The Incentive Scheme - Information on costs

Qualified costs

Grants pursuant to these regulations will be calculated based on the production accounts, i.e. the final size of the grant will be determined based on the final accounts verifying production costs spent in Norway (cf. section 8, fifth paragraph), cf. section 7, third paragraph.

Norway is to be understood as mainland Norway and the territorial boundary of 12 nautical miles from the baseline.

The grant may total up to 25 % of the approved production costs relating to the production in Norway, cf. section 7, first paragraph. Section 8 on eligible costs refer to section 7, so that only costs that can be considered production costs are eligible.

The calculation of the grant will be based on costs arising in Norway and paid to taxpayers in Norway, cf. section 8, first paragraph. This requirement includes firstly that the costs must have incurred in the production in Norway and that the connection to the activity must be documented, and secondly that the cost must be paid to the creditor in Norway, and that this must be documented.

Costs paid to taxpayers in Norway, but only partially originated in Norway, may be partially approved. The proportion of the cost that is linked to the activity in Norway may be approved. An example: If a rental car is used in the production in Norway 60 percent of the time, and abroad 40 percent of the time, 60 percent of the cost may be included in the final accounts for the incentive scheme. The grant recipient must be able to explain the distribution key for the cost.

If more than 80% of the total approved production costs will arise in Norway, the grant amount will be calculated based on the total production costs within the EEA, cf. section 7, second paragraph.

Costs shall not exceed market prices, cf. § 8 third paragraph. The market price will be subject to a discretionary assessment for the specific product/service in question. This assessment will be made by the Norwegian Film Institute.

Costs which arise before the Norwegian Film Institute confirms receipt of the
application will not qualify as approved costs, cf. section 8 fourth paragraph.

In the event of any doubt as to whether costs meet the requirements of these regulations, the grant recipient will be responsible for documenting that the conditions are met, cf. section 8 sixth paragraph.

Costs that benefit licensees who have signed a management authorization with the Norwegian Film Makers Association (F©R) or the Norwegian Actors' Equity Association, may be approved, provided that the other conditions for approved costs are met.

All costs included in the final accounts must be VAT/MVA exclusive.

The applicant must send a written disbursement request to the Norwegian Film Institute. The disbursement request must be submitted within six months of the end of production in Norway, cf. section 12 first paragraph. The date of the end of production in Norway is set to the last day of activity on the production in Norway. Work related to administration, launch, etc. is not in this context considered as work on the production.

Disbursement is conditional upon production in Norway having been completed and the production having no unpaid direct or indirect tax liabilities to the Norwegian authorities, cf. section 12 second paragraph.

Costs not approved by the Norwegian Film Institute:

This list is not exhaustive. All costs will be subject to a concrete evaluation.

• Costs passed on and charged by/invoiced by a contractor or a subsidiary company in another country than Norway.

• Bank costs, currency costs, interest costs, and debt costs.

• Indirect producer costs / producers fee.
• Overheads/indirect costs, including administration fees.
• Credits/provisions/ and all other costs which have not been disbursed.

• Costs already financed by other funding schemes at The Norwegian Film Institute.
• Salary, reimbursement or compensation for collaborators/right holders/employees who are not liable to tax as residents in Norway.
• Salary, reimbursements or compensation paid to companies not liable for taxation in Norway.
• Costs that cannot be directly linked to an activity, such as the purchase of goods / services / work on the production, and can be documented with sub-documents.
• Surcharge on re-invoiced costs. In order for re-invoiced costs to be approved, the Norwegian Film Institute must have access to the sub-documents, which must document that these are actually incurred costs in the production in Norway- without surcharge - and otherwise in accordance with the provisions of the regulations
• Costs that have been re-invoiced from a supplier or a subsidiary in another country.
• Subsistence allowances for travels outside Norway.
• International travel-expenses.

Costs for use of services and equipment outside Norway.