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Finance Section for film. Information on finance and tax
incentives.
Section 35 of the Finance Act provides for investment in qualifying
films by companies and individuals.Since its introduction
in 1987.
Section 35 has been the most successful tax relief provision
in attracting individuals and companies to invest in Irish
films.
Many major international productions, have been produced under
this section. |
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Up to
66% of the total cost of a film with a budget of €5,080,000
or less;
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Up to
55% of the total cost of a film with a budget of between €6,350,000
and €19,050,000, with a sliding scale for films with
a budget between €5,080,000 and €6,350,000.
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Up to
€10,480,000 maximum for films with a budget over €19,050,000.
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Tax relief
on 80% of their investment is available to individual investors
and to corporate investors.
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Individual
investors can invest up to €31,750 under the scheme in
any year of assessment. An investor who cannot obtain relief
on all his/her investment in a year of assessment, either
because his/her investment exceeds the maximum of €31,750
or his/her income in that year is insufficient to absorb all
of it, can carry forward the unrelieved amount to following
years up to and including 2004 - 2005, subject to the normal
limit of €31,750 on the amount of investment that can
be relieved in any one year.
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following are essential prerequisites for any Section 35 investment:
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The film
must be produced solely or principally for film or television
broadcast, on a commercial basis with a view to realising
a profit.
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A qualifying
film must be certified as such by the Minister for Arts, Culture
and the Gaeltacht, taking into account a range of economic
and cultural considerations.
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Tax relief
is available from the date of commencement of principle photography.
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An investment
cannot be made in a film company before the Minister for Arts,
Culture and the Gaeltacht has indicated to a company that
a satisfactory application for certification has been received.
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Not less
than 70% of the work on the production of the film must be
carried out in the state (exemptions to this requirement can
be given by the Minister, provided not less than 10% of the
work is carried out in the state) Where an exemption is given,
Section 35 relief can be raised up to the percentage of the
work carried out in the State.
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The production
company must be resident in Ireland and be established solely
for the purposes of production (and also, if applicable, distribution)
of a qualifying film.
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A corporate
investor and any connected companies can invest up to €10,160,000
in any 12 month period. The total amount which can be invested
in any one film cannot exceed €3,810,000.
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Investment
may be made by an individual company or a corporate group.
Where the total investment exceeds €3,810,000, the excess
can only be invested in productions with a budget of €5,080,000
or less.
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Further information is available from:
Minister for Arts, Culture and
the Gaeltacht,
Dún Aimhirgin, 43 - 49 Mespil rd.
Dublin 4.
Phone: +353 1 6670788.
http://www.irlgov.ie
Office of the Revenue Commissioners,
Direct Taxes International and administrative division,
Dublin Castle,
Dublin 2.
Phone: +353 1 6799287
http://www.revenue.ie/publications/leaflets/it_57.htm
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