13 JUL 2020

ITALY: NEW TAX CREDIT FOR CINEMATOGRAPHIC AND AUDIOVISUAL INDUSTRY

Cinema tax credit will be recognized until 31 December 2020 and rates will be increased by 10 percentage points up to a maximum of 40% for films which have maintained at least two weeks of filming in the period 23th February – 30th November 2020.

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The Ministry of Cultural Heritage and Activities and Tourism of Italy, Dario Franceschini, and the Ministry of Economy and Finance, Roberto Gualtieri, have signed a tax credit upgrading by 2020.

The objective is to support and help the entire cinematographic and audiovisual national industry in order to allow a better restart relieving the effects of Covid-19 pandemic.

"To face the emergency that has hit the cinema and audiovisual sector hard, we have strengthened and strengthened the measures already provided for by the tax credit cinema to recognize this important instrument of tax relief for the whole of 2020 to productions severely limited by the consequences of the pandemic and a mechanism has been introduced to protect the risks associated with Covid-19," said the decree.

According to this measure, Cinema tax credit will be recognized until 31 December 2020 and rates will be increased by 10 percentage points up to a maximum of 40% for films which have maintained at least two weeks of filming in the period 23th February – 30th November 2020.

Derogating from actual provisions, the tax credit amount will be also recognized to unfinished production due to the impossibility to complete filming as effect of pandemic, covering up to 40% of cost incurred.

If not available on the market, it’s established the non-compulsory risk insurance for technic stop related to Covid-19.

The Ministry Dario Franceschini has reaffirmed the importance of this tax relief instrument for productions and the introduction of a mechanism to protect against Covid-19 risks and effects.