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THE ITALIAN TAX CREDIT HAS BEEN CONFIRMED UP TO DECEMBER 2015

For the Italian Production Company only:
-Profit used to produce Italian Films (Feature, Documentary, Animation) in the following years are not taxable

Cultural Test: Production Service Tax Credit
-2 requirements between A1, A2, A3 and A5
-50 points (over 100)

Cultural Test: Production and Co-Production Tax Credit
-2 requirements between A1, A2, A3 and A4
-50 points (over 100)

What's important to remember:
Limits in using the tax credit
-It can be cumulated with other EU scheme up to 50% of the overall production costs
-It can be up to 80% in case of the following:
1. "Difficult" Films (Director's first and/or second time films, Documentaries, Shorts, an Italian Film considered of "Cultural Interest" with more than 70 points or films produced by Film Schools that are recognized by MIBAC)
2. "Low Budget Films" (less than €1.500.00)
3. Costs considered for the Italian Tax Credit cannot be considered for another EU scheme (no "double dipping")
4. Production and Co-Production:
European Union (EU): Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic,m Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom
5. Production Service Tax Credits (EEA)
All EU countries plus Iceland, Lichtenstein, and Norway

Before applying for the Tax Credit:
-Application to the "Agenzia delle Entrate"
-Communication with MIBAC and approval

After the application process:
-Application (max 30 days after completion of activities) to MIBAC and signed by the legal representative of the Producer and includes a certification of costs.

When and how to use it:
-Costs are accrued in the following month
-Reducing the amounts to be paid through the F24 Form (social securities, VAT tax, Government and Regional taxes,etc.)

The "A.P.E" position.. (Italian Association of Production Service Companies)
All Associates agree that 100% of the tax credit received and used belongs to the film for which it has been received

Of course each Associate will be free to propose a proper fee that should cover the work, formalities and responsibilities needed to comply with all rules and regulations.


ITALY'S NEW CULTURE MINISTER NAMED; ARTS BUDGET REINSTATED TO 2010 LEVELS

Galan’s entry is accompanied by the executive branch of the government reinstating the overall arts budget back to 2010’s levels of $608m (€428 m):
"Arts fund has been stabilized and the tax credit too, will be stable and permanent.” the Government said. Italy’s tax credit law was just renewed for a second run through 2013. It allows foreign productions to reap benefits up to 25% of production spend.

Link: http://www.screendaily.com/news/europe/italys-new-culture-minister-named-arts-budget-reinstated-to-2010-levels/5025295.article


ITALIAN GOVERNMENT APPROVES CONTINUATION OF FILM TAX INCENTIVES

Link: http://www.screendaily.com/news/europe/italian-government-approves-continuation-of-film-tax-incentives/5024298.article


TAX INCENTIVES FOR THE FILM BUSINESS - LEGGE FINANZIARIA 2008 - LAW 244 OF 12/24/2007

The national companies for executive production (“Production Services”) and post-production are granted a tax credit for the tax year following that in course at 31 December 2007 and for the two tax years following, regarding films or parts of films shot on national territory, utilizing Italian labour, commissioned by foreign producers. Said tax credit amounts to 25 per cent of the production cost of an individual work but in any case with a maximum limit per film of Euro 5.000.000

Click on the link below for the full text of the law

Link: http://ape-italy.com/interno.asp?lang=eng&id_dettaglio=&id=18&sezione=RISORSE