Revenue Unveil New Film Tax Relief

Revenue have today announced guidelines for the new Corporation Tax relief scheme for film production.

This replaces the old, and highly successful, Income Tax relief that was previously available to individuals. The Minister for Finance announced the abolition of that particular relief in a recent Budget.

Corporation Tax relief for films

The aim of the new scheme is to direct the benefits of the tax relief towards the producer of a qualifying film rather than towards its investors.

The new scheme grants corporation tax relief at a rate of 32% of the lowest of:-

  1. eligible expenditure (as defined below)
  2. up to 80% of the cost of production
  3. €50,000,000.

A minimum production spend of €250,000 applies. At least half of that amount must be spent on eligible expenditure, which is defined as:

the employment of eligible individuals or on goods, services or facilities within the State on the production of a qualifying film.”

It is possible for applicants to receive up to 90% of the relief in advance of completion of the film.

The new scheme guidelines are online here.