France 🇫🇷

France offers a robust incentive program to attract international film and television productions, known as the Tax Rebate for International Productions (TRIP). Below is a detailed overview:

1. French TRIP Tax Incentive

Tax Rebate:

The TRIP provides a rebate on qualifying expenditures incurred in France during production.

2. Detailed Breakdown of the Film Incentive

Rebate Percentage:

• 30% of eligible expenses.
• 40% if French Visual Effects (VFX) expenses exceed €2 million.

Eligible Productions:

• Fiction films (live-action or animation), including feature films, TV series, web series, virtual reality (VR) projects, short films, and TV specials.
• Documentaries, commercials, and reality TV shows are not eligible.

Minimum Expenditure Requirements:

• Spend at least €250,000 or 50% of the total production budget on qualifying French expenditures.
• For live-action projects, a minimum of 5 days of shooting in France is required.

Rebate Cap:

• Capped at €30 million per project, corresponding to €100 million in eligible expenditures.

3. TRIP Tax Incentive Terms and Conditions

Cultural Test: Projects must pass a cultural test specific to their genre (live-action or animation), assessing elements related to French or European culture, heritage, and territory.

Eligible Expenses:

• Salaries and wages paid to French or EU writers, actors (up to the minimum set in collective bargaining agreements), directors, and production staff, including related social contributions.
• Expenditures to specialized companies for technical goods and services.
• Transportation, travel, and catering expenses.
• Depreciation expenses.

VFX Bonus:

• Projects with French VFX expenses exceeding €2 million are eligible for a 40% rebate on all qualifying expenditures.

4. Governing Body for the Incentive

Centre National du Cinéma et de l’Image Animée (CNC):

The CNC administers the TRIP and is responsible for granting approvals and overseeing compliance.

5. Process/Outline for Applying or Becoming Eligible for the Incentive

1. Engage a French Production Services Company (PSC):

• Foreign producers must contract with a French PSC subject to corporate income tax in France.
• The PSC is responsible for supplying artistic and technical means, managing material operations, and ensuring proper execution of the project in France.

2. Application Submission:

• The PSC submits the application to the CNC, including project details, budget, cultural test, and other required documentation.
• Applications should be submitted before incurring eligible expenses.

3. Approval Process:

• The CNC evaluates the application, focusing on cultural eligibility and financial criteria.
• Upon approval, a provisional agreement is issued, allowing production to commence under the TRIP framework.

4. Production and Expenditure Tracking:

• During production, the PSC tracks all eligible expenses incurred in France.
• Detailed records and supporting documentation are maintained for audit purposes.

5. Rebate Claim:

• After the fiscal year ends, the PSC includes the tax rebate claim in its annual tax return.
• If the rebate exceeds the corporate income tax due, the difference is refunded by the French State.

For comprehensive guidelines and application forms, it is advisable to consult the official CNC website or contact them directly for assistance.