SECTION 481 OF THE TAXES CONSOLIDATION ACT1997 RELIEF FOR INVESTMENT IN FILMS

In November 1997, Section 35 of the Finance Act, 1987, as amended, was consolidated in the Taxes Consolidation Act, 1997 Income tax and corporation tax: relief applicable to both 481.

Section 481 of the Taxes Consolidation Act, 1997 provides a fiscal incentive to taxpayers to invest in film production. The scheme allows tax relief on investments in film projects certified under the Act because 100% of the amount invested can be written off for tax purposes, the investor looks for a return on the net cost rather than on the full amount invested.

The amounts that can be raised under Section 481 are as follows:

A maximum of 66% of the project's budget for budgets of €5,080,000 or less and a maximum of 55% of the project's budget for budgets of €6,350,000 or more, subject to an overall €10,480,000 ceiling of Section 481 investments.

There is a sliding scale adjustment of between 55% and 66% of the total budget for film budgets costing between €5,080,000 and €6,350,000.

The legislation also requires that a minimum of 75% of the work on the production of the film be carried out in the State.

The Section 481 investment scheme will operate until end 2004.

THIS INFORMATION SHOULD BE TREATED AS AN INFORMATION GUIDE TO TAX INCENTIVES AVAILABLE IN THE REPUBLIC OF IRELAND NOT AS A DEFINITIVE LEGAL DOCUMENT. ALTHOUGH EVERY EFFORT HAS BEEN MADE TO ENSURE THAT THE INFORMATION CONTAINED HERE IS CORRECT AND UP-TO-DATE, IFTN CANNOT BE HELD RESPONSIBLE FOR ANY ERRORS OR OMMISSIONS WHICH MAY CCCUR.