For International Film Productions who wants to realize feature films and
audiovisual products (Television) on the beautiful Italian territory, Italy
introduced efficient and functional fiscal incentives.
Active for over a decade, the Tax Credit System has recently been
improved. The basic outline of the tax credit has the following rules.

 

1) The tax credit increased to 30%.
2) The tax credit must run through an Italian Production Service
Company (IPSC).
3) Projects must pass the cultural test as per Table A.
4) IPSC (including the group of companies) has a cap of €
20.000.000 per year for features and audiovisual combined.
5) Tax Credit is capped at 75% of the total budget.
6) IPSC can spend up to 10% in another EU country.
7) End Credits must report the use of Italy Tax Credit (line & logo
provided by MIBAC- DGC – Italian Ministry of Culture).
8) Preliminary Request:
a. Must be Submitted within 90 days prior to principal
photography. PSA shall be in place.
b. To include the Cultural Test (see attached Table A) with all
the element listed in the “preliminary application info-sheet”
of the same plus tax credit cash flow for the year requested
and the following three years (if needed) and the IPSC
declaration adherence to CCNL.
c. MIBAC-DGC will answer in 30 days.
9) Final Request:
a. Must be submitted within 180 days after completion of all ISPC
activities.
b. To include: overall final budget, final eligible costs and
audit, tax credit available and used, cash flow of tax
credit, ecc
c. Mandatory industry survey which reports on the
industrial, occupational, economical impact of the project
in Italy as well overall data about it.
d. Final answer from MIBAC-DGC within 60 days of submission

 

Other things to know:
1) Tax credit is now transferable but only to banking, insurance and
financial intermediaries subject to ‘prudential supervision’. MIBAC-
DGC must authorize the transfer.
2) Application can be submitted:
a. From February 1 st to May 15 th ;
b. From June 16 th to September 15 th ;
c. From October 15 th to December 30 th .
(in case the deadline falls on a holiday or pre-holiday, it is
moved to the next working day)
3) The IPSC must have a minimum share of 40.000 euro, subject to
taxation in Italy and classified as ATECO J 59.1 (Italian Fiscal Code).

 

Requirements for Cultural Eligibility: Foreign Feature Films,Television,Web