The agency receives a percentage of all net receipts generated through the exploitation of the audiovisual work, the ‘recoupment percentage’, as of the first euro in net receipts, in first rank and at the same time as the other financiers. This percentage is set provisionally by the jury and included in the decision of support allocation.
|Recoupment percentage = support / financing definitively acquired for the audiovisual work|
Repayment is entirely independent of the support amount and must conform to the approved recoupment scheme (see ‘Payment’). If earnings are low, the repayments may be lower than the support received, while if earnings are high, the repayments may be higher than the support received.
When is the recoupment percentage adjusted?
|Please note! The recoupment percentage is set by the jury and is only adjusted at a later date if the accepted total budget falls (recoupment percentage rises) or the aid is reduced, withdrawn or reclaimed (recoupment percentage falls). The recoupment percentage cannot fall as the result of a higher total budget.|
What are the net receipts?
All earnings from the exploitation of the audiovisual work in Belgium and abroad, including earnings from cable and private copyrights and merchandising, that do not fall under the funding of the total cost of the audiovisual work, with the exception of the reserved rights and territories of the other producers and financiers.
The following costs may be deducted from these earnings:
- tax paid to public administrations, levies on foreign earnings, the rights paid to copyright associations and the share for theater operators
- promotion and distribution expenses involved in releasing the audiovisual work, including the making of copies, as well as the expenses involved in dubbing and subtitling the versions for festivals. These expenses must be in reasonable proportion to the sales market or production expenses for the audiovisual work
- the distribution provision and sales commissions according to prevailing international standards
- the collection account fee
- the minimum guarantees, provided they were used to finance the project
- court costs relating to sums to be collected
Deferred payments and participations cannot be deducted from the earnings.
Please note! In the event that the project is overfunded, the overfunded portion will also be viewed as earnings to which the recoupment percentage applies.
The agency will monitor net receipts for a minimum of 5 years and a maximum of 15, depending on the earnings generated. You must keep detailed information on all revenue and expenditure, known as the ‘exploitation account’, (see also ‘Compulsory reports’).
The exploitation account for the previous calendar year must, on 31 March of each year, be sent to the agency starting by the year following that of the first public screening, together with an audit report. In the first 5 years, you must produce these documents on your own initiative. After the first 5 years, you need only do so at the agency's request.
The first public screening is the first public screening at home or abroad, including festivals and premières.
Within 30 calendar days of submitting the exploitation account, you will pay any amounts owing to account number BE 65 3751 1174 5796 belonging to the Hermesfonds, Koning Albert II-laan 35/bus 12, 1030 Brussels, quoting the structured payment details you received from the agency. If you are unable to use the structured payment details, quote at least the application file number and the title of the project.
This obligation does not apply in territories with a Collection Account Management Agreement in which Screen Flanders is named as the beneficiary and through which it receives statements and payments directly from the Collection Account Manager.