「Time to Invest in Taiwan Cinema」Q&A for investors

「Time to Invest in Taiwan Cinema」Q&A for investors

Q:Is it the right time to invest in Taiwanese films?
A:Absolutely! Here are four niches that make this timing perfect for investors to join the rising of Taiwanese films.

Niche 1 : Once the cross-strait Economic Cooperation Framework Agreement takes effect, domestically produced motion pictures in Taiwan can be imported to China without being limited by the quota of 50 foreign film imports. Those who invest in Taiwanese films can expect considerable profit yielded from the massive market of mainland China. This advantage is estimated to be an excellent incentive for international enterprises to invest in domestically produced motion pictures in Taiwan. Take Kung Fu Dunk for example, the movie, made only with a NTD$ 0.3 billion budget, has reached NTD$ 0.723 billion at global box office, and the investors enjoyed a 141-percent rate of return. In addition, international companies can also have a better chance of entering the market in China by coproducing with production companies in Taiwan.

Niche 2: Under the effort of local film workers and the government, Taiwanese films have revived and been embraced by Asian audience again. The newly-launched “Film Industry Development Flagship Plan” focuses on giving out production subsidies of NTD$ 0.76 billion from August, 2010 to December, 2014.

Niche 3: The government has assisted the development of local film industry with various subsidies and comprehensive services, while it also encourages private sectors to invest in motion pictures. So far, these efforts have proved to be successful: several box office hit have emerged, such as Cape No.7, Orz Boyz, Kung Fu Dunk (2008),1895, Hear Me, Empire of Silver (2009), Monga, Au Revoir Taipei(2010). These hits demonstrate that with a solid foundation, Taiwanese films are attractive to international funds and top-notched talents.

Niche 4: National Development Fund is going to invest NTD$ 10 billion in cultural and creative industries.

Q:Who can invest in Taiwanese films?
A:Everyone is welcomed! Domestic or foreign enterprises, groups or individuals are all welcomed to invest.

Q:What incentives does the government offer?
A:The government provides various incentives of two categories.

I. Financing Assistance
1. Production subsidy—Domestically produced motion pictures can apply for subsidies that can cover up to 49 percent of its production cost.
2. Tax credit—Enterprises may enjoy a 20-percent business income tax credit on their investment in domestic motion picture production companies.
3. Box Office Reward--If any domestically made movie reaches more than NTD$ 20 million at local box office, the production company is entitled to a reward equal to 20% of its total box office. The prize money is up to NTD$ 50 million, and it should be contributed to the company’s next movie.
4. Preferential Loan—The government will recommend production companies so that they can enjoy preferential loans. In addition, we also provide subsidies for production companies to cover the 3% loan interest for 3 years.

II. Matching Service
1. Between investors and producers-- Venture forums will be held to match potential projects and venture capitalists.
2. Between producers and distributors/buyers—Marketing events tailor-made for Taiwanese films will be held in major international film festivals so as to facilitate international marketing.
3. Between producers and public sectors—Specific contact and service windows are set up to provide information.

Q:How do I invest?
A4:Please contact us in business hours so that we can arrange matching as soon as possible. If you would like to apply for subsidies, a complete proposal should be submitted to our office, and the committee will examine the proposal and decide on the total amount of subsidies. In addition, we could also set up meetings between you and potential producers.

The procedures are as the attachment.

InvesTaiwan Service Center
The Executive Yuan
Ms. Winnie Yang
Cell phone: +886-0919-271-240
Tel: +886-2-2311-2031*202
E-mail: tmpitsc14@moea.gov.tw

Global Investment Service Hotline
Counsel for Economic Planning and Development

Department of Motion Pictures, Government Information Office
Ms. Amber Wei-fen Wu
Tel: +886-2-33567711
E-mail: amber0207@mail.gio.gov.tw