Belgium : Tax Shelter
The Tax Shelter is a tax measure provided by the Belgian Income Tax Code (Article 194ter and Article 416, second paragraph). It is the purpose of this measure to promote and facilitate local film productions by granting tax incentives to corporate taxpayers investing in the Belgian audio-visual industry.
As such, corporate investors will benefit from a special deduction from taxable income equal to 150% of the cash amounts actually invested in the production of Belgian audio-visual works. In order to secure this tax deduction, the amounts invested should not necessarily be at risk as they may, within certain limits ( i.e ., maximum 40% of the total investment), consist of loans the re-payment of which is guaranteed. However, the tax deduction claimed on the basis of the Tax Shelter cannot exceed either 50% of the taxpayer's taxable income, or an amount of 750.000,00 EUR per taxable period. In addition, a number of other conditions and formalities need to be observed.
In 2006, the Firm has invested in the production of “Goodbye Bafana”, a movie directed by Bille August and based on the memoirs of James Gregory, who was the prison guard of Nelson Mandela for more than 20 years.
More information concerning the Belgium Tax Shelter can be obtained from: firstname.lastname@example.org