Cinema and audiovisuals, the great opportunity is Italy

MANUELA STEFONI

11 November 2016

MANUELA STEFONI

11 November 2016

Italy has a rich and varied culture and landscape

ROME -- The Italian Government is trying to attract foreign investments to Italy in the film and audio visual industry.

The reason for this is that Italy is a country with the richest and most varied culture and landscape. It offers a whole range of different locations in terms of natural environments or related to art and architecture, providing solutions for all kinds of film or audiovisual product and for all sorts of promotional or business initiatives.

Public institutions are fully engaged in supporting the film industry at a central level and also in the more remote villages of the country. The production companies that decide to produce their work in these areas are well supported by authorities providing indications and logistic support for filming or organizing events in these areas. Professionals with a strong expertise may also assist in providing financial backing.

In particular, there are many different forms of economic support available in Italy for international productions that can cover a range of different aspects of production. These are essentially divided into two categories -- the first being the funds issued by the central State that are also subdivided into tow sub-categories of “direct funds” that are highly selected and granted as a returnable loan, or “tax credit,” which are assigned automatically and entail tax rebates.

Then there are the funds made available by the Italian regions, that vary in terms of contribution size, type of financial product, beneficiary eligibility, selection criteria and how the funds are paid out.

The national funds are earmarked for projects that are approved as being culturally relevant pursuant to the Italian Legislative Decree 28/2004 and the decree of Aug. 13, 2013 -- “technical means for the support of film production and distribution.”

The various funds include:

Funds for feature length films of cultural relevance

First and second full feature fund

Short film fund

Original screenplay development: funds earmarked for the developments of full feature film (fiction, documentaries and animation).

Film tax credit for producers: the tax credit consists in the possibility of paying off tax debts (Corporate tax, Income tax, Regional tax, VAT, social insurance and pension dues) with the credit accumulated thanks to investments in film.

Film tax credit for executive production of foreign films: the tax credit consists in the possibility of paying off tax debts (Corporate tax, Income tax, Regional tax, VAT, social insurance and pension dues) with the credit accumulated thanks to investments in film. Tax credit can be applied for by Italian executive production companied that produce films or part of films on commission from foreign production companies on Italian soil.

Film tax credit for outside investors in cinema production: the tax credit consists in the possibility of paying off tax debts (Corporate tax, Income tax, Regional tax, VAT, social insurance and pension dues) with the credit accumulated thanks to investments in film. The External Tax Credit can only be accessed by companies that are not part of the film production process that invest in the production of Italian films through profit sharing agreements.

Film tax credit for distributors: the tax credit consists in the possibility of paying off tax debts (Corporate tax, Income tax, Regional tax, VAT, social insurance and pension dues) with the credit accumulated thanks to investments in film. A tool reserved for distribution companies that distribute Italian films on Italian soil.

Audiovisual tax credit for independent TV and web producers (Italian works and co-productions): 15% of tax credit calculated on the eligible expenses incurred by independent producers of works of Italian nationality mainly conceived for television and web broadcasting. The tax credit consists in the possibility of paying off the tax debts (Corporate tax, Income tax, Regional tax, VAT, social insurance and pension dues) with the credit accumulated thanks to investments in audiovisual productions. Italian Ministerial Decree of 5 February 2015 published in the Official Gazette of 25 March 2015 Chap. I-II-IV.

Audiovisual tax credit for independent tv and web producers – foreign works: a 25% tax credit is granted to Italian executive production companies that produce films or part of films on commission from foreign production companies on Italian soil. The tax credit consists in the possibility of paying off the tax debts (Corporate tax, Income tax, Regional tax, VAT, social insurance and pension dues) with the credit accumulated thanks to investments in audiovisual productions.

Italy-France feature film co-development fund: funds for the development of projects co-produced by Italian and French producers mainly designed for movie house release. Deadlines for next applications still to be announced.

Italy-Germany feature film co-development fund: fund for the development of projects co-produced by Italian and German producers mainly designed for movie house release.

Italy-Canada documentary co-development incentive: funds for the developments of documentary projects co-produced by Italian and Canadian producers.

Regional funds:

· Alto Adige

· Apulia (Puglia)

· Basilicata

· Emilia Romagna

· Friuli Venezia Giulia

· Lazio

· Piedmont (Piemonte)

· Sardinia

· Sicily

· Trentino