Did you know about the Tax Incentive in Ireland?
We also offer administrative services on Ireland’s section 481 Tax Incentive for Film and Television, digital and post-production. In addition to this, we also offer advisory services in this area.
What is section 481?
This is a tax credit, incentivizing film and TV, animation, VFX / Post and creative documentary production in Ireland.
Ireland's 32% - 35% Tax Credit for Film and TV.
1. There is a €70m per project cap.
2. There is no annual limit.
3. International cast and crew employed in Ireland qualify.
4. It is available on all goods and services sourced in Ireland.
How does it work?
It is worth up to 32% of eligible Irish expenditure and is available across all goods and services that are sourced in Ireland. It includes production, post-production and VFX. Additionally, there is a 3% uplift for projects that are being shot in the regions, which brings the value up to 35% in these circumstances.
*3% Regional Uplift explained:
Projects that are produced in the regions that are outside Dublin/Wicklow and Cork City and County can benefit from as much as 3% uplift that is subject to specific training related requirements. This 3% applies in 2022 and 2% in the year 2023.
What is the credit worth in the ‘Section 481’?
It is worth up to 32% of eligible Irish expenditure. Additionally, there is a 5% uplift for projects being shot in the regions, which brings the value of the tax credit up to 37% here.
What is the eligible expenditure criteria?
This is the payable tax credit that is based on the cost of all of the cast and crew employed that are working in Ireland. It also relates to the cost of all services sourced in Ireland. This includes post production and/or VFX.
1. Feature film
2. Television drama (singles or series)
3. Animation (excluding computer games)
4. Creative documentary
*any project that satisfies the culture test and the industry development test.
The ‘Producer Company’ must do the following to be eligible:
1. Be an Irish resident or trading through a branch or agency.
2. Be trading for at a minimum of a year as a production company and have filed a corporation tax return with Revenue.
3. It cannot be connected to a broadcaster.
4. It mustn’t be an ‘undertaking in difficulty’.
5. Have 100% shareholding in a ‘Qualifying Company’ which has to be an Irish resident and exist as a SPV (Special Purpose Vehicle) to make one film.
Is there a cap?
There is no annual cap/limit.
This tax credit is per project and is up to 32% of the lower of:
1. The full eligible expenditure
2. 80% of the production cost
3. €70 million
When is it paid?
Full amount on delivery of the project
In 2 installments being 90% of the tax credit due, upon:
What is the minimum spend?
Projects are excluded from the incentive if their ‘eligible expenditure’ is lower then €125,000 or the total cost of production is less than €250,000.
Where do you apply?
The company must make the application to the Minister for Culture, Heritage and the Gaeltacht for a certificate stating that the project is to be treated as a ‘qualifying film’ for the purpose of Section 481.
When must it be made by?
It must be made to the Minister at least 21 working days prior to when the production commences.
TAB F Skills Development Plan Explained:
All applications to the Department of Media, Tourism, Arts, Culture, Sport and the Galetacht for a Section 481 Certificate must include a TAB F Skills Development Plan. For all projects with eligible expenditure over €2 million, a copy of the TAB F Skills Development Plan must be submitted to Screen Ireland at a minimum of 21 working days prior to the commencement of the Irish production or on the same date as the application was made for the certificate under Section 481 Taxes Consolidation Act 1997 is submitted to the department.
The cultural test explained:
Everything that is put forward to qualify for Section 481 are analysed by the Department of Culture, Heritage and the Gaeltacht and must meet three of the cultural test criteria.
What is the Industry Development Test?
All projects are assessed by the Department of Culture and must satisfy the Industry Development test by providing quality employment and training opportunities.