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

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

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

Italian Film or co-production
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 contribution

National distribution: €2,000,000 per year
International distribution:: €1,000,000 per year

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

ATECO code J 59.13
Subject to taxation in Italy or other European Economic Area country
Registered office in the European Economic Area
National distribution only - Distribution costs must be no lower than:
- for fictional feature films: €40,000
- for documentaries and short films: €20,000

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.