Russia considers tax cuts for local animation industry

Russia’s Ministry of Economic Development has proposed tax cuts for the local animation industry, in an attempt to strengthen it against Hollywood and other foreign competitors.

Under the new proposal, Russian companies that produce animated films would benefit from the same tax privileges as those located at the government-supported Skolkovo Innovation Centre, which is set close to Moscow, regardless of their location.

In particular, the cuts would apply to taxes on salaries, which would be reduced from 30 per cent to 14 per cent. It is expected that this development would have a major impact on the sector, given that staffing costs represent 80 per cent of expenditure in the Russian animation industry.

While the date for the parliamentary vote on the bill has yet to be announced, it is anticipated that this will take place in the autumn.

2016 has been named “The Year of Cinema” in Russia, and the Russian government has already this year made steps to strengthen the local film industry. In February, the Ministry of Culture announced plans to subsidise the screening of domestic films in small towns across the country, while a new law to tax foreign digital companies, such as Google, Netflix and Apple is awaiting approval.

Source: Hollywood Reporter