The Tax rebate for international Production
Last December 2008, the French Parliament enacted a law creating an incentive for attracting the shooting of foreign productions to France.
The rebate, which is worth 20% of all eligible costs, is capped at 4 million euros. Eligible costs include author’s rights, the salaries of actors and of the crew, technical costs (rentals and purchases), including locations fees, transportation, food, and all fringes.
What are the eligible works?
Theatrical movies, Tv movies and series will have to pass a test designed to check their links with “French culture”. The European commission approved it in July 2nd 2009.
It assesses the content, creative contributors, and technical infrastructure of the movie. A specific test has been designed for animated features.
The other main conditions set out by the law are at least:
. To shoot 5 days in France (except for animation works)
. To spend one million euros in France on eligible costs.
How will it work?
Once the foreign producer has signed a deal with his French line producer, he will be able to submit an application to the CNC. The contract between the French line producing company and the foreign producer will need to be included. He will get a return receipt. None of the expenditures incurred before the reception date of the application form will be eligible.
In 2009, only, movies that already in production before the procedure is official, and that happen to be eligible to the tax rebate, will be able to get the rebate for all expenses made since January 1st 2009.
Once the application is made, a CNC committee, with the assistance of Film France, will determine the eligibility of the proposed foreign production. If approved, the CNC will issue an official letter of agreement. It will be delivered on a provisional basis and will have to be confirmed once all the activities taking place in France have been completed. If confirmed, the French line producer will receive an official letter of agreement.
Upon presentation of the agreement, the French line producer will be awarded the rebate by the French Tax Administration, as a credit against its corporate tax, at the end of the fiscal year (s) of the shooting.
Producing company
Any company incorporated in France could be the line producing company applying for the rebate. It may be a foreign producing company’s subsidiary, even in case it was especially created for this purpose.
What is the procedure?
The disposal is expected to come into effect soon; you can contact for any information:
CNC: Directorate of multimedia et technical industries - Phone + 33 (0) 1 44 34 37 70
Film France: Phone + 33(0) 1 53 83 98 98 rebate@filmfrance.net
