Could the fallout from Brexit influence film, television and motion picture production in the UK? To counter a potential downturn in filming-related revenues, the UK now offers tax credits to companies who choose the region as a shooting destination. But as it happens, Ireland offers an even more enticing tax incentive. In addition, Ireland’s attractive film tax credit program allows companies to avoid any potential, as-yet-unknown problems that might result from Brexit decisions.
Recently reported developments in the negotiation process indicate that Britain and the EU are rapidly approaching an insurmountable impasse, and the odds have increased that Britain may leave the EU by 2019 without a trade deal in place.
What does this mean for film producers looking for less risky, tax-friendly destinations in Europe? The answer can be summed up in two words: consider Ireland.
Ireland offers a 32% percent rebate for qualified expenses paid to local production companies (contact our office for more on what qualified expenses entail). And in some cases, companies may receive 90% of that rebate amount as an interim payment upon the closing of project financing. Co-producing a project with an Irish production company should help to fast-track the application process.
Films produced in Ireland that qualify for the rebate will need to gain the approval of the Department of Culture, and will need to involve scenes and themes that appropriately reflect Irish cultural sensibilities. These applications can be submitted to the Revenue Department at any time prior to the project’s completion.
Additional benefits and extra-low corporate income tax rates may apply to companies that establish their corporate headquarters in Ireland. Google, Amazon, Apple, Facebook, eBay/Paypal, Twitter, LinkedIn, Microsoft, Dell, Oracle, Cisco, Electronic Arts and Intuit, to name only a few, all maintain their European headquarters in Ireland, mainly to take advantage of Ireland’s attractive corporate income tax rate, simple tax regime, the quality and flexibility of both English-speaking and multi-lingual labor force and pro-business government policies and regulators.
Again, contact our office for more information about your specific plans and circumstances. We can help you break down the corporate incentives available and we’ll work together with your production team to map out the application and financing process.