World-class Filmmakers' Incentives Act

Sendie TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 JUL 10 P3:13 SENATE RECEIVED 61 S. No. _ Introduced by Senator Jinggoy Ejercito Estrada AN ACT PROMOTING THE PRODUCTION OF OUTSTANDING AND WORLD-CLASS FILIPINO MOTION PICTURES, PROVIDING INCENTIVES TO FILMMAKERS AND ACTORS CLAIMING HONORS INTERNATIONAL FILM COMPETITIONS AND FOR OTHER PURPOSES EXPLANATORY NOTE On many occasions, Filipino filmmakers and artists brought honor and pride to the country for winning top prizes in international film festivals around the world. In 2009, Brillante Mendoza was hailed as Best Director at the 62nd Cannes Film Festival for his film "Kinatay." Mendoza bested renowned directors like Ang Lee, Pedro Almodovar, Jane Campion and Quentin Tarantino, and became the first Filipino to win the coveted prize from the world's most prestigious film festival. Prior to this feat, Mendoza's cinematic works also received critical acclaim and recognition across the globe. Lav Diaz, another celebrated Filipino auteur, also won major awards from the festivals circuit, including the Golden Leopard from the 2014 Locarno International Film Festival, the Silver Bear from the 2016 Berlin Film Festival, and the Golden Lion from the 73ra Venice International Film Festival. Veteran thespian Jaclyn Jose became the first Filipina to bag the Best Actress award at the Cannes Film Festival for her stirring portrayal in "Ma' Rosa," while

accomplished actor John Arcilla won the Volpi Cup for Best Actor at the 78th Venice Film Festival for his outstanding performance in "On The Job: The Missing 8." These achievements exemplify the remarkable artistic talent and skill of Filipinos, on par with the world's best, which deserve to be encouraged and commended. In the recent years, several other members of the Filipino movie industry bagged prestigious awards from various international bodies. The movie, "Iti Mapukpukaw (The Missing)" directed by Carl Joseph Papa was hailed as the Best Animated Film in the 17th edition of the Asia Pacific Screen Awards in Australia. Multi-awarded actress Judy Ann Santos-Agoncillo won as Best Actress in the 45th Fantasporto Film Festival in Porto, Portugal for the movie "Espantaho". This bill seeks to promote and support the production of Filipino films that are world-class and globally competitive through the provision of incentives and tax exemptions. It also aims to foster excellence in the field of arts, specifically in film, and catalyze the advancement of Philippine cinema towards another golden age. In view of the foregoing, the passage of this bill is earnestly sought. SINGÇOY BERCITO ESTRADA

SPATIC TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 JUL 10 P3:13 SENATE RECEIVED BY. S. No. _ Introduced by Senator Jinggoy Ejercito Estrada AN ACT PROMOTING THE PRODUCTION OF OUTSTANDING AND WORLD-CLASS FILIPINO MOTION PICTURES, PROVIDING INCENTIVES TO FILMMAKERS AND ACTORS CLAIMING HONORS IN INTERNATIONAL FILM COMPETITIONS AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as the "World-Class

2 Filmmakers' Incentives Act".

Sec. 2. Declaration of Policy. - The State recognizes the role and contribution

4 of films as an effective medium in the formation and strengthening of the patriotic 5 consciousness, nationalist spirit and social values among its citizens. It is hereby 6 declared the policy of the State to promote and support the development, growth and enrichment of the local film industry, which includes both mainstream and independent films, produced by Filipino filmmakers or production entities that freely interpret and examine the Filipino experience with excellent production quality, unique voice and artistic integrity. Towards this end, the State shall grant incentives to filmmakers or production entities which produced high-quality film projects, received critical acclaim and recognition from prestigious international film festivals, and brought honor and pride to the country.

Sec. 3. Incentives for Filipino Filmmakers. - The production of outstanding

and world-class Filipino films is hereby declared a policy of the State. For this

purpose, award-winning Filipino films in respected international film competitions and cinema festivals are hereby accorded the following incentives: a) A grant of Five million pesos (P5,000,000.00) to the film production or entity that produces the award-winning full-length feature or documentary film. A grant of Two million pesos (P2,000,000.00) shall be awarded to winners of technical excellence which may include recognitions in direction, screenplay, cinematography, editing, production design, music scoring, sound, and other aspects of filmmaking; b) Full tax exemptions relevant to the screening of the film and its commercial exhibition, including those levied by local government units (LGUS); c) The award winning film shall be considered and shall have the honor of being given an automatic rating of an "A" film being granted by the Cinema Evaluation Board;

Sec. 4. Eligibilities for Incentives. - To be eligible to receive incentives

provided under this Act, the award-winning film must be made or produced by a Filipino filmmaker or production entity, as the case may be. The total production budget for each of the full-length feature or documentary film must not exceed Ten million pesos (P10,000,000.00), while the total production budget for the short feature or documentary film must not exceed Five million pesos (P5,000,000.00).

Sec. 5. Incentives for Filipino Actors and Actresses. - Filipino actor or actress,

either in leading or supporting role, who wins an international award in prestigious international film festivals shall be provided the following prizes and recognitions: a) A grant of Two Million pesos (P2,000,000.00); b) Exemption in the payment of income tax, including value added tax (VAT) for services rendered, for the particular year the actor wins the award.

Sec. 6. Preservation in the Philippine Film Archive. - The award-winning films,

whether full-length feature, documentary or short film, will automatically be part of the Philippine Film Archive for preservation.

The ownership, copyright, distribution, exhibition and use rights of the award- winning films which are recipients of incentives under this Act shall be vested in and remain with the producer, writer, artist or other originator of the work.

Sec. 7. List of International Film Festivals. - The Film Development Council of

the Philippines (FDCP), after consultation with the National Commission for Culture 6 and the Arts (NCCA), film producers, industry stakeholders and guilds, shall create, update and publish the list of international competitions and film festivals that shall be considered for the implementation of this Act.

Sec. 8. Appropriations. - A special fund amounting to Fifty million pesos

10 (P50,000,000.00) which shall be sourced from the funds of the Philippine Amusement and Gaming Corporation (PAGCOR) is hereby created. Other sums as may be necessary to carry out the provisions of this Act shall be included in the General Appropriations Act.

Sec. 9. Implementing Rules and Regulations. - The Film Development Council

15 of the Philippines (FDCP), in consultation with the Film Academy of the Philippines and the National Commission for Culture and the Arts (NCCA), shall promulgate the implementing rules and regulations within ninety (90) days from the effectivity of this Act.

Sec. 10. Separability Clause. - If any section or part of this Act is held

unconstitutional or invalid, the other sections or provisions not otherwise affected shall remain in full force and effect.

Sec. 11. Repealing Clause. - All laws, decrees, executive orders, rules and

regulations, issuances or any part thereof inconsistent with the provisions of this Act are deemed repealed and modified accordingly.

Sec. 12. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in at least two (2) national newspapers of general circulation, whichever comes earlier. Approved,