1. Brian Boyle Incentives & Financial Services Branch S.481 Film Relief Film Industry Briefing 25 November 2014

2. Overview From Income to Corporation Tax The legislative changes (up to FB 2014) Who is eligible? How much and when? What restrictions apply? The changeover process.

3. A Little History S.481 on the books since 1987 (S.35 FA 1987) Slow growth in numbers A Successful scheme but... Expensive Wasteful Inefficient 2012 a new scheme is born Direct Benefit to the Producer Company Payable Corporation Tax Credit (Similar to R&D) A win-win for Exchequer and Industry Consultative Process on Regulations

4. Who is Eligible? (s.481(1)) A Producer Company must:- Be Irish Resident or trading through a Branch or Agency Make Films for Cinema or Broadcast Not be a broadcaster Hold 100% shareholding in a qualifying company A Qualifying Company must:- Be Irish Resident or trading through a Branch or Agency Exist to make one film (note “distribution” in FB 2014) (Note: Any company that meets the criteria can apply. No Approved Lists of Producers or Agents!)

5. The fine print The Producer Company must be Tax Compliant (see also FB 2014) The Qualifying Company must be tax compliant The Film must satisfy Dept. of Arts Heritage & Gaeltacht Minimum budget of €250k and Minimum Eligible Spend of €125k(FB 2014) The project finances must satisfy the Revenue Commissioners The Producer Company and Qualifying company to remain in place for 12 months after compliance. Must spend the projected amount OR apply to amend certificate.

6. Legs and Regs S.481 Taxes Consolidation Act (TCA) 1997 as amended by:- S.21 FA 2013 – The new scheme Ss.24/25 FA (No.2) 2013 – Eligible Persons and Withholding Tax(more from Ken) S.23 FB 2014 – Technical Changes Timing of Applications Compliance by SPVs. S.89 FB 2014 - Disclosure Film Regulation 2015 – Currently with AG’s Office Communication from the Commission on State Aid for Films and other Audiovisual works

7. And most importantly… Relief at 32% of lowest of:- Eligible expenditure amount (spend in State); 80% of total cost of production; or €50m Paid as credit adjustment to Corporation Tax for year of return Payment of 100% on Compliance Report; or 90% on 1) Financial Closing; 2) IFB Certification; or 3) Film Credit guaranteed by Financial Institution, and 10% Balance on Compliance Report

8. Outstanding Issues The “Broadcaster Issue” The “21 month Issue” The “€50m Issue”

9. What’s new? And what isn’t…? NEW Corporation Tax Payable Credit Producer Company Concept Payment Timing Options Eligible Expenses broadened NOT SO NEW Tax driven support to film industry Types of qualifying production (including part production) Processes - Application, Certification, Compliance Report

10. Moving rapidly along… Smooth but Rapid Implementation of new Scheme Time limits for finance re-instated (60 Days) December 15 Cut-Off Date Other Options for Private Investors (FB Changes to EIIS) Additional Revenue support for support early applicants

11. Go raibh maith agaibh brian.boyle@revenue.ie