CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. EC Approves Italian Filmmakers' EUR104m Tax Concessions

EC Approves Italian Filmmakers' EUR104m Tax Concessions

by Ulrika Lomas, Tax-News.com, Brussels

29 December 2008


The European Commission has approved under EC Treaty state aid rules a EUR104m Italian tax incentive scheme for film production running until December 31, 2010. The Commission found that the scheme was compatible with the cultural derogation of the EC Treaty, in line with the Cinema Communication rules concerning aid to film production.

Competition Commissioner Neelie Kroes commented:

"The good cooperation from the Italian authorities enabled the Commission to assess the compatibility of the scheme quickly. I welcome the use of the cultural criteria made by the Italian authorities to increase the variety of films available to European citizens."

The main objective of the Italian film support scheme is to maintain and enhance the cultural potential of the film sector. In Italy, the fragmentation of the film sector and the strong presence of the US majors in distribution and production have combined to create a strong presence of mainly US commercial films with high budgets. Up to now, the Italian film sector has focused increasingly on films with limited audience appeal, leading to a near dominant position for a few major commercial films.

The scheme introduces tax credits to support the production of European cultural films and films of special cultural interest, as well as a tax shelter for European cultural films. The tax credit and tax shelter are available to companies which are taxable in Italy and the tax credit is available against all types of taxes.

The Commission's assessment of the tax credit and tax shelter for film production was based on the State aid rules in the 2001 Cinema Communication, applying the derogation in Article 87.3(d) of the EC Treaty, allowing aid for cultural activities under certain conditions.

In line with the Cinema Communication the support is targeted towards cultural products, where the maximum aid intensities are limited to 50%, with the exception of low budget and "difficult" films, where it could amount to 80%. The applicable territorial conditions are below the maximum territorial requirement allowed in the Cinema Communication.

The Italian authorities also committed to implement any changes that may be required by changes to the state aid criteria in the Cinema Communication before the end of the scheme.

TAGS: Italy

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »