Hungary has an indirect film tax rebate scheme since 2004 with a current rate of 30 percent tax rebate since June 2018. This film tax rebate scheme provides a favourable condition for international or domestic. film productions in Hungary. This rate of film tax rebate will certainly remain effective until December 31, 2024 giving the Hungarian film industry a good chance for keeping its market-leading position in the increasingly sharp European and regional competition.
The 30 percent normative indirect state film tax rebate is available in the form of a tax refund for the production of Hungarian, foreign or co-produced film in the case of which at least 80 percent of the filmmaking costs are incurred directly in the territory of Hungary. In the case of film productions not reaching this cost ratio, 25 percent of the Hungarian costs of non-Hungarian film production costs is also eligible for 30 percent refund, consequently, the effective ratio of the subsidy is 37.5% relative to Hungarian costs.
The 30 percent normative state film tax rebate available in the form of a tax refund . Strict registration, cost accounting, and administration requirements have to be fulfilled in order to apply for the indirect film tax rebate.