Mongolia set to launch 30% location incentive

Mongolia will introduce several production incentives from January 22 under a new law in an effort to entice projects to film in the East Asia country.

The stand-out is a 30% location incentive scheme for qualifying and accredited film and television productions that take place in the country. Open to productions with a minimum spend of $500,000, the system is a cash rebate that is not linked to the tax system or other credits.

In addition, a 30% rebate system being established for film and TV projects which use a substantial number of Mongolian personnel for post-production.

There’s also a 10% cultural incentive for productions that highlight Mongolia’s unique culture and heritage. Plus a 5% Foreign Crew and Talent cash rebate for qualified foreign cast and crew.

“I’m so pleased Parliament took action and approved this new law. We must now work to ensure this initiative is launched in a way that demonstrates we are serious about developing a world class production sector in Mongolia,” said Nomin Chinbat, Mongolia’s minister of culture.

Significantly, the three schemes may be combined to generate rebates of 45% for particular projects that tick all the boxes.

Alternatively, there will also be a 20% Mongolia Film Incentive, which applies to local or joint-film productions that promote Mongolian culture and heritage to international audiences. 

One of the biggest positives of these incentives schemes is that they have no ceiling, which means even the bigger, Hollywood blockbusters, could qualify for a 30% rebate. However, the government is likely to set aside a specified budget that will be available from January when the schemes become operational.

Accessing the scheme is likely to require a Mongolian partner or the establishment of a local company and the use of some local crew.