Since 2003, the tax incentive mechanism Tax Shelter has made its mark on the Belgian audiovisual sector (read the report) .
Its objective was to encourage films to be (co-)produced in Belgium. In short, a production company wishing to invest in supporting an audiovisual production is granted a deduction of their taxable income worth 150% of the amount invested, with the added bonus of also having taken part in an artistic project of great scope.
A study conducted by Deloitte and the Belgian studio uMedia, based on a review of over 90 films supported between 2003 and 2011, has just proven that the mechanism has been a great success in all areas. (…) For each €1 “lost” via tax deductions, the state makes €1.21 in economic returns. The Belgian state has made up to €77m in net gains. Since the Tax Shelter was launched, the number of jobs in the audiovisual sector has leaped by 23%. The sector’s gross margin has increased by 75%. Even more impressive, the number of films produced in Belgium during this period went up by 250%.
Cineuropa, 5 July 2012
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