Impact analysis of fiscal incentive schemes supporting film and audiovisual production in Europe

The European Audiovisual Observatory publishes a new analysis of the impact of fiscal incentive schemes – tax shelters, tax rebates and tax credits -  which aim at stimulating investment in the production of film and audiovisual works.

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Pages : 132
Place : Strasbourg
Authors : Jonathan Olsberg, Andrew Barnes, OLSBERG SPI
Date of publication : December 2014
Editor : European Audiovisual Observatory

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Impact analysis of fiscal incentive schemes supporting film
and audiovisual production in Europe

 

The European Audiovisual Observatory publishes a new analysis of the impact of fiscal incentive schemes – tax shelters, tax rebates and tax credits -  which aim at stimulating investment in the production of film and audiovisual works. The analysis identifies, describes and categorises the schemes in place across Europe and evaluates their impact in attracting foreign investment, both from within Europe and from other countries too. It then compares the various schemes according to their advantages/disadvantages and examines how they work alongside other economic and political measures. The report concludes by evaluating the impact of these systems in the international context.

 

Key questions addressed by this report

This report addresses the issues surrounding the impact of fiscal incentives currently operating in Europe, taking a comparative approach, analysing schemes from the individual perspectives of the national markets in which they operate, and evaluating their impact at a pan-European level. In doing this, the report considers:

  • The landscape for fiscal incentives targeting film, television, and video game production, including where they operate and what structures they use (Chapters 5 and 6);
  • What trends exist within the European fiscal incentive system (Chapter 7);
  • The impact, in particular the economic impact, of fiscal incentive schemes (Chapter 8), including questions such as
    • Have incentives influenced the production levels, employment prospects, and direct funding systems within their own countries?
    • What is the impact of fiscal incentive structures on neighbouring countries through production flows and movement of employment?
    • Have incentives altered the business model for European independent production companies?
    • What is the fiscal impact for the States offering such incentives?
  • How such incentives have been evaluated by the countries in which they operate, and how the conclusions of these evaluations compare with one another (Chapter 9);
  • Recommendations on future assessment of fiscal incentive schemes in Europe (Chapter 10).

As part of this analysis, SPI have looked in greater detail at eight selected schemes presently operating in Europe where the most substantial amount of comparative data is available; these schemes are more fully described in an Annex, chapters 11 to 18.

As well as the direct impact on the film and audiovisual industries, it is possible to look at the indirect impacts on output and employment – arising from the industries' supply chain – and the induced impacts – arising from those directly and indirectly employed in these industries using their earnings to buy other goods and services. The indirect and induced impacts can be described as the film industry multiplier – the ratio of the total economic impact of the film industry to the direct impact.

 

This analysis was carried out by one of Europe’s leading screen sector development consultancies, Olsberg•SPI, providing specialist, high level advice for over 20 years to public and private sector clients in the creative industries, focusing on film, television and digital media.

 


Content

 

1. Introduction

Executive Summary

2. Executive Summary

2.1       The European Fiscal Incentive Landscape

2.2       Trends

2.3       Key Findings of the Impact Evaluation

2.4       Limitations of a pan-European impact evaluation

2.5       Recommendations how to improve impact evaluation

Definitions and Methodology

3. Key definitions

4. Research Methodology

Fiscal Incentive Schemes in Europe

5. Types & Modalities of Fiscal Incentives

5.1       Types of fiscal incentives

5.2       How do fiscal incentives operate?

6. Fiscal Incentives Schemes in Europe

7. Current Trends in Shaping Fiscal Incentives

Impact Analysis           

8. Impact of European Fiscal Incentives

8.1       Impact on production levels

8.2       Impact on production flows between countries

8.3       Impact on employment

8.4       Impact on direct funding

8.5       Other impacts on local film sector

8.6       Fiscal impact

Recommendations on Measuring Impact

9. Overview of existing Evaluations of Schemes

10. Challenges & Recommendations

10.1      Challenges of measuring impact on a comparable basis          

10.2      Recommendations

Annex – Scheme Analysis by Country

11. Belgium

11.1      Background to the scheme

11.2      Economic impact of scheme

11.3      Impact on the sector

12. Croatia

12.1      Background to the scheme

12.2      Economic impact of scheme

12.3      Impact on the sector

13. Czech Republic

13.1      Background to the scheme

13.2      Economic impact of scheme

13.3      Impact on the sector

14. France

14.1      SOFICA

14.2      Crédit d’impôt cinéma

14.3      Crédit d’impôt audiovisuel

14.4      Crédit d’impôt jeux video

14.5      Crédit d’impôt international –  “C2i” or “TRIP”

14.6      Economic impact of schemes

14.7      Impact on the sector

15. Hungary

15.1      Background to the scheme

15.2      Economic impact of scheme

15.3      Impact on the sector

16. Ireland

16.1      Background to the scheme

16.2      Economic impact of scheme

16.3      Impact on the sector

17. Italy

17.1      Background to the scheme

17.2      Economic impact of scheme

17.3      Impact on the sector

18. United Kingdom

18.1      Background to the scheme

18.2      Economic impact of scheme

18.3      Impact on the sector

Appendices

Online Services

IRIS e-Newsletter

Legal Observations of the European Audiovisual Observatory

> Database IRIS Merlin 

Database on legal information relevant to the audiovisual sector in Europe

> AVMSDatabase

Database on the transposition of the AVMS Directive into national legislation

Database LUMIERE

Database on admissions to films released in Europe

> Database MAVISE

Database on TV and on-demand audiovisual services and companies in Europe