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Tax Credits for Production Companies — Law n° 220/2016 (art. 15)

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Description

Tax credits for production 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 and audiovisual development and production.

Contacts

Link to the call Print Tab

Data sheet

Production

  • Italian Film or co-production
  • Co-Production

Distribution channel

  • Cinema
  • Television
  • Web

Film industry branch

  • Production

Eligible projects

  • Feature Film
  • Short Film
  • TV series
  • Documentary
  • Animation
  • Web product

Beneficiaries

  • Italian production company

Maximum contribution

€9 million; potential increase to €18 million where resources from countries outside Italy constitute at least 30% of the total cost.

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 5 of the implementing decree).

Type of contribution

  • Tax credit

Tax credit rate

    • Independent producer: 40% of production costs
    • Non-independent producers: 25% of production costs

Requirements

  • Italian nationality must be requested
  • Minimum paid-up share capital: € 40,000 (€10,000 short film)
  • Minimum net assets: € 40,000 (€10,000 short film)
  • ATECO code J 59.1
  • Subject to taxation in Italy or other European Economic Area country
  • Registered office in the European Economic Area
  • Only businesses with paid-up share capital

 

Payment schedule

  • 70% (or 40%) upon approval of the preliminary request and the balance (30% or 60%) upon approval of the definitive request.
  • 100% of the approved amount, only upon submission of the definitive request.
  • The company must submit the preliminary request no earlier than 60 days before the start date of a) four consecutive weeks of filming or b) 50% of the scheduled shoot days.
  • The DGCA will communicate its decision no later than 60 days from receipt of the preliminary request.
  • The company may submit the definitive request:
    • after requesting Italian nationality;
    • within 180 days of receiving confirmation of classification;
    • within 24 months from submission of the preliminary request (12 months for short films/36 for animation)
  • The DGCA will inform the company of the credit balance due no later than 60 days from receipt of the definitive request.

Fundings in focus

All fundings