Dublin, one of the oldest cities in Europe, has retained its historical and cultural charm over the years and at the same time, it offers trendy bars, elegant restaurants and stylish cosmopolitan shops and hotels. On the doorstep of Dublin city are tranquil hamlets in a rolling country landscape, picturesque seaside villages surrounded by sandy beaches and a rugged coastline.
Vibrant urban towns of ancient heritage offer excellent and friendly locations. Originally founded as a Viking settlement, Dublin evolved into the Kingdom of Dublin and became Ireland’s primary city. Dublin is situated at the mouth of the River Liffey and is bordered by a low mountain range to the south and surrounded by flat farmland to the north and west. A north-south division has traditionally existed, with the River Liffey as the divider. Dublin’s economic divide is east-west as well as north-south.
Dublin, like much of north-west Europe, experiences a maritime climate with mild winters, cool summers and a lack of temperature extremes. The average maximum January temperature is 8.3°C, while the average maximum July temperature is 19.6°C. On average, the sunniest months are May and June, while the wettest month is December, with an average 73 mm of rain, and the driest month is July with standard 43 mm of rain. Rainfall is evenly distributed throughout the year.
From January 1, 2015, Ireland’s tax incentive Section 481 for film and television has been enhanced, creating a new payable tax credit programme. The Irish government’s move has dramatically improved Ireland’s competitive position as a location for international film production. The main benefits of Section 481 are:
Increased rate of relief
The rate of tax relief has been significantly increased and is now worth up to 32 per cent of eligible Irish expenditure.
Expansion of eligible expenditure criteria
The payable tax credit is now based on the cost of all cast and crew working in Ireland, regardless of nationality.
Greater flexibility in the application process
An application for a certificate entitling the applicant to the tax credit can be submitted at any time prior to the completion of the project.
There is no annual cap or limit on the funding of the programme, meaning there is no limit to the value of the cumulative payable tax credits made by revenue
The tax credit has a per project cap of up to 32 per cent of the lower of:
80 per cent of the total cost of production €50 million
When is the rebate paid?
Option A – Single Instalment
On completion of the project and submission of a compliance report to revenue, payment of 100 per cent of the tax credit may be paid by the revenue within 30 days.
Option B – Two Instalments
First instalment being 90 per cent of the tax credit due, upon:
Financial Closing, including proof that 68 per cent of eligible expenditure is lodged to the project production account;
Irish Film Board certification (IFB funded projects only); or
Tax credit guaranteed by financial institution, and
Second and final instalment is 10 per cent balance on submission of compliance report to revenue.
Ireland enjoys an EU-approved Corporation Tax rate of 12.5 per cent, the lowest in Europe. This applies to all corporate trading profits. This rate has been a focus of Ireland’s strategy to attract inward investment, creating a favourable economic and fiscal environment which supports industry. This has been the cornerstone of government policy in attracting inward investment into Ireland across the industrial sectors.
Tax Exemptions For Individuals
Individuals may locate in Ireland and enjoy tax-free income from their works under the ‘artist’s exemption’ scheme. It can apply to writers, including scriptwriters, visual artists and composers.
Research And Development Tax Credit
In 2004, the Irish Government introduced a research and development tax credit, aimed primarily at research undertaken to acquire new scientific and technical knowledge. It is also aimed at achieving technological advancement directed at new or improving existing materials, products, devices, and systems. In order to qualify it is necessary to achieve scientific or technical advancement and involve the resolution of scientific or technological uncertainty. As the film industry converges with technology, this may be used by companies advancing research and development in technology.
Zero Rated – Value Added Tax
VAT (Sales Tax) is applicable on the supply of goods and services within the EU. Film production may avail of zero rating under Section 13A of the VAT Act when the master negative is being exported.