The F1/F2 Audio Visual Production (AVP) incentives are schemes whereby a production entity can raise production finance from Fiji taxpayers. This allows Fiji taxpayers to claim a tax deduction of either 125% (F2 AVP) or 150% (F1 AVP) against their tax liability, depending on the project’s ability to meet the requirements as set out under Part III of the Income Tax (Film-making and Audio-visual Incentives) Regulations 2016.
The benefit is based on what is called “Qualifying Fiji Production Expenditure” or QFPE. This is otherwise known as “local spend” such as expenditures on local labour, local accommodation, the hire of local equipment.
Eligibility – who can access the relief?
- a large format film in large format theatres;
- a theatrical film or a short film in cinemas;
(c) broadcast television programmes by—
(i) broadcast on free‑to‑air, satellite or pay television; or
(ii) internet broadcast;
(d) a direct-to-video and video disk programme;
(e) an audio recording;
(f) computer software for use solely in relation to (a), (b), (c), (d) or (e); and;
(g) interactive websites and other e-commerce and telecommunications operations for use solely in relation to (a), (b), (c), (d), or (e).
(a) an audio-visual production for exhibition as an advertising programme or a commercial other than where that advertising programme or commercial is part of the marketing budget of an audio-visual production and is only advertising the audio-visual production which has funded it;
(b) an audio-visual production for exhibition as a discussion programme, a quiz programme, a panel programme, a variety programme or a programme of like nature;
(c) an audio-visual production which is substantially (more than 50%) of a public event; and
(d) an audio-visual production produced principally as a training aid.
(e) an extension of broadcast television programmes beyond the first 26 episodes of a continuing series;
(f) an extension of broadcast television programmes and television movies beyond 2 full length films in a continuing series;
(g) more than 2 audio recordings by the same artist or substantially the same artist;
(h) more than one short film by an individual director.
How does the mechanism work and what is the process?
An Applicant must apply to Film Fiji for a Provisional Certificate stating that a proposed AVP will, when complete, be a qualifying AVP.
An Application Form must be filled out and will include an Application Fee, Script or Synopsis, Budget in FJD, Completion Bond Certificate etc.
Prior to the commencement of the production 100% of the production budget must be deposited in a Fiji AVP Account and the Audio Visual Levy must be paid.
During Production a Fortnightly Production Report including a Cost Report is to be filed with Film Fiji.
Once a Provisional Certificate is issued, the film should be completed 24 months after the end of the year of assessment in which monies of a capital nature were first expended.
Within 6 months of the end of the Audio Visual Production, the applicant should apply for a Final Certificate.
An Application Form for a Final Certificate must be filled out and will include an Application Fee, Detailed Expenditure Report, Independent Audit Report, Documents showing compliance with the Provisional Certificate, Shooting Script, VHS Tapes and/or DVDs of the completed production with the final end credits, Broadcast Masters, Copy of Press Kit, Full Cast & Crew List and addresses etc.