Film Stars From Outside EU Face ‘Withholding Tax’
25 October 2013
Posted by: Author: Ciarán Hancock
Author: Ciarán Hancock (The Irish Times)
Big name film stars not resident in Europe will have
to pay a 20 per cent withholding tax on the payments they receive from
companies claiming tax relief on movie productions made here from 2015
This is one of the measures detailed in the Finance Bill published yesterday.
This is regarded by tax practitioners as a quid pro quo for another amendment to the rules around tax relief on films.
It has amended the definition of an
"eligible individual” in the rules governing the granting of tax relief
for investments in qualifying films.
the residence requirements so that the amount spent on an eligible
individual qualifies for the relief regardless of where the individual
Previously, they had to be resident
in the EU. This has been welcomed by the film industry here, as it
mirrors similar rules in the UK and other European countries around tax
reliefs and boosts Ireland’s competitiveness in this area.
The withholding tax will apply to front-of-camera "artistes” resident outside the EU, Iceland, Liechtenstein and Norway.
One of the main features of the new rules is that electronic returns and payments are to be made by the qualifying company.
A deduction certificate is to be issued by the company when a payment is made and tax is deducted.
Assessments may be raised by the Revenue Commissioners where deemed "appropriate”.
tax deducted is not available for refund and allowable expenses
incurred by the performing artist will not be subject to the withholding
Commencement of these measures will be subject to ministerial order.
current scheme provides tax relief towards the cost of production of
certain films. The maximum amount which can be raised under the scheme
is up to 80 per cent of the cost of production for all budgets up to the
cap of €50 million.
This article first appeared in irishtimes.com.