THE MOST
COMPETITIVE
FILM
INCENTIVES IN
LATIN AMERICA
Colombia offers the most attractive film incentives in the region, thanks to Law 1556 of 2012, which promotes Colombia as a filming destination for feature films, TV series, music videos, advertising, and more.
These film incentives in Colombia make it one of the most efficient, affordable, and production-friendly countries for audiovisual projects in Latin America.
LAW 1556 OF 2012
is part of the regulations for the promotion of the film and audiovisual industry in Colombia, established the incentives that promoteS Colombia as a destination and location for productions of:
✓ Film works
✓ TV Series
✓ Music Videos
✓ Advertising
THE PROCESS
1
application
2
evaluation
3
approval
4
contract
5
trust setUp
6
SHOOT
7
accreditation
8
rebate/issuance
9
Cina negotiation
key info
INCENTIVES
IMPORTANT
Trust Account
should managed
all resources
- Bid bond deposit in the amount of 40 SMLMV 11,759 USD
- The minimum expenditure required for FFC projects and for film works and series of the CINA must be equivalent to 1,800 SMLMV 529,142 USD
- The minimum expenditure required for music videos submitted to CINA must be equivalent to 200 SMLM 58,764 USD
- The minimum expenditure required for video games must be equivalent to 1,215 SMLMV357,020 USD
- The minimum expenditure required for audiovisual production for advertising must be equivalent to 400 SMLMV117,527 USD
SMMLV: Current legal monthly minimum wage in Colombia (2024) 1.300,000 COP
COP-USD EXCHANGE RATE 5 DEC 2024 1 USD = 4,423 COP
THE PROCESS
1. APPLICATION
REQUIRED DOCUMENTS FROM THE PRODUCER
- Application form.
- ID of the legal representative.
- Certificate of incorporation and legal representation for the production company.
- Description of the applicant producer or company.
- Certification of non-application or participation in any other incentives mechanism for the audiovisual industry in Colombia.
- Certification that the producer is not a Colombian taxpayer.
REQUIRED DOCUMENTS FROM THE project
GENERAL REQUIREMENTS
- Synopsis
- Script
- List of locations
- Technical sheet
- Total value
- Detailed schedule
- Monthly projection of expenses subject to CINA
**For films apply just General Requirements
SPECIFIC FOR FICTION, DOCUMENTARY AND ANIMATED SERIES
- Number of episodes
- Scripts of the first two episodes
- Series road map
SPECIFIC FOR REALITY OR NON-SCRIPTED SERIES AND SHORT WEB SERIES
- Total number of episodes
- Project bible
THE PROCESS
2. EVALUATION
10 business days
- Verification of fulfillment of the application requirements.
- If necessary, supplementary documents or contents can be requested.
- A concept of verification of requirements and relevance of the project is issued to the CPFC.
- The project is declared approved.
THE PROCESS
3. APPROVAL
Annual CPFC schedule
1
The CPFC (Committee) will decide on the approval or rejection of projects for reasons related to the fulfillment of the purposes of Law 1556.
2
The in-country spending budget for audiovisual services and logistical audiovisual services is determined, together with the maximum FFC/CINA rebate amount.
3
The signing of the Colombia Filming Contract is ordered.
THE PROCESS
4. FILMING CONTRACT
20 business days
The applicant producer must sign the Colombia Filming Contract with Proimágenes within a maximum of twenty (20) days following the approval of the project.
THE PROCESS
5. TRUST SETUP
3 months
The producer must set up a trust for the management and payments of the budget within a period of three (3) months following the signing of the Colombia Filming Contract.
THE PROCESS
6. SHOOT
The producer must
- Contract the relevant audiovisual and logistical services.
- Spend the established minimum amount.
- Carry out the filming activities for the project in Colombia, along with production or post-production work.
- Include credits for public screening and communication.
- Fulfill the general obligations and other related obligations.
THE PROCESS
7. ACCREDITATION
3 months
The producer must submit the following documents within a maximum period of three (3) months from the expiration of the term to make the expenditure in the country:
- Request for reimbursement of the FFC or CINA consideration.
- Certification issued by the trust entity.
- Certification issued by the external auditor.
- In case of foreign audiovisual projects, certification issued by the Film Services Association.
- Certification proving the link between the foreign producer and the direct depositor in Colombia designated for the dematerialized issuance of the CINA.
THE PROCESS
8. final step
FFC REIMBURSEMENT
Proimágenes will reimburse the FFC amount within the two (2) months following satisfactory receipt of all the required accreditations.
CINA ISSUANCE
1
Proimágenes will issue the certificate of authorization to the Ministry of Culture within a maximum period of fifteen (15) days following satisfactory receipt of all the required accreditations.
2
The producer must make a payment to cover administrative costs, equal to five per cent (5%) of the nominal value of the CINA, minus the amount corresponding to the bid bond deposit made.
3
The Ministry of Culture will issue the CINA in the producer’s name within fifteen (15) days.
THE PROCESS
9. CINA NEGOTIATION
The CINAs are freely negotiable securities, which are issued in the name of the foreign producer
responsible for the audiovisual project
- Its nominal value is equivalent to thirty-five percent (35%) of the value of the investment made in Colombia.
- According to a decision of the Ministry of Culture, the CINA are issued in a dematerialized form.
- They can be negotiated in the secondary market or transferred to natural or legal persons that declare income tax in Colombia.
- They can be used with a maximum validity of two (2) years from their issuance.
- The holder can use them partially or totally, before their maturity, to:
• Payment of income tax self-withholdings .
• Discount on the income tax statement.
- The income from the transfer of the certificate is not subject to withholding tax in the country and does not constitute taxable income in Colombia.
| Concept | Scenario A | Scenario B | Scenario C |
|---|---|---|---|
| Total Expenditure in the Country | |||
| CINA Incentive Value (35%) | 350,000 | 350,000 | 350,000 |
| Foreign Producer Contribution to the CINA System (5% incentive)* | 17,500 | 17,500 | 17,500 |
| Incentive Value Minus System Contribution | 332,500 | 332,500 | 332,500 |
| Market Discount Rate* | |||
| Discount Rate | 15% | 10% | 5% |
| Discount Value | 52,500 | 35,000 | 17,500 |
| Final Incentive Value After Negotiation | 280,000 | 297,500 | 315,000 |
| Approx. Percentage of CINA Incentive Over Total Expenditures | 28% | 30% | 32% |
| For the Income Taxpayer | |||
| Purchase Value of CINA | 297,500 | 315,000 | 332,500 |
| Nominal CINA Value for Tax Payment | 350,000 | 350,000 | 350,000 |
| Savings Due to Higher Fiscal Discount Value | 52,500 | 35,000 | 17,500 |
| Approx. Percentage of Tax Savings vs. Purchase Value of CINA | 18% | 11% | 5% |
*This value will not be deducted from the nominal CINA amount; it must be paid by the foreign producer.
*The presented calculations are illustrative and do not represent current market rates. Values and percentages may vary depending on market conditions.