Tax Credits for attracting investments in film and audiovisual products to Italy — Law n° 220/2016 (article 19)

Description

Tax credits for attracting investments in film and audiovisual products to Italy 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 production and are reserved for Italian executive production companies that make films or parts of films in Italy on the behalf of foreign production companies.

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

Foreign film

Distribution channel

Cinema
Television
Web

Film industry branch

Production

Eligible projects

Feature Film
Short Film
TV series
Documentary
Animation
Web product

Beneficiaries

European production company
Non-European production company
Italian executive production company

Maximum contribution

€20,000,000

Maximum quota on cost

The tax credit may be granted, up to a maximum of 80% of the overall production cost, for:

expenses borne when acquiring goods and services from individuals and bodies that are fiscally resident in Italy;
expenses borne when acquiring goods and services in Italy from businesses that have legal headquarters and fiscal residency in Italy or are subject to taxation in Italy, or – when conditions of reciprocity exist – from businesses with nationality and headquarters in another country in the European Economic Area that have a branch, agency or substation in Italy, where it carries out its activity and is subject to taxation in Italy;
expenses borne for individual persons not fiscally resident in Italy but subject to taxation in Italy in relation to the specific income generated by this expense.

With the following limitations:

financial, insurance and guarantee costs may be considered up to a maximum of 7.5% of the overall production cost;
above the line expenses may be considered up to a maximum of 30% of the overall production cost;
producer fees and general company expenses may not be considered in the eligible costs.

Type of contribution

Tax credit

Tax credit rate

40%

Requirements

Minimum paid-up share capital: €40,000 (€10,000 for the production of short films).
Minimum net assets: €40,000 (€10,000 for the production of short films).

ATECO code J 59.1
Subject to taxation in Italy
Registered office in the European Economic Area
Non associazioni culturali o fondazioni non a scopo di lucro

Payment schedule

Preliminary request:

Submission no later than 90 days before the start date of the production schedule;
Within 30 days of receiving the request, the DGCA communicates the tax credit;
The production start date must be demonstrated with the required documentation; to be submitted within 120 days of the preliminary request.

Definitive request:

Submission no later than 180 days from the end of production activities;
Within 60 days of receiving the request, DGCA communicates the tax credit due.