Belgium Extends Incentive Scheme To Short Films

by Ulrika Lomas, Tax-News.com, Brussels

15 January 2010

Previously limited purely to feature-length films, the Belgian tax incentive scheme known as “tax shelter” has now been extended to include any audiovisual work, providing vital support for the country’s cinematography industry.

From January 1, 2010, by virtue of a recent statutory modification in accordance with the law of December 21, 2009, both short and medium-length films benefit from the welcome tax break.

The fiscal incentive scheme previously applied only to companies that invested in feature-length films of at least one hour’s duration. However, in April 2009, Belgian senator Philippe Mahoux put forward a proposal to extend the measure to films of less than 60 minutes.

Defending his proposal, Mahoux emphasized the fact that short films often serve as a springboard for young filmmakers.

The Belgian tax shelter scheme grants exemption from profit realized by any company seeking to invest in the production of a Belgian audiovisual work. The exempt sum is equal to 150% of the amount invested, either in the form of a loan or direct investment.

Although certain conditions and limits apply, tax experts estimate that the scheme enables a company to recover around half of its investment in tax savings.

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