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

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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 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

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 quota on cost

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

  1. expenses borne when acquiring goods and services from individuals and bodies that are fiscally resident in Italy;
  2. 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;
  3. 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

    Post production and executive production businesses will be recognised a tax credit equal to 40% of the eligible production cost of the work when making audio-visual works, or part thereof (minimum one day shoot) in Italy, using personnel from Italy or the European Economic Area, up to a maximum of €20,000,000 per year.

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).

Payment schedule

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

Fundings in focus

All fundings