Financing your Film / Tax Incentives /
Other Fiscal Incentives
Ireland enjoys an EU approved Corporation Tax rate of 12.5% which is the lowest in Europe. This applies to all corporate trading profits. This rate has been a focus of Ireland strategy to attract inward investment creating a favourable economic and fiscal environment which supports industry.
This has been the cornerstone of Government policy in attracting inward investment into Ireland across the industrial sectors. Companies in Ireland trading in this space which have cross over activities to the screen industries are: e-Bay / Google / Yahoo / Universal Vivendi / Alliance Atlantis / Beyond Films. This low tax rate may be of particular attention to US/ European sales agents.
Tax Exemptions For Individuals
Individuals may locate in Ireland and enjoy tax-free income from their works under the ‘artist's exemption' scheme. It can apply to writers, including scriptwriters, visual artists and composers. Where individuals become resident in Ireland they are entitled, on making a claim, to have their earnings arising from the publication, production or sale of books, screenplays, plays and musical compositions, disregarded for tax purposes where the work or works involved are original and creative and have cultural or artistic merit.
Research & Development Tax Credit
In 2004, the Irish Government introduced a research and development tax credit. It is aimed primarily at research undertaken to acquire new scientific and technical knowledge. It is also aimed at achieving technological advancement directed at new or improving existing materials, products, devices, and systems. In order to qualify it is necessary to achieve scientific or technical advancement and involve the resolution of scientific or technological uncertainty. As the film industry converges with technology, this may be used by companies advancing research and development in technology.
Zero Rated - Value Added Tax
VAT (Sales Tax) is applicable on the supply of goods and services within the EU. Film production may avail of zero rating under Section 13A of the VAT Act when the master negative is being exported.