Committee on Budgetary Oversight has published its report on Section 481 – Film Tax Credit

The Committee decided to examine three tax expenditures, Research and Development Tax Credit, the Knowledge Development Box and the Film Credit in advance of Budget 2023.

The Committee published a report on the Research and Development Tax Credit and the Knowledge Development Box  on 22 September 2022 and decided to hold further engagements on the Film Credit. The Committee held four meetings with a range of stakeholders from across the film and television sector. The Committee has used these meetings to learn where the Film Credit works and where improvements can be made to the overall system and make a number of recommendations.

Some of the recommendations made in the report include:

·       The Committee recommends that consideration be given to extending the 6-month time limit to submit a claim to the Workplace Relations Commission for cases involving the audio-visual sector due to the nature of their operation and structure.

·       The Committee recommends that under the industry development test, assurance must be given that Irish performers will not be subject to lesser terms and conditions regarding their intellectual property rights than international performers in similar roles when employed on the same project receiving Section 481 funding.

·       The Committee recommends that compliance with the Copyright and Related Rights Act 2000, as well as the EU Copyright Directive should be a specified requirement in order to avail of the Section 481 credit. In this regard the Committee wishes to highlight the importance of compliance with Articles 18 to 23 of the EU Copyright Directive.

·       The Committee recommends that the Department of Finance engage with the European Commission with a view to retaining the Regional Uplift at a higher rate of 5%, and to increase the 45-kilometre area limit to 75 kilometres or further.

·       The Committee recommends that consideration be given to removing or increasing the €70 million cap.

·       The Committee recommends that the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media and the Department of Finance convene a stakeholder forum as a priority to discuss how to maximise the benefits of the Section 481 credit for all concerned stakeholders, and to facilitate best practice in employment rights, industrial relations, collective bargaining, address Copyright and Intellectual Property issues and any other relevant issues.

Read the full Report