Italy 🇮🇹

Italy offers a robust tax credit system to attract international film and television productions. Below is a detailed breakdown of the incentives:

1. Italy Filming Incentives - Tax Credit Program

Tax Credit:

Italy provides a tax credit of up to 40% on eligible production expenses incurred within the country.

2. How Italy's Tax Credit Works

Tax Credit Rate:

• 40% of eligible production costs.

Eligible Expenses:

• Costs incurred by the Italian production service company, excluding producer fees and certain financial costs.
• Expenses in other EU countries are eligible up to one-sixth of 75% of the total film budget.

Caps and Limits:

• The tax credit can be applied to up to 75% of the total production cost.
• Maximum annual tax credit per project is €20 million.

3. Filming Incentives Terms and Conditions

Cultural Eligibility:

• The project must pass a cultural eligibility test, scoring a minimum of 50 out of 100 points, with at least 35 points in content-related criteria.

Application Process:

• A preliminary application must be submitted within 90 days prior to the commencement of activities in Italy.
• A final application must be submitted within 180 days after the completion of activities in Italy.

Local Production Company:

• The foreign production company must appoint an Italian production service company to apply for the tax credit.

4. Governing Body for Italy's Film Tax Credit

Ministry of Culture (MiC):

• The Directorate General for Cinema and Audiovisual within the MiC oversees the administration of the tax credit program.

5. Filming Incentive Application Process

1. Engage an Italian Production Service Company:

• The foreign producer must collaborate with an Italian production company that meets specific legal requirements.

2. Preliminary Application:

• The Italian production company submits a preliminary application to the Ministry of Culture, including the cultural eligibility test.
• The Ministry responds within 30 days.

3. Production Phase:

• Upon approval, production can commence, with the tax credit being utilized to offset tax debts on a monthly basis.

4. Final Application:

• Within 180 days after completing production activities, the Italian production company submits a final application, including a detailed cost report certified by an independent chartered accountant.

5. Tax Credit Utilization:

• The tax credit can be used to offset various tax liabilities, including:
  • VAT,
  • Corporate income tax,
  • Regional income tax,
  • Social contributions,
  • Taxes withheld on labor costs.

For detailed guidelines and application forms, it is advisable to consult the official Ministry of Culture website or contact them directly for assistance.