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

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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 credit, 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 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

Link to the call Print Tab

Data sheet

Production

  • Italian Film or 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 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

The work must meet cultural eligibility requirements.

The applicant distribution company must have their registered office in the European Economic Area and be resident for tax purposes in Italy.

Distribution costs must be no lower than:

  • for fictional feature films: €40,000
  • for documentaries and short films: €20,000 

Independent producers that distribute their own films:

  • must not be controlled by a film distribution company
  • the film must not be co-produced or funded by a film distribution company

The application for tax credits must be submitted to DGCA:

  • within 180 days of the date on which the film is first released in cinemas for national distribution
  • within 18 months of obtaining a screening authorisation for international distribution or delivery of the answer print of the audiovisual work or web product for international distribution. 

Payment schedule

  • Within 60 days of receiving the preliminary application, and after checking the availability of funds, DGCA will inform applicants as to whether or not their works meet cultural eligibility requirements.

Notes

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

Fundings in focus

All fundings