Taipei Culture Foundation - Taipei Film Commission
International Audiovisual Production Investment Notice
Implemented on Sep 18th, 2018
Article 1 Objectives
In order to encourage film, television or audiovisual producers to shoot scenes in Taipei City (hereinafter referred to as “the City”) and thereby boost the development of the film industry and increase the City's marketing opportunities, the Taipei Culture Foundation (hereinafter referred to as the Foundation) is entrusted by the Department of Cultural Affairs, Taipei City Government, accepts the application and review of audiovisual investment proposals, and this Notice is specifically formulated.
The target of International Audiovisual Production Investment Project refers to the film and television series co-financed or co-produced by a Taiwanese company and a foreign company. The film content shall have showing the cultural activities, natural landscape or historical trajectory as the filming base or have shot or post-produced the film and television series in the City or employ Taiwanese casts and crews. Taipei Film Commission (TFC hereinafter), a subordinate organization of the Foundation, shall perform the following tasks:
Article 2 Qualification of proposer
1. The proposal is the film/television series co-financed or co-produced by a Taiwanese company and a foreign company.
Article 3 Time of submission
The time of submission shall be announced by TFC - twice a year on principle. (The deadlines are the end of February and end of August each year.) the Foundation’s policy, TFC may accept conditional proposals and assemble review committees to review such proposals.
Article 4 Qualifications for Proposal
1. Proposals that comply with the following qualifications may be submitted:
(1) Production format
(a) Drama or documentary.
(b) No less than 75 minutes in length.
(c) Films shall be shot with 35mm or 16mm (or above) negatives or with a 2K RAW digital camera (or higher) and exported as a DCP 2K-4K digital file. The resolution shall be 1920x1080 pixels or higher and the sound format shall be 16/24 Bit, 48KHz, 24 frames per second.
B. Television series
(a) The total length of the television series shall be no less than 300 minutes.
(b) Television series shall be shot with high-resolution camera used in films, with 1920x1080 pixels or higher resolution, and the sound format shall be 16/24 Bit, 48KHz.
(2) After signing the contract, the proposer should produce the film/television series within three years and be commercially released in Taiwanese theaters or be broadcasted on television channel or video platform.
(3) A plan for public release and distribution is prepared.
2. Accountant-certified auditor’s report within three years (company seal and authorized representative’s seal are required for photocopy). If no accountant-certified auditor’s report is available, financial statement for profit-seeking enterprise income tax return form is required.
3. If the proposer’s company is newly registered, the company’s registration capital verification report and the latest auditor's mid-term review/review report or the self-edited financial statement one month prior to the application may be submitted to replace the accountant-certified auditor’s report.
4. The proposer’s total net worth in the balance sheet in the most recent year shall not be negative. If the proposer conducted capital increase prior to the proposal, and the worth in the interim financial statement is positive, an accountant-certified financial report for the day of capital increase is required. The day of capital increase shall be after the date of financial statement in the most recent year, and there shall be no record of insufficient funds in the most recent year.
5. Any new proposal from a current investee with an overdue project based on these Guidelines shall not be accepted.
Article 5 Review Criteria
1. Present a unique image of Taipei, employ Taiwanese casts and crews or Taiwanese post-production, animation and special effects companies.
2. The adequate and self-owned funds.
3. The feasibility of the investment proposal.
4. Financial planning, expected benefits and risk control.
5. Team performance comprehensive evaluation.
Article 6 Review Committee and Review Process
1. TFC shall assemble a review committee, the members of which shall comprise 5 to 7 experts in related fields. Representatives from government agencies shall not exceed one third of the committee.
2. Commissioner is appointed for two years and will be renewed upon expiry.
3. The Investment Review Committee may approve an investment proposal only in a review meeting where at least two-thirds of members are present, and with the support of at least half of the attending members. The investment may begin after the Department of Cultural Affairs, Taipei City Government has acknowledged the decision.
4. If the committee member is a representative from government agencies, when his or her duties as a member of a government office are dismissed, he or she may be renewed from office; if a member of the Foundation and TFC, or any other professional member is vacant, the Foundation and TFC shall recommend others to succeed.
5. Preliminary review and final review:
(1) Preliminary review: TFC conducts preliminary review of proposers’ qualifications based on the documentations submitted.
(2) Final review: Proposals that pass the preliminary review will proceed to the final review. TFC will contact the proposers to be interviewed in person. Members of the review committee shall extremely avoid conflicts of interest and remain value-free position. Before the review commences, all members shall sign a statement and agree to keep confidential of the review process. Members who violate the terms of the statement may be terminated by TFC and such record shall serve as reference for future appointments.
The proposer should sign a contract with TFC after the Investment Review Committee approves the investment proposal. If any change from the approved proposal needs to be made, such change shall be submitted to the original review committee for review and may only be changed upon consent from half of the members of the review committee.
Article 7 Investment Review
1. The total annual investment budget for this investment project is 30 million TWD.
2. Investment based on this Notice shall not exceed 49% of the total investment of the proposer’s project.
3. The review committee shall determine the amount of investment for each project respectively. In cases where an investment budget is not approved by Taipei City Council or partially excised, the amount of investment shall be deducted or adjusted accordingly.
Article 8 Signing of Contract
After being approved by the review committee, the proposer shall sign the contract with TFC within three months.
Article 9 Documentation of Proposal
1. The proposers shall submit the following documents to TFC with the proposal, printed on A4 paper in vertical layout with horizontal writing, in 15 copies, bound on the left side with the proposal application form as the cover, mailed to TFC by the submission deadline (determined by postmark date). For those using courier services (including express delivery and convenience store express delivery), deliver during office hours (9 a.m. to 6 p.m.) before the deadline, determined by TFC’s reception of the delivery. Under no circumstances shall late delivery be accepted.
2. Incomplete self-assessment form, application form, or proposal or required documentation shall be supplemented by TFC’s deadline. Failure to supplement and incomplete supplement of the above shall result in rejection of application, and TFC shall not return the submitted documentation. Proposal documentation and attachments received by TFC shall not be returned regardless of approval or rejection of proposal.
The following documentation shall be submitted as proposal:
(1) Self-assessment form (Appendix 1).
(2) Application form (Appendix 2).
(3) Documentation for the legal registration of the proposer (Appendix 2-1).
(4) Photocopy of co-financing and co-production agreements (Appendix 2-2).
(5) Proof of achievements in the past three years (Appendix 2-3): Awards, domestic box office, overseas copyright transaction income, and peripheral product sales income of previous film/television series works. Such documentation may be submitted with photocopies that need to be noted as identical to the original.
(6) Financial statement of proposer: Balance sheet and income statement of the past three years (Appendix 2-4); for proposers established for less than three years, financial statement of the period since establishment shall be submitted. Proof of no record of insufficient funds of the proposer (issued by a clearing house or bank one month prior to the deadline for the proposal).
(7) The proposal should include, but is not limited to the following:
A Title, genre, estimated length, producer’s statement, attributes of the proposed work (main artistic concept, cinematography/composition, sound/score), production format, estimated filming locations in Taipei City, and estimated production schedule.
C Production team: Including producers, director, scriptwriters, main casts, art and technical staff and their achievements in the past three years.
D Production budget sheet, including pre-production, post-production, and personnel costs (Appendix 3).
E The production team shall submit the following documentation:
(a) Photocopy of the scriptwriters’ authorized agreement (required).
(b) For adapted works, submit authorized documentation for the adaptation from the copyright holder (if applicable).
(c) Contracts or letter of intent to collaborate with the crew.
F Releasing and distribution plan, including the following:
(a) Plans for domestic and overseas release and distribution
(b) International film festivals participation plan, estimated release date, domestic and international box office, or number of views on video platforms, and estimated copyright transaction income.
(c) Estimated marketing and promotional Costs.
I. Photocopy of distribution contract or letter of intent with domestic distributors.
II. Photocopy of distribution contract or letter of intent with international distributors.
III. Photocopy of distribution contract or letter of intent with domestic theatrical distributor or video platforms.
IV. Photocopy of copyright transaction contract or letter of intent.
G Benefit assessment and contribution plan for promoting the image of Taipei.
H Business plan (Appendix 4).
I Declaration (Appendix 5).
K Other documentation required by the Foundation.
Article 10 Production Schedule for Audiovisual Work
After the proposer signs the contract with TFC, the film should be produced within three years and be commercially released in Taiwanese theaters. If the aforementioned cannot be completed within the time limit, the investee shall apply for an extension with TFC three months before the expiry of the time limit stating the reasons for the delay in writing. The extension shall not exceed six months and shall be limited to one time. In the event of failure to complete by the expiry of the extension period, the investee shall not be allowed to apply for further extension and shall pay back the investment.
2. Television series
After the proposer signs the contract with TFC, the television series should be produced within three years and broadcasted commercially on television channel or video platform. If the aforementioned cannot be completed within the time limit, the proposer shall apply for an extension with TFC one month before the expiry of the time limit stating the reasons for the delay in writing. The extension shall not exceed three months and shall be limited to one time. In the event of failure to complete by the expiry of the extension period, the investee shall not be allowed to apply for further extension and shall pay back the investment.
3. When a production cannot be completed by the due date as a result of natural disasters or emergencies, the limitations on length and number of times of extension aforementioned do not apply. However, review of project completion and relevant financial statements as per these Guidelines still apply.
4. The aforementioned natural disasters refer to typhoons, floods, draughts, extreme cold, and other extreme weather conditions, earthquakes, major fires, tsunami, and volcanic eruptions. The aforementioned emergencies refer to social unrest, war, epidemics, and nuclear incidents.
Article 11 Matters for attention
2. The investee shall provide relevant information including the script, description of main crew, production budgets, distribution and marketing plans, and profit analysis of the Film/Series to TFC and schedule relevant presentations prior to start of filming.
3. Upon completion of filming, the investee shall provide the following photos and videos for TFC’s non-commercial use: at least thirty still photos, at least thirty crew photos, among which at least five photos each of the director, producer, male lead and female lead, behind-the-scenes clip at least thirty minutes in length, which shall include interviews with the director, producer, male lead, female lead, and other main crew members. The interviews with the director, producer, male lead, and female lead shall each be at least two minutes in length.
4. The investee shall provide TFC audiovisual product in five DVDs for archiving after completion of post-production of the Film/Series.
5. The investee shall hold a kickoff press conference prior to start of filming or a wrap-up press conference upon completion of filming, as well as a press conference prior to the premiere of the Film or first-run broadcasting of the Series.
6. The producer, director, male lead and female lead shall be interviewed exclusively by the Taipei Film Commission.
7. The investee is required to submit results reports within six months of the world premiere of the film/first-run broadcasting of the television series, including news clippings and related promotional materials from each country. For films, global box office descriptions shall also be provided, while proof of broadcasting platform and viewer ratings shall be provided for television series.
Article 12 Ownership of Rights
Article 13 Review
Article 14 Investment Performance Report
The investee shall, within two months from the date of receiving TFC’s approval, submit the investment performance result report (Appendix 6) to TFC to initiate the reporting of investment results.
Article 15 Financial Report
Article 16 Payment Methods
The investment fund shall be paid in three installments:
1. First installment: upon signing of the contract, the investee shall submit the following documents to TFC to request payment of 40% of the investment fund:
(1) Invoice issued by the investee.
(2) A duplicate of the contract and certified duplicates of all contracts concluded with other investors.
(3) Proof of payments already received from other investors.
(4) Proof of funding for filming being in place or description of the funding schedule.
2. Second installment: Within two months after the wrap of filming of the Film/Series, the investee shall submit the following documents to TFC to request payment of 30% of the investment fund:
(1) Invoice issued by the investee.
(2) Financial certificate of occurred expenditures confirmed upon negotiations between TFC and the investee.
(3) Complete daily filming reports from the filming period
3. Third installment: Within six months after the conclusion of the Film/Series project, the investee shall submit the following documents to TFC to request payment of 30% of the investment fund:
(1) Invoice issued by the investee.
(2) Financial certificate of occurred expenditures confirmed upon negotiations between TFC and the investee.
In the event the project fails to conclude, payment of the third installment shall not be made and the investee may not apply again within three years and such shall be recorded for reference in future reviews.
Before payment of the third installment, the investee shall submit the following documents to TFC for review prior to the first-run commercial screening/broadcasting:
(1) Fifteen copies of list of filming locations in Taipei City
(2) Fifteen copies of each of the following in DVD format: at least thirty still photos, at least thirty crew photos, among which at least five photos each for the director, producer, male lead and female lead, behind-the-scenes clip at least thirty minutes in length, which should include interviews with the director, producer, male lead and female lead and other main crew members. The interviews with the director, producer, male lead and female lead should each be at least two minutes in length.
(3) Five DVDs of the audiovisual product of the Film/Series that has completed post-production.
Within two months after review and approval, the investee shall submit Investment Result Report to TFC to initiate the reporting of investment result.
Within six months after release of the Film, the investee shall submit Distribution Result Report as well as one unencrypted DCP of the screening version of the Film and one copy of official trailer file of the Film to TFC for conclusion of the project.
Within six months after the first-run broadcasting of the Series, the investee shall submit Distribution Result Report and one copy of official trailer file of the Series to TFC for conclusion of the project.
Article 17 Conclusion of Project
Article 18 Assessment, Cancellation, and Termination of Investment
In order to assess the effectiveness of the investment, TFC may conduct an administrative assessment of the actual implementation of the investment case to understand that the execution time, content, and schedule are in compliance with the original plan, and if necessary, the investee will be required to submit an administrative assessment report.
In the event of any of the following, TFC may include such record in future review of investment proposals depending on the severity. For major violations, TFC may also cancel or terminate part or the entire originally approved investment, and the investee shall return part or the entire invested amount. In such cases, the investee may not submit another proposal to this program for one year:
1. Not conforming to this Notice.
2. Violation of the investment contract.
3. The proposal, performance report or the attachments thereof submitted is false and in serious violation
4. Upon verification of infringement of third party’s copyright.
5. Upon verification of use of improper methods to affect the impartiality of review committee.
6. Refusal to cooperate with the auditing.
7. Violations of relevant laws.
After being informed of obligation to return the invested amount, if the investee fails to deliver before a due date, the case shall be referred to compulsory enforcement.
The final installment shall not be paid to invested projects that have not been screening/broadcasting commercially or for which the contribution plan has not been executed. If the project is not concluded within the time limit, the investee may not apply again within three years and such shall be recorded for reference in future reviews.
Article 19 Closing of Investment
Article 20 Additional Regulations