Synthesis
It is clear that tax incentives, regardless of which type, bring benefits and profits to the audiovisual sector in the countries studied. Indeed, the film industries of each country have experienced and continue to experience favourable growth. The success is real and quantifiable. The effects in terms of employment and recognition are noteworthy and noticeable for the audiovisual sector, as well as for the country itself.
At the beginning of 2005, the Netherlands repealed a law that allowed for a tax shelter in their country. Ireland experienced the same situation before 1987. In the two cases, the reasons given revealed abuse of tax incentives allocated.
One characteristic for Luxembourg and Ireland should be noted. In Luxembourg, the producer receives the tax incentive and, in practice, presents his certificate to financial bodies – those with profits greater than his own – in order to finance his production. In Ireland, however, companies are not ‘encouraged’ to finance productions as long as the rate of corporation tax remains low. Since the tax deductions they would receive are minimal, they therefore decide to invest elsewhere.
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