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Investments In Films

The provision of tax relief on investment in films has been extended to 2008.

The tax breaks available for the film industry which was due to expire on 31st December 2003 have been extended to 31st December 2008. The detailed arrangements for the relief remain generally unchanged.

Tax relief is currently available to both individuals and companies, as
follows:-

  • Individuals Tax Relief Deduction of €31,750 can be claimed against income per individual per tax year. Unutilised film investment can be carried forward. You are allowed to deduct the cost of the investment from the sale proceeds of your shares in the film company in arriving at any capital gains tax computation.

  • Companies Tax Relief can invest up to €10,160,000 (€15,000,000 from 2005) in a 12 month period only €3,810,000 can be invested in any one film where over €3,810,000 is invested in a film, the excess can only be claimed if the film budget is €5,080,000 or less. Investments can be made by a single company or a group.

You are allowed to deduct the cost of the investment from the sale proceeds of your shares in the film company in arriving at any capital gains tax computation.

Conditions of the relief:
Qualifying Films: To qualify, a film must receive a certificate from the Minister for Arts, Heritage, Gaeltacht and the Islands.A certificate will not be issued if filming has already commenced. A separate Irish incorporated company must be established to produce each single film.

Qualifying Individuals and Companies must not be connected with the film company i.e. have control of the film company. Note that your investment in the film company is in the form of shares; you must therefore not hold a controlling interest to avail of the relief.

Filming 75% of filming must take place in the Republic of Ireland unless the Minister states otherwise.

Maximum Financing

Film Budget

% of Cost Allowable

€5,080,000 or less

66%

€5,080,000 - €6,350,000

55% - 66%

€6,350,000 +

55%

Limits will be increased by 10% if:

    * Photography commences between October and January (inclusive)
    * Post production work is carried out in the Republic.

We will help you utilize this relief by finding the right film for you
as an individual or corporate investor. For film makers, we can ensure
your film successfully applies for it's certificate. We will also help
you find investors for your films. This scheme terminates on 31st
December 2008.

new regulations on Film Relief

Under the regulations governing the scheme of Film Relief (Section 481 of the Taxes Consolidation Act, 1997) and the provisions of Section 28 Finance Act, 2004 (which recently came into operation after an Order was made by the Minister for Finance) all applications for a certificate in relation to a film on or after 1 January 2005 must be made to the Revenue Commissioners.

Before any certificate is issued the Minister for Arts, Sports and Tourism must issue an authorisation to the Revenue Commissioners that the film involved is within certain eligible categories and satisfies certain criteria.

The new regulations set out the detail of the new administrative arrangements, specifically:

  • The categories of films eligible for certification and the criteria to be considered by the Minister for Arts, Sports and Tourism when issuing an authorisation.
  • The requirements of the Revenue Commissioners in relation to various matters, including:
    • Information and documentation to be submitted
    • The types of records a qualifying company must provide as evidence in relation to expenditure on a film
    • The items to be included in a compliance report in relation to a film
  • The type of expenditure on the production of a film which may be accepted by the Revenue Commissioners and what qualifies as "eligible goods, services and facilities" for the purposes of the relief.




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Satisfied Client, name and address with firm. 

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