Romania introduces new contributions for on-demand audiovisual media service providers

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Romania recently adopted law no. 190/2022 (“Law 190”), which transposes the Audiovisual Media Directive and introduces amendments to Government Ordinance no. 39/2005 regulating new contributions to the Romanian Film Fund. The newly created additional contributions are as follows:

  • a monthly contribution of 3% on the price of audiovisual works downloaded through data transmission services, including the Internet or by telephone, for providers of on-demand audiovisual media services;

  • a contribution of 4% income that providers of on-demand audiovisual services derive from individual transactions or subscriptions to view audiovisual works through data transmission services such as the Internet or telephone.

The “income” from which the 4% contribution to the Cinema Fund will be calculated for EU-based suppliers is limited to income obtained in Romania only. The new contributions do not apply to suppliers having achieved a turnover of less than 65,000 euros during the previous financial year, or whose audience is less than 1% of the total number of subscribers at the national level for data transmission services providing high-speed Internet access.

According to the new law, on-demand service providers can choose to directly finance a film production up to 40% of the amount due to the Romanian Film Fund at the request of the film producers and after prior notification to the Romanian national cinema. Center. However, only certain film productions are eligible for such direct funding.

Although the first deposit and payment deadline is August 25, 2022, some practical aspects of the actual deposit and payment are not entirely clear at this time. In addition, the wording of Law 190 creates further confusion and ambiguity regarding the timing of the deposit and payment of the 4% contribution, as there is conflicting information on the deposit and payment of the 4% contribution in different parts of the law.

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