The expenses entering into the basis for calculating the cinema tax credit are made up of 6 categories:
The remuneration, and the related social charges, of the authors mentioned in article L 113-7 of the Intellectual Property Code, Remuneration paid to performers mentioned in article 212-4 of the Intellectual Property Code and remuneration paid to additional artists (extras) (1), The remuneration, and the related social charges, of the staff of the direction and the production (director, technicians, workers), expenditure linked to the use of technical industries and other providers of cinematographic and audiovisual creation. The use of the Tax calculator is there and you can make use of the same there. Best calculations are there.
Transport, catering and accommodation expenses incurred by the production of the work on the territory:
- Expenditure on the acquisition of rights to use archive images, only for audiovisual works of fiction, documentary or animation.
- This remuneration is capped at the minimum remuneration provided for by collective agreements and agreements concluded between the organizations of employees and employers in the profession.
Accommodation expenses are capped at:
- 200 € per night in the other departments.
- Non-refundable public subsidies directly allocated to the expenses listed above are deducted from the basis for calculating the cinema tax credit.
Approval to be entitled to the cinema tax credit
A film can only benefit from the cinema tax credit when the producer receives approval from the president of the CNC (National Center for Cinema and Animated Image), after consulting a committee of experts. Two approvals are actually planned:
- A provisional approval,
- A definitive approval, which can be obtained once the cinematographic or audiovisual work, is completed
Calculation of the cinema tax credit
The cinema tax credit rate applicable to eligible expenses is in principle 20%.
However, since 1 set January 2016, this rate is increased:
- To 25% for audiovisual works, fiction and animation.
- And 30% for animated cinematographic works and for non-animated cinematographic works produced wholly or mainly in French or in a regional language in use.
- These increased rates must however still be confirmed by decree, the European Commission still having to judge whether these increased rates comply with European law.
The capping of the cinema tax credit
For a single film, the amount of total tax credits earned is capped at 30 million euros from the 1 set January 2016 (against € 4 million previously).
Formalities related to the cinema tax credit
In addition to the formalities related to obtaining approval, the company must file a specific declaration for the cinema tax credit as an appendix to its corporate tax balance statement:
For cinematographic works of fiction or documentaries or animation: a declaration n ° 2069-CI-1.