When shooting internationally to capture tax incentives, it is important not to assume that a project will qualify simply because of its location. Many countries require a "cultural test" to ensure that the production provides a benefit to the local film industry and culture.
What is a Cultural Test?
A cultural test is a point-based system that evaluates a production across several categories. Projects must meet a minimum number of points to qualify for the incentive.
The UK Cultural Test
In the United Kingdom, the British Film Institute (BFI) administers the test. Categories include:
- Cultural Content: Is the film set in the UK? Are the principal characters British citizens or residents?
- Cultural Contribution: Does the film represent British culture or heritage?
- Cultural Hubs: Is the production using UK studios or post-production facilities?
- Cultural Practitioners: Are the key crew members (directors, writers, department heads) British citizens or residents?
Germany and the DFFF
Germany’s cultural test is managed by the German Federal Film Fund (DFFF). The requirements differ for feature films, documentaries, and animated projects. Like the UK, Germany focuses on the use of German personnel and facilities.
France and Content Rules
France also has a rigorous cultural test. Projects like The Nun 2 have successfully navigated these requirements by shooting entirely within the country and utilizing local resources.
Content and Contentious Issues
Cultural tests are not just about capturing financial benefits; they can also be about allowed content. Some jurisdictions will not offer incentives for projects that portray their country in a negative light. For example:
- Thailand: Projects that depict a corrupt police force may be rejected or required to be rewritten.
- Texas: The state does not require incentive payments for projects that include inappropriate content or portray Texans negatively.
- Abu Dhabi: Scripts must be approved by government officials to ensure they meet local ambiance and content guidelines.
Understanding these rules before you plan your shoot is critical to ensuring your production's financial stability.