The Emergency Decree that promotes the cinematographic and audiovisual activity is a regulatory framework of the State that encourages the development of the sector through project financing, having an impact on all the stages of the value chain.
The Emergency Decree improves the financing system for the distribution of national films in the country, the international promotion of Peruvian talent and production, the development of capacities, the training of audiences, and audiovisual preservation with automatic support based on objective criteria.
Financing is granted to feature films, short films and other audiovisual projects, such as television series, digital media content, festivals, training activities and the recovery of audiovisual heritage, among others. A minimum annual budget allocation of 6,000 Tax Units (UIT) (equivalent to USD 7,701,492.53) has been assigned to this endeavor. This budget brings us closer to the ones of countries such as Colombia and Chile.
Financings are granted nationwide, 60% to 70% of which are open to applications from all the regions of the country, without restrictions. Moreover, an annual minimum amount between 30% and 40% is contemplated to be exclusively allocated to regions outside Metropolitan Lima and Callao. This percentage was agreed by all the associations in the country, and seeks to increase regional participation, which was already ranging from 21% to 30% of the total number of received applications.
Legal entities and individuals may donate money to national or foreign film projects certified by the Ministry of Culture provided that the owners of those projects are non-profit associations, and deduct their investment in their income tax return, up to 10% of it.
In addition to the financings and their regulations, the law establishes the necessary background for the future creation of the National Film Archive, to be inaugurated as an emblematic work within the framework of the commemoration of the Bicentennial of Peru's Independence; empowers the National Institute of Radio and Television (IRTP) to co-produce films and other content; and favors international co-production with countries that have signed co-production agreements with Peru. It also establishes as a priority the promotion of indigenous and indigenous language films, and includes the purpose of promoting equal rights and opportunities between the men and women who participate in the cinematographic and audiovisual activity.
The Ministry of Culture has been given the power to grant incentives to cultural industries and arts in general, establishing for this purpose a minimum allocation of 1,000 UIT (USD 1,253,731.3)
This Emergency Decree is reported within the objective of supporting sustainable systems of governance for culture since it is a regulatory framework that seeks to encourage the participation of all the citizens in the production chain of the audiovisual sector. Likewise, this measure, which will allow for the development of the sector through the promotion of the creation, production and dissemination, has been prepared in constant dialogue with representatives of civil society.
In 2017 and 2018, some provisions were included in the framework of the Public Sector Budget Laws, which empowered the Ministry of Culture to grant economic incentives to individuals and legal entities participating in the cinematographic and audiovisual activity, as well as in the cultural industries and arts. In this connection, an additional budget of 3,000 UIT (equivalent to USD 3,761,194) was made available for the cinematographic and audiovisual activity, and 1,000 UIT (equivalent to USD 1,253,731.3) for the arts and cultural industries. In addition, 2008 UIT (equivalent to USD 2,517,492.53) were added to this amount for the cinematographic activity under the framework of Law No. 26370. In 2018, 161 projects or works belonging to the cinematographic and audiovisual activity were benefited, and a total of 865 applications were received.
* USD 7,636,363.63 (approximately) - 6,000 UIT per year for the film and audiovisual activity
* USD 1,272,727.27 (approximately) - 1,000 UIT per year for the arts and cultural industries
| Name of partner | Type of entity |
|---|---|
Ministry of Education
| Public Sector
|
Ministry of Foreign Affairs
| Public Sector
|
National Institute of Radio and Television (IRTP)
| Public Sector
|
Peru Export and Tourism Promotion Agency (PROMPERÚ)
| Public Sector
|
Despite not having an official evaluation, according to the studies made by Universidad del Pacifico in the paper "Economic impact of the cinematographic and audiovisual sector and cost-benefit analysis of the implementation of the preliminary draft of the Law of Peruvian Cinematography and Audiovisual", it is estimated that PEN 25 million (USD 7,665,671.6), distributed in economic incentives, by being fully used as an investment in the sector, should generate an increase of PEN 104 million (USD 31,044,776) on national production, the national income would increase by PEN 49 million (USD 14,626,865) and, as a consequence of the boost of the film sector, 1,464 jobs would be created throughout the economy, according to estimates based on the input-output matrix.