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Tax Credits for companies that do not belong to the film and audiovisual sector — Law n° 220/2016 (article 20)

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Description

Tax credits for companies that do not operate in the sector 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 the production and distribution in Italy and abroad of Italian film and audiovisual works.

Contacts

Link to the call Print Tab

Data sheet

Production

  • Italian Film or co-production

Distribution channel

  • Cinema

Film industry branch

  • Production

Eligible projects

  • Feature Film

Beneficiaries

  • Companies operating outside the film industry

Maximum contribution

€1 million per company, €2 million for groups of companies.

Type of contribution

  • Tax credit

Tax credit rate

    20% of the cash contribution paid as risk investment.
    The rate increases to:

    • 30% for joint venture contracts stipulated and registered by 31 December 2019;
    • 40% for cash contributions to the production of works in receipt of selective grants.

Requirements

  • Italian nationality must be requested
  • Financial resources to cover production cost of the film;
  • Contributions equivalent to 5% (minimum) of the eligible production cost;
  • The amounts recognized may not exceed 70% of the grant (where tax rate is 20%) or 60% (where it is 30% or 40%).

Payment schedule

Preliminary request:

  • Company must submit the preliminary request no later than 30 days from registering the contracts and no later than the request for screening clearance;
  • DGCA will communicate the tax credit rate no later than 60 days from receipt of the request.

Definitive request:

  • The company submits the definitive request:
    • having requested Italian nationality;
    • after (within max. 180 days) obtaining screening clearance;
    • no later than 24 months from submission of the preliminary request (12 months for short films/36 for animation)
  • Within 30 days of the submission, the company provides DGCA with the necessary banking documentation;
  • Within 60 days of receiving the request, DGCA communicates the tax credit due.

Notes

Tax credits for companies not operating in the sector are non-transferable.

Fundings in focus

All fundings