Foreign productions that choose to shoot in our region, can benefit from the combined effect of regional funding handled by Apulia Film Commission (with a funding of 5 million euros yearly and a contribution of 1 million euros tops for production) and of tax credit, recognized by the Ministry of Cultural Heritage and activities (MIBACT).

The italian Tax Credit scheme: a general overview

If a foreign theatrical motion pictures and tv production qualifies, there’s up to 30% of the eligible production costs to be obtained.

To qualify, the eligible production costs must not exceed 75% of the overall production budget

Where the eligible production costs can be incurred:

– in Italy

– in other European countries (up to a maximum of 1/6 of the 75% of the overall production budget).

Eligible production costs can be incurred in Italy but also other European countries within the limitations described below in more detail.

They amount to production costs and include pre and post-production costs and excludes the producer fee and some financial costs.

The Italian production service company ( IPSC) incurs costs that accrue the tax credit during production

However, it’s not possible for foreign producers to apply directly for this Italian benefit.

The only way is to contract one or more Italian production service companies who are the only ones entitled to make the application because they’re subject to Italian taxes and meet the legal requirements. The Italian production service companies will take care of applying and obtaining the tax credit.

It’s important to highlight the fact that since the Italian tax credit accrues during production, that is while the production costs are incurred, the Italian production service company can pay all the picture-related Italian tax liabilities by using the credit and ends up saving on production costs.

The credit is usually applied against the picture-related tax liabilities in order to maximize and finetune the immediate benefit for the foreign production. However, the Italian production service company can offset the tax credit against any of its tax debts, whether they’re related to a specific production or not.

The tax credit ultimately gives foreign producers a cost reduction of up to 30% of the Italian expense through the services of the Italian production service company.

The Italian tax credit is one of the few systems worldwide to offer the advantage of allowing savings during production as opposed to reimbursement or retroactive tax rebate on the local production expense.

Puglia is one of the most cinema- friendly regions of Italy for financial resources, diversity of landscapes and for the quantity and quality of professionals available.

It’s here that Dinamo has always had its headquarters.

During these years we’ve achieved great expertise in managing both National and Regional grants, with a detailed accuracy in the application and the cost reporting process.

Video courtesy of Apulia Film Commission