Irish film industry welcomes extension to tax scheme

The improvement to Ireland’s Section 481 tax incentive scheme announced in last week’s budget — extending it to apply to non-EU talent working in Ireland and moving forward the promised increase in its value to 2015 — has been broadly welcomed across the industry.

Acknowledging the growth in the industry, finance minister Michael Noonan described the sector as “job rich” with a “knock-on boost” to the tourism sector. Irish Film Board chief executive James Hickey said the new measures would bring Ireland into line with the UK and continue to attract foreign film investment in Ireland.

“The enhancement of the Irish tax incentive for the film and television industry demonstrates the commitment of the government to the future of the film, television and animation sector and Ireland’s creative industries.”

Earlier this year, the Government extended the Section 481 scheme to 2020 and increased its value to 32% as of 2016. The extension of Section 481 to non-EU talent will increase Ireland’s attractiveness as a filming location to Hollywood actors and film personnel.

This change will, however, necessitate the creation of a “withholding tax” — which is common in other countries and paid in the UK at a rate of 20% — that the individual can then use as a tax credit in their home country.

Also welcomed is the increase from 28% to 32% of eligible spend, and the fast-tracking of this change coming into effect by a year to 2015.

“By matching incentives that are currently available in the UK, the move should help attract mobile foreign film investment to Ireland and support local jobs,” said Torlach Denihan, director of the Audio Visual Federation.

Jimmy Deenihan, the arts minister, also highlighted his department’s continuing contribution to the Irish Film Board and Arts Council, within the limits of a reduced budget.

“Even with a reduced departmental budget, every week more than €2.3m will be invested in arts, culture and film next year.

“Well over half of this — €70m — will go to the Arts Council and the Film Board. This will help to maintain and support the important role the arts play in innovation and expression as well as job creation and economic recovery,” he said.