What is Section 481 Tax Relief?
Film tax relief ….
In Ireland Section 481 has been the lifeline in the Film and TV Industry. In October the Government extended this carrot by four years to December 2024. Also, additional short-term tax incentives are planned to be introduced for productions located in certain regions.
This tax relief is the blood-supply, a supply that the Irish film and television industry consider vital to functioning. It was due to expire at the end of 2020 so last months announcement was monumental. Popup Studios CEO, Andy Byrne, said that: “expected extension allows the State to promote Ireland” as a location for international film and television producers and content creators to compete with similar incentives in other countries.
Paschal Donohoe (Minister for Finance) said: “To ensure all areas of our country can benefit from the film industry, I am also introducing a new time-limited regional uplift of up to an additional 5 per cent that will taper out over five years”. Whereas the Minister for Culture, Heritage and the Gaeltacht (Josepha Madigan) described the Section 481 extension as “great news”.
Annie Doona from Screen Ireland commented: “2018 has been an incredibly successful year to date, with Ireland welcoming a large number of major international productions to our shores”. Annie added that “Consistent Government support for Section 481 is imperative to enable Screen Ireland to promote Ireland as an attractive international destination for film and TV production”. Likewise, Elaine Geraghty, CEO at Screen Producers said that it provided “clarity and certainty”; certainty for an industry that creates creative jobs is a Win for Ireland. CEO at Popup Studios, Inchicore, Dublin 8, said: “Investors like a degree of certainty, the 481 extension meets that expectation until 2024. This is a huge statement to the Global industry, meaning that Ireland is open for business.”
So what does Corporation tax credit Section 481 relief mean to the film industry?
Corporation tax credit Section 481 film relief enables production companies to claim credit against corporation tax. Should the relief exceed the tax due, the Revenue in Ireland will covers the difference, a valuable support for qualifying productions.
For more information refer to www.screenireland.ie.
John Gleeson from Grant Thornton discusses this in more detail here.