Tax Credits for Production Companies — Law n° 220/2016 (art. 15)

Description

Tax credits for production companies allow companies to offset tax liabilities (IRES – corporate income tax, IRPEF – income tax, IRAP – regional income tax, VAT, social security and insurance contributions) with credits accrued following an investment in film and audiovisual development and production.

Contacts

Stefano Bisignano – MiC-DGCA
Phone: 06.67233410
Email: stefano.bisignano@cultura.gov.it

Link to the call Print Tab

Data sheet

Production

Italian Film or co-production
Co-Production

Distribution channel

Cinema
Television
Web

Film industry branch

Production

Eligible projects

Feature Film
Short Film
TV series
Documentary
Animation
Web product

Beneficiaries

Italian production company

Maximum contribution

€9 million; potential increase to €18 million where resources from countries outside Italy constitute at least 30% of the total cost.

Maximum quota on cost

Tax credits and other State support may not, all together, exceed 50% of the cost of the audiovisual work (this increases to 60% and 100% for certain types of works – see article 5 of the implementing decree).

Type of contribution

Tax credit

Tax credit rate

Independent producer: 40% of production costs
Non-independent producers: 25% of production costs

Requirements

Italian nationality must be requested
Minimum paid-up share capital: € 40,000 (€10,000 short film)
Minimum net assets: € 40,000 (€10,000 short film)

ATECO code J 59.1
Subject to taxation in Italy or other European Economic Area country
Registered office in the European Economic Area
Only businesses with paid-up share capital

Payment schedule

70% (or 40%) upon approval of the preliminary request and the balance (30% or 60%) upon approval of the definitive request.
100% of the approved amount, only upon submission of the definitive request.
The company must submit the preliminary request no earlier than 60 days before the start date of a) four consecutive weeks of filming or b) 50% of the scheduled shoot days.
The DGCA will communicate its decision no later than 60 days from receipt of the preliminary request.
The company may submit the definitive request:
- after requesting Italian nationality;
- within 180 days of receiving confirmation of classification;
- within 24 months from submission of the preliminary request (12 months for short films/36 for animation)
The DGCA will inform the company of the credit balance due no later than 60 days from receipt of the definitive request.