SEC 481 Tax Credit

Kerry’s 37% regional tax credit consists of 32% Irish tax credit + 5% regional uplift.

  • The tax credit is payable on the cost of all cast & crew working in Ireland and/or on all good & services sourced in Ireland, including post-production and VFX.
  • It applies to feature film, TV drama, animation & documentaries.
  • The extra 5% regional uplift applies to productions substantially produced in a regional area of Ireland
  • Projects must pass the Sec 481 Cultural Test & the Industry Development Test
  • €70 million per project cap
  • No annual limit
  • International cast and crew working in Ireland qualify

For more in-depth information see https://www.screenireland.ie/filming/section-481
 

Applying for Sec 481

Applications to the Department of Culture (for a qualifying film certification) and then to the Revenue (for payment), is made by the 'Producer Company'.

This application must be made to the Minister at least 21 working days prior to the commencement of Irish production. Where the Minister issues a certificate in relation to a qualifying film and all other provisions of Section 481 are complied with, a producer company may then make a claim for the film corporation tax credit.

The ‘Producer Company' must:

  • Be Irish resident or trading through a branch or agency
  • Be trading for at least 12 months as a production company and have filed a corporation tax return with Revenue
  • Not be connected to a broadcaster
  • Must not be an 'undertaking in difficulty' (this requirement originates from EU State Aid rules)
  • Hold 100% shareholding in a ‘Qualifying Company' which must be Irish resident and exsist as a Special Purpose Vehicle (SPV) to make one film

There is no annual cap or limit on the funding of the programme. The tax credit has a 'per project' cap of up to 32% of the lower of: 

  1. All eligible expenditure
  2. 80% of the total cost of production
  3. €70 million

Payment

Payment is made by Revenue.

Option A — Single Instalment:

On delivery of the project, submission of a qualifying film certification and submission of a compliance report to Revenue, payment of 100% of the tax credit will be paid by Revenue.

Option B — Two Instalments:

First instalment being 90% of the tax credit due, upon: 

  1. Financial Closing, including proof that 68% of eligible expenditure is lodged to the project's production account;
  2. Screen Ireland confirmation (Screen Ireland funded projects only); or
  3. Broadcasting Authority of Ireland (BAI) approval (BAI funded projects only); or
  4. An equivalent EEA state established body;
  5. Submission of a qualifying film certificate as issued by the Department of Culture; and

Second and final instalment being 10% balance on delivery of the project and submission of compliance report to Revenue.

Payment of the relief may be claimed against the producer company's corporation tax (CT) liabilities. In the event the relief due is greater than any tax due by the producer company, then a payment of the excess will be made by Revenue. The system is based on a self-assessment model in which Revenue will assess the project at the time that a claim for payment is made. 

Projects are excluded from the incentive if their ‘eligible expenditure' is less than €125,000, or the total cost of production is less than €250,000. 

Contact details and further information

For contact details and further information in the Department of Culture, Heritage and the Gaeltacht:
https://www.chg.gov.ie/arts/creative-arts/projects-and-programmes/film/

For contact details and further information in the Revenue Commissioners, visit https://www.revenue.ie/en/companies-and-charities/reliefs-and-exemption…

You must apply for film relief online through Revenue Online Service (ROS). You can make any enquiries through MyEnquiries or in writing to:

Incentives and Financial Services Branch
Corporate Business and International Division
Office of the Revenue Commissioners
Dublin Castle
Dublin 2.

Alternatively, you can e-mail to filmrelief@revenue.ie.

See the Guidance note for film producers and promoters for more details on how to apply. 
(link to Revenue document).

For more information please contact:

Film Unit,
Department of Culture, Heritage and the Gaeltacht,
New Road,
Killarney,
Co Kerry.

Tel: (+353 64) 6627214
Email: section481@chg.gov.ie