligible for
tax exemptions on their operations must have a budget of at least U$50 million,
although studios with smaller budgets may generate tax credits for Infrastructure
Projects). Studio operators may be granted special tax treatment for a period of
fifteen years, with a possible ten-year extension for large studios (as defined by
this Act).
Decree concessionaires may be subject to a fixed income tax rate of 4% to 10%,
while their dividends may be 100% exempt from income tax. Furthermore, they
may be granted a 90% exemption from municipal property taxes and a 100%
exemption from other municipal tax rates. Moreover, goods acquired for use
174 Current mechanisms for financing audiovisual content in latin america 2
in eligible projects may also be granted full tax exemptions on their use and
consumption.
Amounts paid to Qualified Non-Residents are subject to a special fixed income
tax rate of 20% of the total amounts received as wages, benefits, allowances or
fees paid for services rendered to Film Projects in Puerto Rico. A Qualified
Non-Resident means producers, directors, writers and on-camera talent (includ-
ing doubles and stunt persons) not resident in Puerto Rico. However, extras,
walk-ons and bit players are not included in this definition.
The Act also establishes Film Development Zones in Puerto Rico, where certain
projects may enjoy a higher annual tax credit ceiling, as stipulated by this Act. In
these Zones, a 100% exemption may be granted on fiscal stamps and rights re-
lated to the preparation, presentation and registration of title deeds with the Im-
movable Asset Registry. These Zones are designated by the Puerto Rican Trade
and Economic Development Department, although the Act required the first of
these Zones to be established in San Juan, the capital of Puerto Rico, on tracts of
land designated by this municipality. With the agreement of the owner(s) of the
land in question, the Lead Developer may submit an application to the Puerto
Rican Trade and Economic Development Department requesting that a specific
geographic area be designated a Film Development Zone.
Eligible production activities or Film Projects are: full-length features; short fea-
tures; documentaries; series in episodes, mini-series and similar television pro-
grams (including pilots); music videos; local and international advertisements;
video games; shows recorded live; recordings of original or dubbed sound tracks
for any of the above; and television projects, including but not limited to reality
shows, interviews, news, games, entertainment, comedy and variety shows, as
well as childrens programs.
Also eligible are advertising campaigns and the post-production stages of one or
several Film Projects, whenever compliant with the following:
Clustered under a single contract or purchase order with total produc-
tion spend in Puerto Rico of at least $100,000; and
Each project complies individually with the other requirements stipu-
lated in the Act.
Puerto Rico 175
Fees paid to Qualified Non-Residents for services rendered in Puerto Rico may
generate a credit of up to 20% of the spend, which is in contrast with the flat rate
income tax of 20%, to which these payments are subject. The payer must deduct
and withhold tax on all income, depositing it with the Government.
Although the Act establishes that the credits are available at the start of the ac-
tivities covered by the decree, the use of 50% of these credits may begin during
the tax year in which an auditor (who must be a certified public accountant au-
thorized in Puerto Rico, hired by the concessionaire) certifies that 50% or more
of the production spend in Puerto Rico has been disbursed, and the Cinema
Guild confirms compliance with all other provisions applicable by law. Never-
theless, even if all the amounts have not been disbursed as required by the Act,
50% may be advanced once the decree has been obtained, if acceptable collateral
is provided. The remaining 50% of the credits are available during the tax year in
which the auditor certifies that all production expenses in Puerto Rico have been
settled, in compliance with the Act.
It should be noted that a production project may be able to finance more than a
third of its costs through this tax credit mechanism by selling the tax credits that
it generates.
The credits granted by the Puerto Rico Government are generally limited to
U$50 million a year, although this ceiling may be raised under certain circum-
stances to U$350 million. On the other hand, credits generated through pay-
ments made to Qualified Non-Residents are not subject to an annual limit.
a) F
or Filming Projects, payment of rights at 1% of the production expen-
ditures in Puerto Rico, giving rise to the tax credits (up to a ceiling of
U$250,000).
b) Furthermore, the Filming Project must pay 1% of the production costs in
Puerto Rico giving rise to tax credits, disbursed for each off-camera tech-
nical or creative person (below the line), when that person is a Qualified
Non-Resident.
c) Auditing Costs: The Act establishes that the decree concessionaire must
hire an Independent Certified Accountant licensed to practice in Puerto
Rico in order to present a report certifying the cash amounts disbursed
in order to underwrite the production costs in Puerto Rico, in addition
to calculating the tax credits. The Auditor must be approved by the Puer-
to Rican Trade and Economic Development Secretary.
d) Collateral: In order to advance half the tax credits for Filming Projects
and Infrastructure Projects generating credits through the purchase of
machinery and equipment, a surety bond or collateral must be provided
178 Current mechanisms for financing audiovisual content in latin america 2
that ensures the Puerto Rican Government will recover the credits in
case of any default.
2. Cinema Fund
The Cinema Guild manages the Cinema Guild Development Fund, or the Cine
Fund for financing and promoting cinematographic production in Puerto Rico.
This Fund was diversified in 2006 in order to introduce new Puerto Rican cine-
matographic support programs.
The Cinema Fund may finance a percentage (up to 80% or U$1.2 million, which-
ever is smaller) of the production budget of a cinema project, in the form of
a loan. This is intended to simulate the development and expansion of cinema
productions in Puerto Rico. The Cinema Guild imposes conditions and re-
quirements for this type of financing. Noteworthy among the requirements es-
tablished in order to benefit from the Cinema Fund is that the applicant entity
must be incorporated under the laws of the AssociatedFreeState ofPuerto Rico
or may be a foreign entity, and authorized to do business in Puerto Rico. Fur-
thermore, its shareholders, directors, partners, officers and /or agents must have
resided officially in Puerto Rico for at least three years. This does not prevent
an entity from entering into co-production agreements with other countries in
order to improve distribution opportunities and, with the project approved, to
receive financing in proportion to the percentage of the creative stake held by
Puerto Rico. For co-productions, the total amount that may be financed by the
Cinema Guild through the Fund may not exceed 80% of the restated production
budget contribution incurred by the local Film Entity.
According to information released by the Cinema Guild, the Special Fund cur-
rently receives U$3.3 million each fiscal year in quarterly disbursements, in or-
der to provide financial backing for Filming Projects that comply fully with the
Act, and that in turn develop, drive and encourage a good quality local cinema
industry.
****
This article is based on the laws and regulations of Puerto Rico in effect on Oc-
tober 22, 2013.
Puerto Rico
1. Introduccin.
179
180 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
3. Fondo de Cine.
La Corporacin de Cine administra el Fondo de la Corporacin para el De-
sarrollo del Cine o Fondo de Cine para los fines de financiar e incentivar la
produccin cinematogrfica de Puerto Rico. Este fondo fue diversificado en
el ao 2006 para crear nuevos programas de apoyo a la produccin cinemato-
grfica puertorriquea.
El Fondo de Cine podra financiar un porcentaje (hasta un 80% o $1.2 mi-
llones, la cantidad menor) del presupuesto de produccin de un proyecto
cinematogrfico a modo de prstamo. Tiene como propsito estimular el de-
sarrollo y la expansin de las producciones cinematogrficas de Puerto Rico.
La Corporacin de Cine impone condiciones y requisitos para este tipo de
financiacin. De ah que entre los requisitos para beneficiarse del Fondo de
Cine podemos distinguir que la entidad que solicita debe estar constituida
bajo las leyes del Estado Libre Asociado de Puerto Rico o ser extranjera y
estar autorizada para realizar negocios en Puerto Rico. Adems, sus accionis-
tas, directores, socios, oficiales y/o agentes deben contar con por lo menos
tres aos de residencia oficial en Puerto Rico. Esto no impide que la entidad
pueda obtener un acuerdo de coproduccin con otro pas para mejorar sus
oportunidades de distribucin y que, de ser aprobado el proyecto, se otor-
gue una financiacin proporcional al por ciento de participacin creativa de
Puerto Rico. En el caso de coproducciones, el total que podr ser financiado
por la Corporacin de Cine con cargo al Fondo, no exceder el ochenta por
ciento de la aportacin al presupuesto de produccin ajustado en que incurra
la Entidad Flmica local.
Segn informacin divulgada por la Corporacin de Cine, en la actualidad el
Fondo Especial recibe $3.3 millones por ao fiscal en desembolsos trimestra-
les para apoyar financieramente a proyectos flmicos que cumplan a cabalidad
con la ley y a su vez desarrollen, impulsen y fomenten una industria de cine
local de calidad.
****
El presente escrito est basado en las leyes y reglamentos de Puerto Rico vi-
gentes al 22 de octubre de 2013.
Dominican
Republic
By Jaime R. Angeles
O ver the last three years, the Dominican Republic has passed legislation
to create incentives for concept development, production, distribution,
screening and training in the film, audiovisual and related industries. The
legislation consists of two laws and an implementing regulation to reinforce the
implementation of existing legal provisions1.
For many years, the film sector had been asking for clear rules and incentives to
be established, including making funds available to enable certain audiovisual
projects to be developed. In this article, we intend to outline those opportunities
that audiovisual producers in the Dominican Republic already enjoy.
In this article we shall cover everything related to the Fondo de Promocin Cine-
matogrfica (FONPROCINE - Film Promotion Fund), but we shall also outline
other important agencies established by law such as the Direccin General de Cine
(DGCINE - Directorate-General for Film)2 and the Consejo Intersectorial para la
Promocin de la Actividad Cinematogrfica (CIPAC Inter-sectorial Council for
the Promotion of Film-making). These bodies regulate and approve the mech-
anisms for accessing the fund, grant the Permiso nico de Rodaje (Sole Filming
Permit) and act as conduits for all film-making incentives, including the Crdito
1 Law 108-10 of 29 July 2010 on the Fomento de la Actividad Cinematogrfica en Repblica Dominicana
(Encouraging Film-making in the Dominican Republic); Law 257-10 of 15 November 2010 which amends
Law 108-10; Implementing Regulation No. 370-11 for implementing the laws on Encouraging Film-making
in the Dominican Republic.
2 Direccin General de Cine de Repblica Dominicana, http://www.dgcine.gob.do/
189
190 Current mechanisms for financing audiovisual content in latin america 2
Fiscal Transferible (Endorsable Tax Credit) and the temporary import of any
equipment and goods that might be needed for filming.
The above-mentioned CIPAC acts as a governing body for DGCINE. It is made
up of various ministries (Culture and Tourism), the Direccin General de Impues-
tos Internos (Directorate-General for Internal Revenue), as well as an interesting
grouping of private sector organisations, such as academic film institutions, ex-
hibitors, distributors and film professionals. Each holds an honorary position
and they cannot access any of the incentives or assistance provided by FON-
PROCINE for as long as they remain in office. The body is designed to be flexi-
ble, which includes the possibility of having international film advisers.
3 http://dedominicanos.com/Arte/Peliculas_Dominicanas/index.html
4 http://www.listin.com.do/entretenimiento/2007/2/21/3942/Manuel-Corripio-empedernido-optimista-del-
cine-dominicano
Dominican Republic 191
5 http://www.pinewoodgroup.com/our-studios/dominican-republic/pinewoo d-
indomina-studios
192 Current mechanisms for financing audiovisual content in latin america 2
then collected by the relevant authorities. Secondly, 100% of the revenue gen-
erated by the Impuesto sobre la Transferencia de Bienes Industrializados y Servicios
(ITBIS - equivalent to VAT)6, which is due equally on the sale and rental of films
in establishments dedicated to this business and on the sale of products inside
cinemas, or revenue generated by any other tax that might replace ITBIS.
Any investments using FONPROCINE funds, arising from transactions, finan-
cial returns, the sale or liquidation of the above-mentioned investments and any
other resources that might be generated, capitalised or reserved by FONPRO-
CINE, will also constitute part of the fund.
This fund may also be financed through donations and national and internation-
al contributions, through any penalties that are imposed in accordance with the
law, through the sale of editions, publications and other material produced by
the fund, as well as through any other income stream (whether that be public
funds or income generated by the Fund itself) that might arise.
6 This tax has the same connotation and reach as VAT in other countries.
Dominican Republic 193
a) P
roject development for feature-length fiction, animation and documen-
tary films;
b) Production of feature-length fiction, animation or documentary films;
c) Production of medium-length and short fiction, animation or documen-
tary films;
d) Distribution of fiction, animation or documentary films;
e) Professional training financed through grants, internships and resi-
dencies, support for educational institutions and training programme
initiatives;
f) Programmes preserving and promoting national film and audiovisual
heritage;
g) Dominican films participating in international film festivals and markets;
h) Development of festivals and viewings of national and international
films.
According to the Ley de Cine (Film Law) a film is classified as Dominican when
it has a running time of at least seventy (70) minutes and it is made as a sole pro-
duction or a co-production, which may include foreign capital, as long as it fulfils
the following minimum requirements:
We should mention that the Dominican legislation does not apply to audiovi-
sual productions covering news stories, award ceremonies or shows, or to pro-
ductions that constitute advertising, or to productions of an institutional nature,
with an educational purpose or of a pornographic nature.
The issue of accessing FONPROCINE funds is very much focused on establish-
ing that a project has a sufficient Dominican identity, although the funds can be
accessed by legal entities or individuals resident in the country, or by foreign in-
dividuals who have resided in the country for over five years. In the case of legal
entities, the formation of a Dominican company would confer on it Dominican
nationality.
The legal entity or individual applying for FONPROCINE funding must be
registered on the Sistema de Informacin y Registro Cinematogrfico Dominicano
(SIRECINE - Dominican Film Information System and Film Registry), the in-
formation service where the information and registers pertaining to the agents
and sectors involved in the Dominican film industry are kept.
Any candidates with existing FONPROCINE-funded projects still outstanding
when the competition opens or any candidates who have breached the terms of
previous fund allocations are disqualified from benefiting from further FON-
PROCINE resources.
It is very important to stress that the Council - CIPAC - can authorise FONPRO-
CINE to allocate repayable funds through running competitions in the same
categories that we have already mentioned above. The competition being run for
this purpose must stipulate clearly the funding terms, the conditions for repaying
FONPROCINE, the performance guarantee and the completion guarantee.
Dominican Republic 195
All funding granted through FONPROCINE must have proven, by means of the
stipulated documentation, that funding is already available to cover at least 30%
of the total project budget. There can be no question of funding 100% of the
audiovisual production.
a) To add the national film logo to the audiovisual productions end credits.
b) To handover a copy of the production to the Cinemateca Nacional (Na-
tional Film Archive). This institution is responsible for providing stor-
age areas where film material of national and international significance is
preserved, and it has the specific mission to safeguard and make available
national and world film heritage.
c) T
o give DGCINE permission to use the film for film promotion activi-
ties in the Dominican Republic. Using the film in this way must not in-
terfere with the usual commercial exploitation of the film.
196 Current mechanisms for financing audiovisual content in latin america 2
We should point out that the following types of film or audiovisual productions
cannot benefit from the incentives provided for in this law:
Productions with linear content depicting real events, news items, sport
or shows.
Audiovisual productions that constitute advertising.
Audiovisual productions to raise the profile of an institution or its
services.
Productions that are primarily educational, for instruction or for train-
ing of any kind.
Productions that are mainly of a pornographic nature.
income tax return7 or it can be endorsed in favour of any individual or legal entity
for the same purpose. Through this credit, investors will have 100% of the real
value of their investments recognized so that it can be offset against the income
tax they pay to the Dominican tax authority.
The fact that this tax credit can be transferred (endorsed) facilitates private in-
vestment and financing for productions filmed in the Dominican Republic. It is
thought that it will be possible to obtain between 75% and 80% of the value of
the tax credit through financing offered by the local Dominican banking system.
Similarly, financial intermediaries can assist in finding outlets for the tax credit
certificates, which can also generate cash flow for producers and those responsi-
ble for film projects.
To apply the tax credit, all expenses directly related to the pre-production, pro-
duction and post-production of films and audiovisual productions must be cal-
culated, including the cost of procuring goods and services, hiring goods of any
kind, and contracting technical, artistic and administrative personnel from the
Dominican Republic and abroad, as long as these expenses are duly backed up
by invoices, receipts and/or relevant documentation. The production budget
must have prior authorisation from DGCINE.
A minimum investment of US$500,000.00 is required in order to benefit from
this tax credit. In cases where expenses incurred in individual projects imple-
mented by the same individual or legal entity do not reach the minimum expen-
diture threshold outlined above, it is possible under the law to aggregate various
audiovisual productions until the expenditure threshold is reached, as long as
these productions have been produced by the same individual or legal entity in
the course of the same tax year.
To benefit from the whole system of tax breaks in the Dominican Republic, it is
necessary to be someone who manages, encourages, promotes or develops films
and other audiovisual productions that fulfil the following requirements:
Recognizing how demanding the film industry is in terms of technology and new
talent, the law stipulates that, through a permit, DGCINE can lower the mini-
mum requirement for Dominican personnel in case the Dominican Republic is
unable to meet the demand for staff qualified to carry out the required roles, and
in this way the tax breaks can still be applied for.
Investors contributing towards the production of audiovisual projects in the Do-
minican Republic should bear in mind that up to 25% of the amount invested
will be offset against tax due on profits, and that the investment must be made in
cash, not through a shareholding or by issuing a debt security.
As regards corporate governance, both the investor and the producer must be
legal entities and the producers corporate purpose must be defined as Domin-
ican productions.
4. Conclusion
The new regulatory framework in the Dominican Republic promises to be a
source of many quality film productions, and better film productions, which will
attract many film-makers interested not only in shooting in Caribbean locations,
but also in taking advantage of the new incentive and funding mechanisms that
are available.
The Dominican Republic will benefit from wide-ranging technology transfer
and knowledge transfer (both in terms of quality and quantity), not to mention
the boost to creativity and the employment opportunities for skilled labour.
Repblica
Dominicana
199
200 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
6 Este impuesto tiene la misma connotacin y alcance que el IVA en otras naciones
Repblica Dominicana 203
los certificados, lo que tambin puede generar flujo de caja a los productores
y responsables del proyecto cinematogrfico.
Para la aplicacin del crdito fiscal, sern computados todos 1os gastos direc-
tamente relacionados con la preproduccin, produccin y posproduccin de
obras cinematogrficas y audiovisuales, incluyendo la adquisicin y contrata-
cin de bienes y servicios, el arrendamiento de bienes de cualquier naturaleza
y la contratacin de personal tcnico, artstico y administrativo nacional o
extranjero, siempre y cuando los mismos se encuentren debidamente res-
paldados por facturas, comprobantes y/o documentaciones pertinentes. El
presupuesto de la obra deber ser autorizado previamente por la DGCINE.
El monto de la inversin requerida para beneficiarse de este crdito fiscal es
de US$500,000.00. En los casos en que los gastos de proyectos individuales
realizados por una misma persona fsica o jurdica no alcancen el monto m-
nimo establecido precedentemente, la ley da la posibilidad que se acumulen
varias obras audiovisuales hasta completar dicho monto en los gastos ejecuta-
dos, siempre y cuando dichas obras hayan sido realizadas por la misma perso-
na fsica o jurdica en el transcurso de un mismo perodo fiscal.
Para acceder a todo el sistema del rgimen de incentivos fiscales en Repblica
Dominicana, debe ser alguien que administre, fomente, promueva o desarro-
lle pelculas cinematogrficas y otras obras audiovisuales que cumplan con lo
siguiente:
3. Conclusin
La nueva reglamentacin en Repblica Dominicana promete ser una fuente
de muchas y mejores producciones cinematogrficas de calidad que servir
de atraccin a muchos interesados, no solamente en filmar en localidades
caribeas, sino tambin en utilizar los nuevos mecanismos de incentivos y
financiacin que se ofrecen.
Repblica Dominicana gana una variedad en cantidad y calidad de transfe-
rencia de tecnologa y conocimientos, sin contar el estmulo a la creatividad y
colocacin de mano de obra especializada.
Uruguay
T he following four major systems for financing the film and audiovisual
industry are in effect in Uruguay:
Although each has its own specific regulations, all share the common purpose
of encouraging and supporting domestic film and audiovisual production, with
none of them structured to cover all the costs of bringing a work to completion.
These domestic funds are supplemented by the Ibero-American Assistance
Fund- IBERMEDIA; DOCTv Latin America, an incentive program for the pro-
duction and broadcasting of Latin American documentaries; and the Brazil
Uruguay Protocol.
1.1. Origin
The Film Development Fund was established through Article 7 of Law N 18,284
on May 16, 2008, and regulated by Decree N 473/008 on October 6, 2008.
211
212 Current mechanisms for financing audiovisual content in latin america 2
during the initial months of each year and includes production lines, while the
second occurs mid-year and includes development lines. The Festival, Showcase
and Training lines are included in both announcements.
In 2011, a competitive selection process was conducted for the first time for
projects co-produced with Brazil, under the aegis of the Co-Production Pro-
tocol signed with this country on October 5, 2010. This agreement provides
support for two projects per year, one with a majority stake held by each coun-
try. In 2013, one of the projects received the equivalent of U$100,000 in Uru-
guayan pesos awarded by the Uruguay Cinema and Audiovisual Institute, to the
Uruguayan producer holding a minority co-production stake, with additional
support consisting of an amount in Brazilian Reais equivalent to US$50,000 as
support from ANCINE. The other will receive support in Brazilian Reais equiv-
alent to US$150,000 from ANCINE, awarded to the Brazilian producer holding
a minority co-production stake.
For the non-competitive modes, the projects are analyzed by the Permanent Ex-
ecutive Commission (CEP) or the Release and Promotion Selection Commit-
tee, which serves as an Evaluation Committee that awards support in compliance
with the parameters established on the bases and objectives laid down by the Act
and the Annual Action Plan of the Uruguay Cinema and Audiovisual Institute.
Finally, for the third type of institutional actions, the Institute grants and imple-
ments support mechanisms considered strategic for this sector.
1.1. Origin
The Montevideo Socio-Audiovisual Program is operated by the Montevideo
City Hall, administered by the Montevideo Leasing Bureau. Established by De-
cree N 30,820 on July 1, 2004, in order to contribute to the development of
the national audiovisual sector, it provides funding for local audiovisual pro-
ductions throughout the production, distribution and marketing stages, regard-
less of their segment (cinema or television) and format duration.
assistance lines for full-length features (fiction and documentary), and the sec-
ond for release and exhibition.
The projects must be presented by Uruguayan producers, with directors who
may be Uruguayan or foreign, as long as they reside in Uruguay for at least five
years.
Furthermore, this Fund awards assistance for Showcases whose programs must
include the screening of at least five full-length features or ten short features and
Film Festivals, with priority for events hosted in Montevideo.
2.1. Origin
This fund originated through an initiative of the Montevideo City Hall aimed
at promoting audiovisual production activities in Uruguay. It was originally es-
tablished on June 6, 1995, through a joint agreement among the City Hall, the
Ministry of Education and Culture (MEC) and private Uruguayan television
channels. This Fund now includes the Montevideo City Hall, public and private
cable television channels, and the Uruguay Cinema and Video Producers and
Directors Association.
Proposals may be submitted for Fiction projects with a screening time of at least
70 minutes and documentary projects with a screening time of at least 45 minutes.
3.1. Origin
The Cultural Incentive Funds were established by Articles 235 to 250 of Law N
17,930 on December 19, 2005, regulated by the Executive Branch in October
2007 (Decree N 364/2007), in order to underwrite projects in the fields of the
arts, cultural heritage and traditions throughout Uruguay. Their purpose is to
foster interaction, commitment and cooperation between the artistic and cultur-
al sectors (performers, institutions and cultural administrators) and the tax-pay-
ing private sector wishing to contribute with funding. For this purpose, the State
grants tax incentives to anyone who makes donations to cultural projects. This
mechanism allows the private sector to provide financial support for the cultural
sector in exchange for tax breaks. These benefits are returned through the issue
of tax credit certificates.
The announcement is issued in several sectors (audiovisual, music, theater, vi-
sual arts, dance, literature, museums, handcrafts, etc.) once a year in February.
The selection criteria focuses on projects that promote sustainability and devel-
opment of artistic and cultural output in Uruguay, and that are consistent with
the policy to generate international visibility while enhancing social inclusion.
three different funds: the Common Fund, the Sector Funds and Specific Projects
that have been approved by the Artistic and Cultural Projects Development and
Evaluation Council (CONAEF).
Donations made by companies paying Income Tax on Economic Activities and
the Capital Gains Tax allocated to projects classified as fostering artistic and cul-
tural development, are allowed to allocate 75% of the total amounts declared as
paid for such taxes. The remaining 25% may be declared as corporate expendi-
tures for all tax purposes.
The Artistic and Cultural Projects Development and the Evaluation Council
may transfer to the Common Fund up to 15% of the funds donated to Specific
Projects.
5. New Proposals
On October 29, 2013, the Executive Branch presented a Draft Bill to Parliament
on Audiovisual Communication Services, introducing major alterations to the
regulations and promotion of audiovisual media, with particular repercussions
Uruguay 219
221
222 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
a) concursables;
b) no concursables;
c) acciones institucionales.
Uruguay 223
6. Nuevas Propuestas.
Con fecha 29 de octubre de 2013, el Poder Ejecutivo elev al Parlamento un
proyecto de ley relativo a los Servicios de Comunicacin Audiovisual con
importantes cambios en la regulacin y la promocin de medios audiovisua-
les y con especial repercusin en la produccin televisiva. En este proyecto
se definen los conceptos de obra audiovisual y cinematogrfica, obra televi-
siva, ficcin televisiva, produccin independiente, coproduccin y produc-
cin nacional. Reconoce nuevas funciones al actual Instituto del Cine y el
Audiovisual del Uruguay y redistribuye algunas de sus funciones entre otros
organismos del Estado.
Sus ciento noventa y tres artculos regulan la actividad de los medios de co-
municacin y la funcin del Estado al respecto, destacndose de entre ellos y
con especial relevancia la produccin audiovisual y el deber del estado de pro-
mover el desarrollo de la capacidad de las industrias nacionales de contenidos
audiovisuales, promocionando la identidad cultural del pas, la produccin
nacional y su comercializacin al exterior.
Se crean cuotas de exhibicin de productos audiovisuales nacionales en la te-
levisin nacional y un fondo para la Promocin del Sector de Comunicacin
Audiovisual con el fin de fomentar y promover el desarrollo de la industria
audiovisual.
Tambin se fortalece la funcin del Ministerio de Industria, Energa y Mi-
nera en la actividad de los medios de comunicacin y en lo atinente a la
produccin y comercializacin de audiovisuales, manteniendo la actividad
desarrollada hasta el presente por otros organismos como el Ministerio de
Educacin y Cultura.
1. Television
1 This includes: (i) UHF television broadcasting; (ii) VHF television broadcasting; (iii) community television
as a not-for-profit public service; and (iv) national audiovisual production services broadcast through a sub-
scription broadcasting service. Each of these categories is defined and regulated by Venezuelan legislation.
2 Partially amended on 28/12/2010 and republished in the Official Journal of the Bolivarian Republic of Ven-
ezuela No. 39.610 on 07/02/2011.
3 A ruling which lays down Normas Tcnicas sobre los Criterios y Mecanismos para la Asignacin de los Recursos
del Fondo de Responsabilidad Social (Technical Rules on the Criteria and Mechanisms for allocating resources
from the Social Responsibility Fund), published in the Official Journal of the Bolivarian Republic of Venezuela
No. 38.253 on 18/08/2005; and a ruling which lays down the Normas Tcnicas para la Administracin del Fon-
do de Responsabilidad Social (Technical Rules on Administering the Social Responsibility Fund), published in
the Official Journal of the Bolivarian Republic of Venezuela No. 38.253 on 18/18/2005. The Social Responsibil-
ity Board is a professional body with various public powers, which was established under the Ley Resorteme.
4 A methodological guide to submitting projects to the Fondo de Responsabilidad Social (Social Responsibility
Fund). CONTATEL is the telecommunications regulatory body for Venezuela. It has regulatory powers over
network infrastructure (platform) and over content broadcast through the various networks.
231
232 Current mechanisms for financing audiovisual content in latin america 2
set out in general terms the types of audiovisual production that are eligible
for funding, the criteria and procedure for allocating funds, as well as the
modality and type of financial incentive that productions may receive.
The Ley Resorteme established the Fondo de Responsabilidad Social (FRS - So-
cial Responsibility Fund). It is administered as a ring-fenced resource which is
overseen by CONATEL, and any disbursements from the fund require the Di-
rectorios approval. The funding of projects designed to develop and encourage
national audiovisual production falls within the scope of the FRS aim and pur-
pose. The FRS is mainly financed from a tax paid by radio and television service
providers every quarter, which equates to 4% of net revenue from broadcasting
content, as well as from fines imposed on entities regulated by the Ley Resorteme.
them - obviously - is that the first type of funding requires the contribution to be
repaid to the FRS, whereas the second type does not.
Funds are allocated through the ongoing receipt of projects or through calls for
special projects launched by CONATEL, with the Directorios authorisation. In
general terms, this implies that the party interested in obtaining funding can sub-
mit an application to CONATEL at any time, or otherwise wait, respond to and
participate in any of the competitions launched by CONATEL.
The application must be accompanied by the project and it must meet certain
initial requirements laid down in the Technical Rules on the Criteria and Mech-
anisms for Allocating FRS Resources. In addition, the applicant must comply
with certain formalities, requirements and guarantees set out by CONATEL in
guides or instructions that are revised every so often. According to the Technical
Rules, no more than four months may elapse between the application and the
decision on whether or not to grant funding.
CONATEL is the body responsible for evaluating the projects based on certain
parameters set out in the Technical Rules. After this, CONATEL must submit a
report to the Directorio, so that the Directorio may announce a decision on fund-
ing. The Directorio may approve the total amount of funding requested or it may
approve only partial funding. Once the funding has been approved, the ben-
eficiary must sign a contract with CONATEL, which is the body responsible
for disbursing the funds. The Directorio is the body that approves the standard
contracts that will be signed and it may lay down in them certain implementa-
tion requirements, a schedule of expenditures, and the completion guarantee for
the project. The regulations grant CONATEL broad powers to inspect, control
and evaluate project implementation. The disbursements can be halted if the
beneficiary breaches the conditions under which the funding has been allocated.
In the case of competitions aimed at funding special projects, the call for propos-
als must be authorised by the Directorio and issued by CONATEL. CONATEL
is responsible for establishing the specific rules, conditions and formalities that
apply to project evaluation and funding decisions in each competition, in line
with the Directorios authorisation.
4. Film
The Venezuelan film sector is regulated mainly by the Ley de Cinematografa Na-
cional (The National Film-making Law - Ley de Cine for short)6, the Reglamen-
6 The Official Journal of the Bolivarian Republic of Venezuela No. 5.789 (Extraordinary) of 26/10/2005
(Republished due to material error). Originally published in the Official Journal No. 38.281 of 27/09/2005.
234 Current mechanisms for financing audiovisual content in latin america 2
7 The Official Journal of the Bolivarian Republic of Venezuela No. 37.733 of 16/07/2003.
8 The Official Journal of the Bolivarian Republic of Venezuela No. 39.882 of 13/03/2012.
Venezuela 235
When CNAC only grants partial funding that does not cover the full cost of
the project, before any resources are handed over beneficiaries are required to
demonstrate that they have sufficient resources of their own or sufficient addi-
tional sources of funding. They may demonstrate that they have the necessary ad-
ditional resources available to implement the project by providing evidence such
as production-sharing contracts, co-production contracts, loan contracts, etc.
CNACs financial contributions must be spent entirely in Venezuela, with the
exception of any expenses incurred in processes that are not available in Vene-
zuela, or processes that are available but are not of sufficient quality in CNACs
opinion. In this case, it may be authorised to spend up to 20% of CNACs con-
tribution on processes carried out abroad. This may rise to 100% in the case of
activities relating to the completion of film projects (completion, post-produc-
tion, and transfer from digital to cinema film format). In addition, CNAC may
also exempt costs incurred in shooting abroad, allowing up to 10% of its funding
to be spent in this way.
a) Subsidy
Through this type of incentive, CNAC grants funding without any ob-
ligation to reimburse the amounts paid, provided that the beneficiary
complies with the obligations attached to the subsidy.
In the case of the Development of the Screenplay and the Production
Design for Animation categories, the level of funding that CNAC may
contribute is defined in each case by CNAC itself. In the case of the
Development of Film Projects category, CNAC may contribute up to
a maximum of 50% of the amount budgeted for film development. As
regards the other activities relating to the Production of Short, Medi-
um-length and Feature-length Films, CNAC defines in each case the
percentage that it will contribute as a subsidy, and which part will be
subject to CNAC receiving a percentage of the revenue generated from
the commercial exploitation of the production (a financial interest).
This depends on the scale of the costs set out in the production bud-
get in each particular case compared to the average costs that CNAC
has established for this class and type of national production (based on
technical studies undertaken periodically for this purpose).
In the case of Short Films in the categories of Completion, Post-Pro-
duction and Film Transfer from Digital to 35mm Cinema Film Format,
the subsidy type of incentive is only applicable when the production has
a running time of 10 minutes or less, and, in any case, CNAC will only
contribute a maximum of 30% of the average cost that CNAC has estab-
lished for this class and type of national production (based on technical
studies undertaken periodically for this purpose).
Venezuela 237
b) Financial Interest
This funding modality involves CNAC going into partnership with the
beneficiary of the incentive through a varying level of investment in the
production budget. This means that CNAC is entitled to receive a per-
centage of revenue generated from the commercial exploitation of the
film until the total amount invested has been recouped. Revenue is cal-
culated in line with the settlement regulations laid down in the Ley de
Cine.
When this type of funding is used to fund the categories of Production
of Short, Medium-length and Feature-length Fiction, Documentary or
Animation Films, the percentage of revenue set aside for CNAC fluctu-
ates between 10% and 50%, depending on the scale of the costs set out
in the production budget in each particular case compared to the aver-
age costs that CNAC has established for this class and type of national
production (based on technical studies undertaken periodically for this
purpose).
In the case of Minority Co-productions of Feature-length Films (in-
ternational co-productions) that have received CNAC funding through
CNAC taking a financial interest in the production, which may fluctuate
between 10% and 20% of the total production budget, the beneficiary
must guarantee that the relevant contracts include the clauses necessary
to ensure that CNAC will recoup its financial interest in the production.
These clauses must state that:
- The Venezuelan party must maintain complete control over ac-
tivity on Venezuelan territory and over 100% of revenue earned in
Venezuela; and
- Revenue earned from commercial exploitation in the rest of the ter-
ritories, must be based on percentages fixed in the relevant co-pro-
duction contracts. The amount due to CNAC is calculated on the
basis of the percentage of revenue due to the Venezuelan party.
In the case of the activities of Completion and Post-production of
Film Projects and Film Transfer from Digital to 35mm Cinema Film
Format, when the films run for more than 10 minutes, the percentage
to be recouped by CNAC must be proportionate to the ratio between
CNACs investment and the total production cost. In any case, with the
exception of Film Transfer from Digital to 35mm Cinema Film Format,
238 Current mechanisms for financing audiovisual content in latin america 2
9 http://www.cnac.gob.ve
Venezuela 239
Only those persons registered on the National Film Register, provided for in the
Ley de Cine, may apply for financial support for their film projects. In addition,
for each of the categories described in section 1) above, there are specific re-
quirements in terms of experience and training to be met by persons applying
under each category.
Once a project has been classified as eligible, it must pass through certain hoops
before it can conclude an Incentive Contract with CNAC. Funding is granted
through the Incentive Contract, which lays down the terms and conditions un-
der which funding has been granted.
The control, destination and insurance of granted funds is managed main-
ly through a system of guarantees, which are enforced should the beneficiary
breach the terms under which CNAC provides financial support.
Acknowledgements
The authors would especially like to thank the following people and institutions
for their help in completing this chapter on Venezuela:
Centro Nacional Autnomo de Cinematografa (CNAC - the Autonomous National
Centre for Film-making), and in particular its President, Sr. Juan Carlos Lossada.
Directorio de Responsabilidad Social en Radio, Televisin y Medios Electrnicos (So-
cial Responsibility Board for Radio, Television and Digital Media), and in partic-
ular Sr. Samir Alberto Luzardo H., a Member of the Board.
Asociacin Venezolana de Exhibidores de Pelculas (AVEP - the Venezuelan Asso-
ciation of Film Exhibitors), and in particular Sr. Abdel Gerere, Executive Pres-
ident of AVEP.
Venezuela
1. Televisin
1 Incluye: (i) Televisin UHF; (ii) televisin VHF; (iii) televisin comunitaria de servicio pblico, sin fines de
lucro; y (iv) servicios de produccin nacional audiovisual, difundidos a travs de un servicio de difusin por
suscripcin. Cada una de estas categoras estn definidas y reguladas en la legislacin venezolana.
2 Reforma parcial del 28/12/2010 y reimpresa en la Gaceta Oficial de la Repblica Bolivariana de Venezuela N
39.610 del 07/02/2011.
3 Providencia mediante la cual se dictan las Normas Tcnicas sobre los Criterios y Mecanismos para la
Asignacin de los Recursos del Fondo de Responsabilidad Social (Normas Tcnicas sobre Criterios y
Mecanismos de Asignacin del FRS) Gaceta Oficial de la Repblica Bolivariana de Venezuela N 38.322
del 25/11/2005); y Providencia mediante la cual se dictan las Normas Tcnicas para la Administracin
del Fondo de Responsabilidad Social (Gaceta Oficial de la Repblica Bolivariana de Venezuela N 38.253
del 18/08/2005). El Directorio de Responsabilidad Social es un rgano colegiado con diversas potestades
pblicas creado por la Ley Resorteme.
4 Instructivo metodolgico para la presentacin ante el fondo de responsabilidad social de proyectos.
CONATEL es Ente Regulador de las Telecomunicaciones de Venezuela. Tiene potestades de regulacin sobre
la infraestructura de red (plataforma) y sobre los contenidos difundidos a travs de las distintas redes.
241
242 Mecanismos Actuales de Financiacin de Contenidos Audiovisuales en Latinoamrica 2
5 Segn las regulaciones venezolanas se considera que una produccin audiovisual es nacional, si en su
creacin, direccin, produccin y postproduccin, se evidencia la presencia de los siguientes elementos,
en la concurrencia y porcentaje que fije el Directorio de Responsabilidad Social mediante normas tcnicas,
y siempre que en su conjunto no sea inferior al 70%: a) capital venezolano, b) locaciones venezolanas; c)
guiones venezolanos; d) autores venezolanos; e) directores venezolanos; f) personal artstico venezolano; g)
personal tcnico venezolano; y h) valores de la cultura venezolana.
Venezuela 243
4. Cinematografa
El sector cinematogrfico venezolano est regulado, principalmente, por la
Ley de Cinematografa Nacional (Ley de Cine)6, el Reglamento de la Ley de
Cinematografa Nacional (Reglamento de Cine)7, algunas Providencias Ad-
ministrativas dictadas por el Centro Nacional Autnomo de Cinematografa
(CNAC) y algunos Reglamentos Internos Dictados por el Comit Ejecutivo
del CNAC, entre los cuales se destaca el Reglamento Interno de Estmulo
y Fomento a la Creacin y la Produccin Cinematogrfica8. En los mencio-
nados instrumentos estn contenidos, en trminos generales, el rgimen de
estmulos econmicos (financiaciones) destinados a las obras cinematogr-
ficas. Adicionalmente, Venezuela ha suscrito varios acuerdos bilaterales de
coproduccin y otros acuerdos internacionales en materia de cinematografa,
tendientes a facilitar la participacin de entidades y personas, as como inte-
grar fuentes de recursos provenientes de varias nacionalidades, en una misma
produccin.
En el mbito nacional, la Ley de Cine cre un Fondo de Promocin y Fi-
nanciacin del Cine (FONPROCINE), destinado a la promocin, fomento,
desarrollo y financiacin del cine. Adems, de los aportes del sector pblico y
otras fuentes de recursos, FONPROCINE obtiene ingresos a travs de varios
tipos de contribuciones especiales impuestas a ciertas categoras de personas
que realicen actividades relacionadas con el sector cinematogrfico.
La asignacin de los recursos destinados al estmulo y la financiacin de
actividades relacionadas con la produccin cinematogrfica corresponde al
CNAC, que es el ente regulador del cine y es un Instituto Autnomo con
personalidad jurdica y patrimonio propio adscrito al Ministerio del Poder
Popular para la Cultura.
A travs de diversos mecanismos se puede obtener financiacin del CNAC
para realizar la mayora de las actividades de preproduccin, produccin y
postproduccin de obras cinematogrficas nacionales (desde el desarrollo del
guin hasta la transferencia de una obra cinematogrfica terminada en un
formato digital, a formato cine de 35 mm) y ciertos tipos de coproducciones.
a) Subsidio
A travs de este tipo de estmulo, el CNAC otorga recursos econ-
micos sin que exista la obligacin de devolver las cantidades entre-
gadas, siempre y cuando cumpla con las obligaciones a que queda
sujeto el beneficiario del subsidio.
En el caso de Desarrollo de Guin Cinematogrfico y Diseo de
Produccin para la Animacin, el financiamiento que el CNAC
puede aportar, es definido en cada caso por el propio CNAC. Para
la modalidad de Desarrollo de Proyecto Cinematogrfico, el CNAC
puede aportar hasta un mximo del 50% del presupuesto del Desa-
rrollo del Proyecto presentado. Respecto a las dems actividades re-
ferentes a la Produccin de Corto, Medio y Largometraje, el CNAC
define en cada caso qu porcentaje de los aportes se har bajo la
modalidad de Subsidio, y qu parte queda sujeta a que el CNAC
obtenga un porcentaje de los ingresos que se generen por la explota-
cin comercial de la obra (participacin financiera); y que depende
Venezuela 247
Agradecimientos
Los autores agradecen especialmente a las siguientes personas e instituciones
por su ayuda para realizar este captulo correspondiente a Venezuela:
Centro Nacional Autnomo de Cinematografa (CNAC) y en forma particu-
lar a su Presidente Sr. Juan Carlos Lossada.
Directorio de Responsabilidad Social en Radio, Televisin y Medios Elec-
trnicos y en forma particular al Sr. Samir Alberto Luzardo H., Miembro
del Directorio de Responsabilidad Social en Radio, Televisin y Medios
Electrnicos.
Asociacin Venezolana de Exhibidores de Pelculas (AVEP), y en forma parti-
cular al Sr. Abdel Gerere Presidente Ejecutivo de la AVEP.
Authors Biographies | Biografas de los autores
ARGENTINA
Orlando Daniel Pulvirenti, lawyer and notary public, has a law degree from
the Law School at the Universidad National de La Plata (1989); a Masters De-
gree in Comparative Law, Law School, University of Miami, USA (1996); a PhD
in Law, Universidad Nacional de Buenos Aires (2010). A Professor of Human
Rights and Guarantees, Law and Social Sciences School, Universidad Nacional
de Buenos Aires (1999 to date); Lecturer at the Law School, Argentine Treasury
Attorneys Office; graduate studies at the Universidad Catlica Argentina, Uni-
versidad de Morn. Member of the Argentine Constitutional Law Association
and Secretary of the International Public Law Institute, Academia Nacional de
Derecho. Former partner of the Estudio Bunge, Smith & Lucha Puig law firm
associated with Squire & Sanders LLP, heading up its intellectual property and
administrative department. Author of several books and articles in specialized
journals on intellectual property, as well as administrative and constitutional law.
He has served as an Advisor to the Argentine Lower House; Justice Director,
Legislative Assembly, Buenos Aires, and is currently the Legal Affairs Manager
at the National Film and Audiovisual Arts Institute in Argentina.
BOLIVIA
Fernando Martinez*
Independent Director and Producer
BRASIL
Fbio de S Cesnik
Cesnik, Quintino e Salinas Advogados
Fbio de S Cesnik is the founding partner of the law firm Cesnik Quintino
& Salinas. He works with major clients from various segments, especially in the
music, audiovisual, performing arts, visual arts and advertising area, and also
provided advisory services to national and multinational companies to invest in
entertainment, culture and the third sector. He holds a degree, from the Law
School of the University of So Paulo (USP) and is the co-author of Cultural
Projects: Development, Management, Legal Aspects and Search for Sponsor-
ship (fourth edition) published by Escrituras, and Globalization Culture,
published by Manole. Author of The Cultural Incentive Guide, (third edition),
published by Manole, and coauthor of the Brazilian chapter of Tax Incentives
for Audiovisual Production and Co-Production in Latin America, Canada and
the United States, by LATC (Latin American Training Center) and EGEDA.
Listed by Chambers Guide: Latin America as a leading expert in the field of me-
dia and entertainment (2010 to 2013), he was also elected by the Corporate
International Magazine 2011 as Lawyer of the Year in his area of expertise. He
is a full member of the Institute of Lawyers of So Paulo and the International
Institute of Museums (ICOM) and Chairman of the Media and Entertainment
Committee of the IASP.
Roberto Drago Pelosi Juc is an attorney of the law firm Cesnik Quintino &
Salinas. He manages the audiovisual area, serving major market players and ad-
vising on regulatory and Administrative Procedural scope of the National Film
Agency ANCINE. He holds a degree in Public Law from the State University
of Rio de Janeiro.
Roberto Drago Pelosi Juc es abogado del estudio jurdico Cesnik Quinti-
no & Salinas. Administra el rea de Audiovisual, atendiendo importantes
players del mercado y prestando asesora en el mbito regulatorio y procedi-
mental administrativo ante la Agencia Nacional de Cine ANCINE. Es espe-
cialista en Derecho del Estado por la Universidad Estatal de Rio de Janeiro.
CHILE
Andrs E. Young
Chile Films S.A.
COLOMBIA
CUBA
Lilianne Rodrguez
Instituto Cubano del Arte e Industria Cinematogrficos ICAIC
Lilianne (La) Rodrguez has a Bachelors Degree in Law from the University
of Havana and a Masters Degree in Business Administration from the Financial
Study Center, Barcelona, Spain, as well as a Masters Degree in Corporate Law,
University of Barcelona, Spain. She began her career as a Professional Judge of
civil and administrative cases at the City of Havana Provincial Court, subsequently
specializing in matters related to Copyright and Audiovisual Production Law. For
thirteen years, she worked at the Cuban Institute of Cinematographic Art and In-
dustry as a Legal and Co-Production Advisor for the Production House and other
structures in the corporate system of this Institute.
She has been engaged in educational activities as a contributing lecturer on
Copyright Law at the Law School, University of Havana, and has also conducted
workshops on this topic at the International Cine, Radio and Television School
at San Antonio de los Baos, as well as local and international workshops and
seminars related to the audiovisual field.
258 Mecanismos Actuales de Financiacin de Contenidos Udiovisuales en Latinoamrica 2
At the moment, she is involved with several productions under way and also
directs the Industrial Sector of the International Nuevo Cinema Latin American
Festival in Havana.
ECUADOR
Jorge Luis Serrano Salgado is the Deputy Minister of Culture and Heritage
Assets in Ecuador, and the First Executive Director of the National Cinematog-
raphy Council. He is a former Director General of the Audiovisual Producers
Collective Copyright Management Society in Ecuador. A sociologist with a
specialty in Copyright and Related Rights (2006), he been involved with anal-
ysis, scriptwriting and cinematographic and audiovisual productions in Madrid
(2002) and Buenos Aires (1995). Lecturer, Facultad de Comunicacin Social,
Authors Contact Information | Informacin de contacto de los autores 259
MEXICO
Professional Studies
Bachelor of Arts in Law, from the Escuela Libre de Derecho, Mexico, D.F.
Graduate in Taxes, Instituto Tecnolgico Autnomo de Mexico (ITAM),
260 Mecanismos Actuales de Financiacin de Contenidos Udiovisuales en Latinoamrica 2
Mexico D.F.
Masters Degree in Law, with a specialty course in US Taxes, Northwestern
University, Chicago, IL.
Career
1996-1998. Rubio Villegas e Asociados, S.C.
1998 Joined Chevez, Ruiz, Zamarripa y Cia., S.C.
2005-2006 Associate, PricewaterhouseCoopers LLP, New York.
2007 Rejoined Chevez, Ruiz, Zamarripa
2010 Promoted to Partner in the firm
Memberships
Member of IBA.
Member of BMA and Advisor to the Board Member and the Tax Law Commission
of the BMA, Monterrey, Mexico.
Tenured Professor, Facultad Libre de Derecho, Monterrey, Mexico.
Estudios profesionales
Licenciado en Derecho por la Escuela Libre de Derecho, Mxico, D.F.
Diplomado en Impuestos por el Instituto Tecnolgico Autnomo de Mxico
(ITAM), Mxico D.F.
Maestra en Derecho con especialidad en Impuestos de Estados Unidos, en
la Universidad Northwestern, Chicago, IL.
Trayectoria laboral
1996- 1998. Rubio Villegas y Asociados, S.C.
1998.- Ingreso a Chevez, Ruiz, Zamarripa y Cia., S.C.
2005-2006.- Asociado en PricewaterhouseCoopers LLP, Nueva York.
2007.- Se reincorpor a Chevez, Ruiz, Zamarripa
2010.- Promovido a Socio de la Firma
Afiliaciones
Miembro de la IBA.
Miembro de la BMA y consejero de la Mesa Directiva y de la Comisin de
Derecho Fiscal de la BMA en Monterrey, Mxico.
Maestro Titular de la Facultad Libre de Derecho de Monterrey, Mxico.
Authors Contact Information | Informacin de contacto de los autores 261
PERU
Hugo Bravo de Rueda I. is a lawyer with a degree from the Pontifical Cath-
olic University of Peru and an MBA from the University of the Pacific in Lima.
A founding partner of the Estudio Castro & Bravo de Rueda Abogados law firm,
established in 1999, he is involved with providing corporate advisory services to
businesses and associations in the audiovisual industry, among others, and has
actively participated in actions against piracy, as well as organizing seminars and
capacity-building talks for judges, inspectors, customs officers and National Po-
lice members on topics related to the protection of Intellectual Property Rights
in the Audiovisual Industry.
Javier Gutierrez Gamio is a lawyer with a degree from the Pontifical Catho-
lic University of Peru and a Masters Degree in Intellectual Property Law and Ju-
risdiction from this same university. Specializing in Brands and Patents, Copy-
right, Unfair Competition, Advertising and related topics, he is an associate with
the Estudio Castro & Bravo de Rueda law firm, which provides advisory services
to major Peruvian and foreign institutions engaged in the distribution and exhi-
bition of audiovisual works. He was a member of the Intellectual Property Com-
mittee of the Peruvian American Chamber of Commerce (AMCHAM), and has
been involved with the organization of seminars and talks for judges, inspectors,
262 Mecanismos Actuales de Financiacin de Contenidos Udiovisuales en Latinoamrica 2
customs officers and National Police officers on topics related to the protection
of Intellectual Property Rights in the Audiovisual Industry.
PUERTO RICO
Luis M. Pellot-Gonzlez
Pellot-Gonzlez Derecho Contributivo y Corporativo
Association, the Puerto Rican Hotels and Tourism Association and the National
Hispanic Association.
Janira Beltrn-Sells
Pellot-Gonzlez Derecho Contributivo y Corporativo
Janira Beltrn-Sells works mainly with Tax, Corporate and Notary law. In
1996 she qualified as a chartered accountant and in 2003 was accepted at the
Puerto Rican Bar. She worked with the analysis and drafting of the Puerto Rican
Tax Reform Bill in 2006, as well as drafting procedural tax rules. Her tax expe-
rience includes stints as a tax specialist with Ernst & Young (1998-2000) and
as an associate at Pellot-Gonzlez, Tax Attorneys & Counselors at Law, P.S.C.
(2002-2005). Moreover, she has served as an administrative judge for the Trea-
sury Department (2005-2008) where she was in charge of planning, directing,
coordinating and overseeing appeals related to unpaid taxes and loopholes. In
2008, she rejoined Pellot-Gonzlez, Tax Attorneys & Counselors at Law, P.S.C.
264 Mecanismos Actuales de Financiacin de Contenidos Udiovisuales en Latinoamrica 2
as a partner. She is a member of the Puerto Rican Bar Association and the Puerto
Rican Institute of Chartered Accountants.
REPBLICA DOMINICANA
Jaime R. Angeles
Angeles y Lugo Lovatn
URUGUAY
VENEZUELA
Since 1995 his legal practice has focused on the telecommunications, me-
dia and publicity, and technology industries. He is co-author of the prevailing
Ley Orgnica de Telecomunicaciones (Organic Law on Telecommunications) and
the Ley para la Promocin y Proteccin de las Inversiones en el Uso y la Explotacin
del Espectro Radioelctrico (Law for the Promotion and Protection of Investments
in the Use and Exploitation of the Electromagnetic Spectrum).
Highlights of his professional career include: Head of Delegation, Chief Ne-
gotiator and member of the Negotiating Group on Basic Telecommunications
(NGBT) at the World Trade Organisation (WTO) in Geneva, Switzerland. He
has been a Legal Advisor for the regulatory body the Comisin Nacional de Tele-
comunicaciones (CONATEL - National Commission for Telecommunications).
Legal Advisor for the Cmara de Empresas de Servicios de Telecomunicaciones
(CASETEL - Chamber of Telecommunication Service Companies) since 1997.
He was also the expert selected by the World Bank to prepare the study on Tele-
communications and ICT Policy in Venezuela (The World Bank Groups Glob-
al Information & Communication Technologies, Policy Division) in November
2003. He has also advised The Motion Picture Association Latin America
(MPA-LA) and, recently, the worlds largest news channel on regulatory issues.
Legal Counsel for Venezuela at the Television Association of Programmers
(TAP), which brings together the main international television channels, since
2004. Member of the Board of Directors at the Venezuelan-Spanish Chamber
of Industry and Commerce (Official Chamber for the Kingdom of Spain) 2008-
2009, and Legal Advisor to the above-mentioned Chamber 2004-2009.
Since 1996 he has advised the main national and foreign companies that operate
fixed-line, mobile and satellite telecommunication networks and services, and
broadcasting networks and services, international providers of content for Pay
TV and the internet, Pay TV operators, producers, as well as companies provid-
ing equipment and technology, and industries producing mass-market products.
268 Mecanismos Actuales de Financiacin de Contenidos Udiovisuales en Latinoamrica 2
Before founding Gazs Dolnyi & Fernndez law firm (2005), Carlos Julio Fernn-
dez Vega was the partner in charge of opening Venezuelas first department special-
ising in telecommunications in the countrys second largest law firm (Hoet, Pelez,
Castillo & Duque). Later, and until 2004, he was the partner that founded and ran
the Telecommunications & Media Department in Venezuelas second largest in-
ternational law firm (Macleod Dixon, S. C., now called Norton Rose Fulbright, S.C.).
Graduated as a lawyer from the Universidad Catlica Andrs Bello in 1990. Admit-
ted to the Federal District Bar Association in 1991 and to the Miranda State Bar
Association in 2001. Postgraduate studies in Administrative Law at the Univer-
sidad Catlica Andrs Bello. An advanced course in the Administracin del Espec-
tro Radioelctrico (Administration of the Electromagnetic Spectrum) run by the
Federal Communications Commission (FCC), the Universidad Simn Bolvar
(USB), and the Comisin Nacional de Telecomunicaciones (CONATEL) in 1997.
In addition, Carlos Julio Fernndez Vega is the author of dozens of specialist
articles and lectures.
Since 1998, on the one hand, his legal practice has focused on negotiating
and preparing international and domestic contracts in various areas including
copyright licences, as well as brands and patents, administration of industri-
al works and projects in the energy sector and others, partnerships for the de-
velopment of specific business deals, air transport, operations in the domestic
entertainment sector through television, film-making, financing agreements,
company re-structuring, implementation of financial guarantees, construction
contracts and dispute settlement in all cases, as well as legal audits and prepara-
tion of legal opinions in all the above-mentioned areas.
On the other hand, to a large degree his legal practice has also encompassed
managing disputes, both lawsuits and arbitration, to defend his clients rights in
all the areas of activity mentioned above. He has been involved in the establish-
ment of legal norms to regulate various independent and institutional arbitra-
tions and he participated actively in the process of legal debate for the prevailing
Ley de Cinematografa Nacional (National Film-making Law).
Since 1998 he has advised the main national and foreign companies, including
the company that carried out Venezuelas largest ever hostile takeover bid to ac-
quire an electricity utility company, as well as various airlines, insurance and re-
insurance companies, Venezuelas main steel company, various manufacturers of
mass-market products for internationally-known brands, and Venezuelas main
financial institutions, including the international multilateral organisation the
Corporacin Andina de Fomento (Andean Development Corporation).
Before founding Gazs Dolnyi & Fernndez law firm, from 2003 Pedro Miguel
Dolnyi had embarked upon an independent career as a lawyer, founding Gazs
& Dolnyi law firm in 2004. Previously, from 1998 he was a member of the dEm-
paire Reyna Bermdez law firm, and before this, from 1994, he worked as a legal
assistant at Venezuelas largest international law firm, Baker & McKenzie.
Graduated as a lawyer from the Universidad Catlica Andrs Bello in 1998. Admit-
ted to the Federal District Bar Association in 1999. Postgraduate studies in Pri-
vate and Comparative International Law at the Universidad Central de Venezuela.
Derecho Corporativo / Adquisiciones y fusiones
Derecho Procesal / Litigios y Arbitraje
Derecho Internacional Privado/ Contratacin Internacional
Derecho de la Propiedad Intelectual, Marcas y Patentes
Desde 1998, su prctica legal ha estado enfocada, por una parte, en la nego-
ciacin y preparacin de contratos internacionales y domsticos en diversas
Authors Contact Information | Informacin de contacto de los autores 271
ARGENTINA
Orlando Daniel Pulvirenti
Instituto Nacional del Cine y de las Artes Audiovisuales INCAA
Lima 319, Piso 6to, Ciudad Autnoma de Buenos Aires.
Opulvirenti.edu@gmail.com | Orlando.Pulvirenti@incaa.gov.ar
54 11 4799 9000 | 54 9 11 3238 1069
BOLIVIA
Fernando Martinez
Independent Director and Producer
Calle Modesta Sanjines 1357
Miraflores, La Paz - Bolivia
+591 775 40253
locacionesbolivia@gmail.com
producenbolivia2@mac.com
BRASIL
Fbio de S Cesnik & Roberto Drago Pelosi Juc
Cesnik, Quintino e Salinas Advogados
cesnik@cqd.adv.br
roberto@cqs.adv.br
+55 11 3660 0300 (SP) e 55 21 2522 0400 (RJ)
+55 11 3660 0447 (SP) e 55 21 2522 3571 (RJ) Fax
Av. Paulista, 1776 Piso 18
So Paulo, SP, Brasil
Av. Rio Branco, 133 Piso 14
Centro, Rio de Janeiro, RJ, Brasil
273
274 Mecanismos Actuales de Financiacin de Contenidos Udiovisuales en Latinoamrica 2
CHILE
Andrs E. Young
Chile Films S.A.
Rosario Norte 555, piso 23
Las Condes, Santiago, Chile 7561115
ayoung2003@alumni.law.ucla.edu
COLOMBIA
Cristina I. Echeverri Sarmiento
J. Echeverri & Asociados SAS
Cristina.isabel@jeasas.com
Cristina.Isabel@echeverri.ws
Tels. +57 1 8050902 / 8050947
Cel. +57 3157228398
Bogot D.C., Colombia
CUBA
Lilianne Rodrguez
Instituto Cubano del Arte e Industria Cinematogrficos ICAIC
lilianner@yahoo.com
Havana, Cuba
ECUADOR
Jorge Luis Serrano Salgado
Consejo Nacional de Cinematografa del Ecuador - CNCINE
Ministerio de Cultura y Patrimonio
Av. Coln E5-34 y Juan Len Mera, Quito, Ecuador
+593-2 381-4550
www.culturaypatrimonio.gob.ec/contacto
MEXICO
Ramn Orendin Urrutia
(Chevez, Ruiz, Zamarripa y Cia., S.C.)
Batalln de San Patricio No. 109, Piso 8
Col. Valle Oriente, 66269, San Pedro Garza Garca, N.L.
+52-81 13-40-93-02
rorendain@chevez.com.mx
PERU
Hugo Bravo de Rueda I. & Javier Gutierrez Gamio
Castro & Bravo de Rueda Abogados
hbravoder@cbrabogados.com.pe
Authors Contact Information | Informacin de contacto de los autores 275
jgutierrez@cbrabogados.com.pe
www.cbrabogados.com.pe
+511 448686 / 4192430
Av. La Paz N. 1381, Miraflores
Lima, Per
PUERTO RICO
Luis M. Pellot-Gonzlez & Janira Beltrn-Sells
Pellot-Gonzlez Derecho Contributivo y Corporativo
The Hato Rey Center, Suite 903
268 Ponce de Leon Avenue
San Juan, Puerto Rico 00918
+1 787-250-6300/ +1 787-250-6330
www.pellot-gonzalez.com
REPBLICA DOMINICANA
Jaime R. Angeles
Angeles y Lugo Lovatn
Jangeles@angeleslugo.com
Angeles & Lugo Lovatn
+809 541-2040
Santo Domingo, Repblica Dominicana
URUGUAY
Manuel Gonzalo Suarez Charlone
Asesor Jurdico, Instituto del Cine y Audiovisual del Uruguay ICAU
manuelsuarez@adinet.com.uy
+598 29000001/ 29028363
+598 099621075 (cel)
Avda. Libertador 1641, 204
Montevideo, Uruguay
VENEZUELA
Carlos Julio Fernndez Vega & Pedro Miguel Dolnyi
Gazs Dolnyi & Fernndez Abogados
info@law.com.ve
Centro Lido, Torre D, Piso 4
Av. Francisco de Miranda
Caracas 1060, Venezuela
Tel.: + (58 212) 624 66 66
Tel.: + (58 212) 624 22 44
Fax: + (58 212) 635 46 46