Tax Shelter
Tax Incentives for Audiovisual Investments
The Belgian Tax Shelter encourages the production of European audiovisual works by giving an incentive to companies that invest in them. The company investing in the production of European audiovisual works may benefit from a tax exemption on their profits corresponding to 150% of the funds invested (limit of 50% of the taxable reserved profit with a maximum of € 750,000 per accounting period).
A number of conditions have to be met. These conditions are linked to:
- The production company (must be a Belgian resident production company or a branch of a foreign company)
- The investor (must be a resident belgian company or a branch of a foreign company, excluding a production company or a television broadcasting company)
- The nature of investments (loans granted to the production company and the rights linked to the production and exploitation of the audiovisual work; the total of the qualifying sums invested may not exceed 50% of the global budget of the production)
- The audiovisual work itself (must be agreed by the Flemish, the French or the German communities as being a European work according to the European "Television without Frontiers" directive of October 3, 1989)
The production company must spend in Belgium at least 150% of the investments in rights for the production of the audiovisual work within a timeframe of 18 months.
The system is also applicable for international co-productions under some conditions.
