Tax Credits for Distribution Companies — Law n° 220/2016 (art. 16)

Description

Tax credits for distribution 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.

Contacts

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

Distribution

Eligible projects

Feature Film
Short Film
TV series
Documentary
Animation
Web product

Beneficiaries

Italian production company

Maximum contribution

National distribution: €2,000,000 per year
International distribution:: €1,000,000 per year

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 7 of the implementing decree).

Type of contribution

Tax credit

Tax credit rate

Between 15% and 40% of national distribution costs for films of Italian nationality (40% for works distributed directly by independent producers in the ways provided for by law), up to a maximum of €2,000,000 per year.
• 30% of international distribution costs for films of Italian nationality (films, television works, web products), up to a maximum of €1,000,000 per year.

Requirements

Italian nationality must be requested

ATECO code J 59.13
Subject to taxation in Italy or other European Economic Area country
Registered office in the European Economic Area
National distribution only - Distribution costs must be no lower than:
- for fictional feature films: €40,000
- for documentaries and short films: €20,000

Payment schedule

DISTRIBUTION IN ITALY

Definitive request to be submitted no later than 18 months from first theatrical release (calendar date)
No later than 60 days from receipt of the request, DGCA communicates the outcome – where successful, the tax credit can be used from the 10th of the month following the communication.

INTERNATIONAL DISTRIBUTION

Definitive request to be submitted no later than 18 months from first theatrical release (calendar date).
No later than 60 days from receipt of the request, DGCA communicates the outcome – where successful, the tax credit can be used from the 10th of the month following the communication.

Notes

Tax credits are granted to television and web channels for international distribution only.