This is the relief behind most film and television made in Ireland. Two things about it surprise people who have not used it: it is refundable, so a company with little or no corporation tax still gets paid, and the application does not start with Revenue.
Quick facts
- Rate
- 32%
- Who
- Producer companies only, since 2015
- Refundable?
- Yes — Revenue pays the excess over the tax due
- Expenditure cap
- €125 million for projects certified on or after 28 March 2024
- First step
- A cultural certificate from the Minister, before production starts
- Advance
- Up to 90% of the credit on budgeted expenditure
Who can claim
"Since 2015, Film Relief has been available only to producer companies in the film and film production industry."
And the feature that makes it worth so much: "A producer company can use film relief as a credit against Corporation Tax (CT) . If the relief is more than the tax due, Revenue will pay the difference."
That is a refundable credit. A production company with no profits and no corporation tax bill does not lose the relief — it receives cash.
How the 32% is calculated
"The amount of relief due depends on the production costs of the qualifying film. The credit is 32% of whichever is the lowest of:" "eligible expenditure", "80% of total qualifying film production costs", or the expenditure cap.
"This new maximum expenditure amount of €125 million applies to projects certified on or after 28 March 2024. The previous expenditure cap of €70 million continues to apply to projects certified before this date."
Note the word lowest. The 80% rule means the credit is effectively capped at 32% of 80% of your total qualifying costs, even where eligible expenditure would be higher.
The two stages — and Revenue is not the first one
"Following changes in the Finance Act 2018, Revenue is no longer involved in the application process. Under self-assessment there are two stages:"
Stage one, before you start. "The producer company must apply to the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media. This must be done in advance of commencing the film. This is confirmation that the film is a qualifying film for the purposes of the credit."
In advance of commencing the film. That is the single condition most likely to cost a production the entire credit.
Stage two. "A producer company can make a claim for the credit through the Revenue Online Service (ROS). The company must have a cultural certificate and meet the other requirements of the credit to claim it."
The 90% advance
"You can claim the credit in full after the film is completed. Alternatively, you can claim for up to 90% of the credit based on budgeted expenditure with the balance claimed on completion."
For a production that has to pay crew before any revenue arrives, that advance is often the difference between a film being financeable and not.
Common questions
How much is the Section 481 film tax credit?
32% of the lowest of eligible expenditure, 80% of total qualifying film production costs, or the expenditure cap — €125 million for projects certified on or after 28 March 2024, and €70 million for projects certified before that.
Who can claim Section 481?
Only producer companies in the film and film production industry. That has been the position since 2015.
What if my company has no corporation tax to pay?
You still benefit. The relief is a credit against corporation tax, and if the relief is more than the tax due, Revenue will pay the difference.
Do I apply to Revenue first?
No. Since the Finance Act 2018 Revenue is no longer involved in the application process. The producer company applies to the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, in advance of commencing the film, for a cultural certificate.
Can I get the money before the film is finished?
You can claim up to 90% of the credit based on budgeted expenditure, with the balance claimed on completion, rather than waiting to claim in full after the film is completed.