Tax Shelter

This table shows, by calendar year: the number of framework agreements registered for audiovisual and stage works; the amount of investment; the number of checks and corrections carried out by the Tax Shelter unit of the General Tax Administration. A framework agreement is an agreement between an investor (that satisfies the conditions) and an approved production company in which the investor undertakes to invest a certain amount in an audiovisual work or a stage work. In return, the investor obtains a temporary tax exemption. The Tax Shelter cell then checks whether all the conditions are met and issues the Tax Shelter certificate. The provisional exemption is then transformed into a definitive exemption. The tax value of the Tax Shelter certificate determines the final exemption. Therefore, when the tax value is reduced, the definitive exemption is less significant and the investor has to pay additional tax. Example (coefficients applicable for the years concerned: 356% and 172%): Investment: €100 Provisional exemption: €356 (€100 x 356%) Theoretical tax value of the certificate corresponding to an investment of €100: €206.98 Theoretical definitive exemption: €356 (€206.98 x 172%) Tax value of the certificate after inspection: €180 Amount of the tax value rejected: €26.98 Definitive exemption after inspection: €309.60 (€180 x 172%) Tax supplement: The increase in the amount of the tax value rejected in 2021 is mainly due to: a file for which we refused all the certificates for fourteen projects (total amount of €24 601 465.66); three cases for which: we were unable to issue any certificates for two films which were not completed; we refused all the certificates for a film (total amount of 4.265.800,00 €). Legend: N/B = data not available.