Tax Quarry: 2006 International Film and Video Tax Incentives (Federal)

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2006 International Film and Video Tax Incentives (Federal)

Wednesday, February 15, 2006

Often local film producers are confronted with financial limitations that may force them to look to other jurisdictions that provide attractive financial incentives to offset the cost burdens of a particular production. Popular incentives are often tax driven. Below is a list of International Film and Video Tax Incentives that may be helpful in deciding which location would provide the best tax advantage for a foreign location production.

Jurisdiction	Description of Tax Incentive
Australia	12.5% refundable tax credit based on qualifying Australian production expenditures. 100% capital cost allowance deduction.
Canada	25% film or video production tax credit directed at Canadian owned productions and a 16% foreign location production tax credit.
Fiji	5% tax credit for expenses related to a locally funded production valued at a minimum F$250,000, which must be at least 35% of the budget.
France	20% tax credit based on production expenditures.
Germany	100% tax deduction based on investment.
Ireland	18% tax credit on Irish expenditures and a 80% capital cost allowance deduction.
Luxembourg	30% tax deduction
Netherlands	100% tax shelter deduction.
United Kingdom	20% tax credit accessed through sale-leaseback structure. 100% of a UK film’s budget worth approximately 20% of production costs.
United States	Tax-free write-off of expenses related to domestic productions valued under $15 million. 9% deduction for expenses related to domestic productions to a maximum of 50% of wage expenditures.