TAX CREDIT AND FUNDS

Mestiere Cinema supports foreign Production Companies

Mestiere Cinema supports foreign Production Companies in following the correct procedures in order to get the benefit of Italian Tax Credits which apply to foreign Feature Films, TV Movies, Series and Dramas, whose production, or any part of it, takes place in Italy

ITALIAN TAX CREDIT. What it is and how it works.

The italian tax credit is an incentive for international Film or TV and WEB productions entirely or partially shot in Italy.

The Italian Tax credit has been recently revised and now allows a saving of 30% on qualifying production costs. This 30% asset applies up to the 75% of THE FILM OVERALL BUDGET.

In order to benefit from the Italian Tax Credit, the Foreign Production Company need to appoint an Italian Production Service Company to work on the film project. Only Italian Production Companies who meet specific legal requirements can apply for the tax credit.

The benefit of the tax credit is immediate. It can be used right during production through the Italian Production Company by monthly offsetting tax debts resulting from the accrued production costs. This is the key point of the italian tax credit: the saving is immediate.

Costs incurred in other EU countries are eligible too as long as they do not exceed 1/6 of 75% of the film overall budget and are paid by the Italian Production Company.

The procedure is simple: the Italian Production Service Company submit to the Ministry (MIBAC) a preliminary application that includes the cultural eligibility test (for more details see link). The Ministry reply within 30 days from the submission date. Once approved, the Italian Production Company can start to use the tax credit granting prompt saving to the Foreign Production Company.

The second act is the Final Application that can be submitted within 180 days after the end of all production works. A detailed cost report and a certification by an indipendent chartered accountant must be attached to the final application. Final cost cannot exceed 10% of the cost stated in the Preliminary Application.

The new system of Italian Tax Credit now envisages the additional benefit of selling the credit to Banks. This will enable the Italian Production Company to speed up the process of transferring to Foreign Production Company the residual amount of accrued tax credit after the end of the production.

Mestiere Cinema has been providing for years the benefit of Italian Tax Credit for International Features and TV Productions such as: Fox Searchlight, Netflix, Warner Bros., Amazon, Sympathetic Ink, Summerstorm, UFA Fiction, Barefoot Films, Bavaria.

The Italian Tax Credit gives a saving of 30% on production costs

For more information
go to Italian Tax Credit or click here to download

Mestiere Cinema has built up a close relationship with Italian regional and local Film Commissions, some of which have set up film funds and other benefits to help productions working in their territory.

Italia Film Commission website

Read more about
Mestiere Cinema srl

Cannaregio 3597
30121 Venice, Italy

Ph. +39 041 715658
Fax +39 041 5231741

info@mestierecinema.it
VAT IT02655420277