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

Description

Law n° 220 of 14 November 2016 'Disciplina del cinema e dell'audiovisivo' establishes the 'Film and Audiovisual Fund' aimed at funding works through tax credits, automatic contributions and selective contributions.

The law recognises six types of tax credits:

Tax credits for production companies (article 15);
Tax credits for distribution companies (article 16);
Tax credits for film exhibitors, technical industries and post-production companies (article 17);
Tax credits for strengthening the film supply (article 18);
Tax credits for attracting investments in film and audiovisual products to Italy (article 19);
Tax credits for companies that do not belong to the film and audiovisual sector (article 20).

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
Carla Felli
Phone: +39 06 6723 3329
Email: carla.felli@cultura.gov.it
Mariassunta Bottoni
Phone: +39 06 6723 3224
Email: mariassunta.bottoni@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

Development
Production

Budget

€462,000,000 (€157,000,000 for cinema; €248,000,000 for audiovisual works; €5,000,000 for videogames; €16,000,000 for teaching and educational products)

Eligible projects

Feature Film
Short Film
TV series
Documentary
Animation
Web product
Teaching and educational products, Music videos

Beneficiaries

Italian production company

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

Development of web film and audiovisual works (no short films): 30% of expenditure
Production of films: 40% of expenditure (independent producers); 25% of expenditure (non-independent producers)
Production of teaching and educational works: 40% of the eligible production costs
Production of works for television and web: from 30% to 40% of expenditure

Requirements

Italian nationality must be requested
Minimum paid-up share capital: € 40,000 (€ 10,000 for short films, teaching and educational works)
Minimum net assets: € 40,000 (€ 10,000 for short films, teaching and educational works)

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

Payment schedule

40% on approval of the preliminary request; the remainder (60%) on approval of the definitive request
100% of the approved amount on presentation of the definitive request
The request must be submitted no earlier than 60 days before the start date of 4 consecutive weeks shooting or the halfway point (50%) of shoot days
DGCA will inform applicants of the outcome within 60 days from the date of submission
The applicant presents the definitive request
DGCA will communicate the amount of the remaining credit within 60 days from receiving the definitive request