Country Focus: Ireland
Ireland increases tax breaks to 32%
by Naman Ramachandran
- Beginning financial year 2015, a year earlier than previously announced, the Irish government has increased the percentage of tax breaks to 32. As of now 28% of eligible production spend can be had as a tax break. Bringing Ireland in line with the UK, the new measures will mean that Section 481 will apply to non-EU as well as EU talent working in Ireland.
James Hickey, Chief Executive of the Irish Film Board, said, “Building on the current success of the film, television and animation industry, this new measure will assist Irish producers in attracting foreign direct investment in the form of international feature films and television shows which will assist in creating new Irish jobs within the sector. The enhancement of the Irish tax incentive for the film and television industry demonstrates the commitment of the Irish government to the future of the Irish film, television and animation sectors and Ireland’s creative industries."
Irish Minister for Finance, Michael Noonan, said, “These productions are job-rich and can often give a knock-on boost to the tourism sector. This extension will be subject to EU state-aid approval, and it will be coupled with the introduction of a withholding tax.”
Production activity across the feature film, independent drama, television and animation industry in Ireland in 2012 was valued at over €180 million in terms of expenditure on local goods and services in Ireland, 30% up from 2011. Employment levels within the overall audio-visual industry, which has a turnover of more than €500 million, have also increased to over 6,500 full-time jobs.