Act Amending Article 194Ter Of The 1992 Income Tax Code Relating To The System Of Tax Shelter For Audiovisual Production (1)

Original Language Title: Loi modifiant l'article 194ter du Code des impôts sur les revenus 1992 relatif au régime de tax shelter pour la production audiovisuelle (1)

Read the untranslated law here: http://www.ejustice.just.fgov.be/cgi/article_body.pl?numac=2014003237&caller=list&article_lang=F&row_id=700&numero=733&pub_date=2014-05-27&dt=LOI&language=fr&fr=f&choix1=ET&choix2=ET&fromtab=+moftxt&trier=publication&sql=dt+=+'LOI'&tri=pd+AS+RANK+

Posted the: 2014-05-27 Numac: 2014003237 SERVICE PUBLIC FÉDÉRAL FINANCES may 12, 2014. -Law amending article 194ter of the 1992 income tax Code relating to the system of tax shelter for audiovisual production (1) PHILIPPE, King of the Belgians, to all, present and to come, hi.
The Chambers have adopted and we endorse the following: Article 1. This Act regulates a matter referred to in article 78 of the Constitution.
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2. the title of section IV of part I, title III, chapter II, Section III, of the Code of the 1992 income tax, inserted by the law of 2 August 2002, replaced by the Act of 22 December 2003 and amended by the laws of the May 17, 2004, December 3, 2006, December 21, 2009 and June 17, 2013, is replaced as follows : "Sub-section IV. -Companies that invest in a framework convention on the regime of tax shelter for audiovisual production".
S. 3. in article 194ter, § 1, of the same Code, inserted by the law of 2 August 2002, replaced by the Act of 22 December 2003 and amended by the laws of the May 17, 2004, December 3, 2006, December 21, 2009 and June 17, 2013, the following changes are made: has) in paragraph 1, before the 1 °, which becomes 2 °, inserted a 1 ° as follows : "1st investor eligible:-the company resident;" or - the Belgian establishment of a taxpayer referred to in article 227 (2);
other:-as an eligible production as referred to in the 2nd company. or - a corporation related to it in accordance with article 11 of the Code of corporations; or - a television broadcasting undertaking, who signs a framework agreement as referred to in the 5th in which he undertakes to pay money to receive a certificate tax shelter referred to 10 °; ";
(b) in paragraph 1, 1 °, which becomes 2 °, the words "the Belgian companies or foreign television broadcasting" are replaced by the words "Belgian or foreign broadcasting companies" and the paragraph 1, 1 °, which becomes 2 °, is supplemented by the words "and which has been approved as such by the Minister having finance in his/her attributions following a simplified including the terms and conditions are determined by the King;";
(c) in paragraph 1, there shall be inserted between the current 1st which becomes 2 ° and 3 ° current which becomes 4 °, 3 °, worded as follows: "3rd intermediate eligible: physical or legal person involved in the negotiations and the conclusion of a framework agreement in the context of the issuance of a certificate tax shelter through compensation or benefit" , which is not itself an eligible production Corporation or an eligible investor, and who has been approved as such by the Minister having finance in his/her attributions, following a simplified procedure where the terms and conditions are determined by the King; ";
(d) in paragraph 1, 2 °, which becomes the 5th, is replaced as follows: "5 ° framework convention: the notified agreement, within one month of its signature, to the Service federal public finance by the eligible production Corporation, or through eligible, by which an eligible investor undertakes, with respect to an eligible production company, to pay an amount to obtain a tax shelter of an eligible work;";
(e) in paragraph 1, 3 °, 4 °, become the following changes are made: 1) in the first indent, "a Belgian audiovisual work" shall be replaced by the words "a European audiovisual work", "a short film with the exception of short advertising films", is inserted between the words "intended for a theatrical", and the words "a telefilm of long fiction", and "a television collection" shall be replaced by the words "if any episodes ", a television series of fiction or";
(2) the first indent is hereby amended as follows: "the international a theatrical productions in the feature film, documentary or animation category are eligible to condition:-either falling into the scope of the Directive 2010/13/EU of the European Parliament and of the Council of 10 March 2010 on the coordination of certain laws, regulations and administrative action in the Member States concerning the provision of audiovisual media ("Audiovisual media Services"directive) services;"
-either to fall within the scope of a bilateral agreement on co-production concluded by Belgium with another State. By State, and this is true also for the Belgium, covered both the federal level and all administrative subdivisions; ";
(3) the second indent shall be replaced as follows: "-for which the tax of the tax shelter which is issued for certificate concerned production is set to maximum ten ninth spending production and exploitation, carried out in Belgium referred to the 7 ° within a maximum period of 18 months from the date of signature of the framework convention for the obtaining of the certificate tax shelter for the production of this work referred to 5 °." For animated films, this 18-month time limit is extended by six months; ";
(f) in paragraph 1, it is inserted between 2 ° current which becomes 5 ° and 4 current which becomes 7 °, 6 °, worded as follows: "6 ° production and operation skills, expenditure in the European economic area: production-related expenses that are made in the European economic area in connection with the production and operation of an eligible work;";
(g) in paragraph 1, 4 °, which becomes the 7th, the words "plan ordinary taxation,"shall be inserted between the words "the non-resident tax" and the words", excluding the costs referred to in article 57" and the words "expenses or benefits referred to in article 53, 24 °, 'shall be inserted between the words"of the costs referred to in article 53, 9 ° and 10 ° , "and the words"as well as any other expenses";"
(h) in paragraph (6) which becomes 8 ° of paragraph 1, the introductory phrase is replaced as follows: "8 ° expenditure directly related to the production: expenses that are related to the production of creative and technical of the eligible work, such as:";
(i) paragraph 2 is repealed;
(j) in paragraph 7 which becomes 9 ° of paragraph 1, the following changes are made: 1) the introductory phrase is replaced by the following: "9 ° expenditure not directly related to production: including the following expenses:-expenditure relating to administrative and financial organization and the assistance of audiovisual production;";
(2) in the second indent, the words "enterprises investing in a framework agreement for the production of an audiovisual work"; are replaced by the words "companies concluding a framework agreement for the production of an audiovisual work;";
(3) in the third indent, the words ", excluding interest actually paid on the loan amounts, but" shall be replaced by the words "or payments based on a framework agreement as referred to in the 5th,";
(4) in the fifth indent, the words "audiovisual facilities companies invoices" are replaced by the words "bills from audiovisual technical services enterprises";
(k) paragraph 1 is supplemented by a 10 ° as follows: "10 ° certificate tax shelter: a tax certificate, or a share of this tax certificate, issued by the federal public Service Finance, exclusively on demand of the eligible production Corporation at this company under the terms and conditions as laid down in § 7 and complemented by the King, on basis of the framework convention as referred to 5 ° and expenses made for the realization of production and" the operation of such eligible work as defined in the 4th. The transfer of the tax shelter certificate is notified within one month of its performance at the Service federal public finance, as well as to the eligible investor, or all the eligible investors when the certificate is issued by parts, by or through the eligible eligible production Corporation. The tax shelter certificate is retained by the eligible investor. A copy of the tax shelter is preserved at the seat of the production company. ";
(l) in paragraph 3 which becomes paragraph 2, the words "1st paragraph, 4th" are replaced by the words "article 1, 7 °";
(m) in paragraph 4 which becomes paragraph 3, the words "set out in paragraph 3" are replaced by the words "referred to in paragraph 2";
(n) in clause 5 which becomes paragraph 4, the words "the expenditure referred to in paragraph 1, 4 °" are replaced by the words "expenditure referred to in paragraph 1, 7 ° 'and paragraph is supplemented by the words', as referred to in paragraph 1, 8 °";
(o) paragraph 7 is repealed;
(p) paragraph 9 is repealed.
S. 4. article 194ter, § 2, of the same Code, inserted by the law of 2 August 2002, replaced by the laws of 22 December 2003 and 17 May 2004, as amended by the law of December 21, 2009, is replaced as follows: "§ § 2 2" In the head of the eligible investor, the taxable profit is exempt on an interim basis for the taxable period during which the framework convention is signed, in the limits and according to the conditions below, to a maximum of 310 p.c. of the amount that the investor has committed to pay pursuant to a framework agreement signed during the period provided that they are actually paid by such investor within three months of the signature of this framework convention. "."
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5. in article 194ter, § 3, of the same Code, inserted by the law of 2 August 2002, replaced by the Act of 22 December 2003 and amended by the law of 17 May 2004 and December 21, 2009, paragraph (3) is repealed.
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6. in article 194ter, § 4, of the same Code, inserted by the law of 2 August 2002, replaced by the Act of 22 December 2003 and amended by the laws of the May 17, 2004, December 21, 2009 and June 17, 2013, the following changes are made: a) the introductory sentence of paragraph 1 is replaced by the following: "§ 4. The relief is granted on basis of sums paid under a framework agreement towards the tax shelter certificate is granted and maintained only if: ";
(b) in paragraph 1, 1 °, the words "referred to in § 2" shall be inserted between the words "exempt earnings" and the words "are and remain" and the words "the last of the certificates referred to in 7 ° and 7 ° bis is sent;" shall be replaced by the words "tax shelter attestation is issued by the eligible production Corporation, or through eligible, to the eligible investor;";
(c) in paragraph 1, 2 °, the words "referred to in paragraph 2" shall be inserted between the words "exempt earnings" and the words "do not serve" and the words "the last of the certificates referred to in 7 ° and 7 ° bis is sent;" shall be replaced by the words "tax shelter attestation is issued by the company to eligible production, or through eligible, to the eligible investor;";
(d) in paragraph 1, 3 ° and 5 ° to 9 ° are repealed;
(e) in the paragraph 1, 4 °, which becomes 3 °, the words 'resident companies or Belgian taxpayers referred to in article 227 (2) institutions that have entered into this agreement' shall be replaced by the words "eligible investors";
(f) paragraph 1 is supplemented by a 4 ° as follows: "4 ° exempt profit referred to in § 2 are limited to 150 per cent of the tax value of the tax shelter certificate final estimation as contained in the framework convention.";
(g) paragraphs 2 to 4 are repealed.
S. 7. article 194ter, § 4, of the Code, inserted by the law of May 17, 2004 and amended by the Act of December 21, 2009 is repealed.
S. 8. in article 194ter of the same Code, inserted by the law of 2 August 2002, replaced by the Act of 22 December 2003 and amended by the laws of the May 17, 2004, December 3, 2006, December 21, 2009 and June 17, 2013, §§ 5 and 6 are replaced by two paragraphs worded as follows: "§ § 5 5" The exemption becomes final only if the tax shelter certificate referred to the § 1, paragraph 1, 10 °, is issued effective no later than December 31 of the fourth year following the signature of the framework convention.
The claimed exemption is the Chief amounts that have been paid really based on the framework convention within the period specified in § 2, or of the head of the tax of the certificate value tax shelter, to the report referred to in § 3, paragraph 2, may be granted at the latest for the tax year that is related to the third taxable period following the year calendar during which the tax shelter certificate was issued to the eligible production Corporation.
The final exemption that is granted on basis of sums paid under a framework agreement towards the tax shelter certificate is granted only if the investor attached to the declaration of the income tax for the taxable period during which he claims the final exemption a copy of the tax shelter he received in accordance with the § 1, 1st paragraph , 10 °, and to the extent of compliance by taxable period, limit and ceiling referred to in § 3.
§
6. For the period elapsed between the date of the first payment on basis of a framework convention and the time where the tax shelter certificate is issued by the eligible production the eligible investor company, but with a maximum of 18 months, the eligible production Corporation may grant to the eligible investor an amount calculated on basis of payments actually made within the convention framework for obtaining of the certificate of tax shelter Pro rata of accrued days and on basis of a rate not exceeding the average EURIBOR 12 months of the last day of each month of the calendar half-year preceding payment, plus 450 basis points. "."
S. 9. article 194ter of the same Code, inserted by the law of 2 August 2002, replaced by the Act of 22 December 2003 and amended by the laws of the May 17, 2004, December 3, 2006, December 21, 2009 and June 17, 2013, is complemented by six paragraphs, worded as follows: "§ § 7 7" The tax shelter certificate is issued by the Service federal public finance and forwarded to the production company eligible only if, under the terms and conditions listed below and the terms provided by the King: 1 ° the eligible production, or eligible intermediary, company has notified the framework convention to the Service federal public finance in accordance with the § 1, paragraph 1, 4 °;
2 ° the eligible production company requested certification tax shelter on basis of the notified framework convention and expenditures for the realization of the production and operation of an eligible work such as defined in the § 1, paragraph 1, 6 ° and 7 °;
3 ° the eligible production, or the eligible intermediary company handed over to Service federal public finance with the application for certification tax shelter:-a document in which the concerned community certifies that the work meets the definition of an eligible work referred in the § 1, paragraph 1, 4 °;
-a document by which the concerned community certifies that the creation of this work has been completed and that the overall financing of the work carried out pursuant to this article meets the condition and the ceiling referred to in § 4, 3 °;
4 ° at least 70 per cent of the expenditure referred to the § 1, paragraph 1, 6 °, are expenses directly related to the production within the meaning of § 1, paragraph 1, 8 °;
5 ° the eligible production Corporation had no arrears to the national social security Office at the time of the conclusion of the framework convention;
6 ° the conditions referred to in § 4, 1 ° to 3 °, are met continuously;
7 ° all the conditions of quality, limit, ceiling, time limit and territoriality referred to in this article have been met.
In the event where it is found that one or other of these conditions cease to be observed or fails during a taxable period, previously exempt profit are considered as profits obtained during this tax period.
In the event where the eligible investor has not received the certificate tax shelter at 31 December of the fourth year following that of the signing of the framework convention, exempt earnings is provisionally considered as earnings of the last taxable period during which the tax shelter certificate could be issued validly.
The final exemption is, in all cases, limited to 150 per cent of the tax value of the tax shelter certificate. The possible surplus amounts that have been paid and which have been included as benefits exempt provisionally in accordance with §§ 2 and 3 is considered to be a benefit of the taxable period in which the tax shelter certificate is issued.
By way of derogation to article 416, in the cases referred to in the three paragraphs that precede, late interest are due on the tax thus due from 30 June of the year following the taxation year for which the exemption has been requested for the first time.
§ 8. The tax value of the tax shelter referred certificate to the § 1, paragraph 1, 10 °, is determined in accordance with the rules laid down by the King, to:-70 per cent of the cost of production and operation skills in the European economic area, such as referred to the § 1, paragraph 1, 6 ° which are carried out for the production of the work referred to the § 1, 1st paragraph , 5 °, and which are expenses directly related to the production within the meaning of § 1, paragraph 1, 8 °;
-with a maximum equal to ten ninth the amount of production and operation expenses performed in Belgium as referred to the § 1, paragraph 1, 7 ° within a maximum period of 18 months from the date of signature of the framework convention for obtaining of the certificate of tax shelter for the production of this referred to the § 1, paragraph 1, 5 °.
For animated films, this 18-month time limit is extended by six months.
However, if the total of the expenses incurred in Belgium which are directly related to the production, as referred in the § 1, paragraph 1, 8 °, is less than 70 per cent of expenditure of production and exploitation in Belgium as referred to the § 1, paragraph 1, 7 °, the tax value of the tax shelter certificate is then reduced proportionately by the percentage deviation of actual expenditures that are directly related to production over the 70 BW.
required.
Maximum total tax certificates tax shelter values are per eligible work to 15,000,000 euro.
A tax shelter certificate may be transferred only once, by a company of eligible production to an eligible investor or several eligible investors when the tax shelter certificate is issued by parts.
§ 9. The payments agreed to in the framework convention must be made in full at the latest three months before the tax shelter certificate is issued.
§ 10. The framework convention for the production of an eligible work mentions mandatory: 1 ° the name, business number, the social object and the date of the approval of the eligible production Corporation;
2 ° the name, business number, and the social subject of eligible investors;
3 ° the name, business number and the social object or the identity and the national number, and the date of approval

eligible intermediaries;
4 ° the identification and description of the eligible work subject of the framework convention;
5 ° the estimates required for the work, distinguishing between:-the taken part supported by the production company.
-the share funded by each of the eligible investors already committed;
6 ° the mode of remuneration agreed to the sums allocated to the implementation of the framework convention;
7 ° the guarantee that every eligible investor is not a production company or a television broadcasting undertaking;
8 ° the production company commitment:-to respect the status of expenditure of 90 p.c. in Belgium according to the § 1, paragraph 1, 7 °;
-limit affected in principle are final enforcement of the framework convention in exemption of profits to a maximum of 50 per cent of the overall estimates of the eligible work for all eligible investors and actually affect all moneys paid pursuant to § 2 execution of this budget;
-to carry out at least 70 per cent of the expenditure referred to the § 1, paragraph 1, 7 °, in expenses directly related to the production referred to the § 1, paragraph 1, 8 °;
-to mention in the closing credits of the work the support provided by the Belgian legislation on the tax shelter;
9 ° the commitment of the production company and intermediaries comply with legislation relating to the regime of tax shelter and in particular of paragraph 12 of this article.
The King determines the practical modalities for development, content and form of the framework convention.
§ 11. Any economic or financial benefit can be awarded to the eligible investor, with the exception of commercial gifts of small value for the purposes of article 12, § 1, paragraph 1, 2 °, of the value added tax Code. The guarantee of the completion of the eligible work and the issuance of the certificate of tax shelter is not considered as an economic or financial benefit, provided that the eligible investor, when this warranty, receive more than the amount of the taxes and the default interest payable by the latter in the event of non-compliance with this condition of relief.
Eligible investors may have held or hold, directly or indirectly, the rights in the eligible work.
The provisions preceding do not derogate from the right of the eligible investor to claim the possible deduction as business expenses of other amounts than those paid in the context of the framework convention and that were also affected the production of eligible works and that, under the conditions referred to in articles 49 and following.
By way of derogation from articles 23, 48, 49 and 61, expenses and losses, as well as losses, provisions and depreciation in connection with the acquisition of the tax shelter certificate are not deductible as business expenses or losses, or exempt.
§ 12.
The offer of certification tax shelter by the eligible production Corporation or eligible intermediary and intermediation in the framework agreements are made in accordance with the provisions of Act of 16 June 2006 on public offers of investment instruments to trading on regulated markets.
S. 10. the entry into force of this Act is determined by the King the 1st day of the 2nd month following the prior approval of the European Commission, which applies to the framework agreements signed after that date.
Framework conventions signed before that date can still benefit from the application of article 194ter, the 1992 income tax Code, as it existed before be amended by this Act.
Promulgate this Act, order that it be under the seal of the State and published by le Moniteur.
Given to Brussels, may 12, 2014.
PHILIPPE by the King: the Minister of finance, K. GARG sealed with the seal of the State: the Minister of Justice, Ms. A. TURTELBOOM _ Note (1) House of representatives (www.lachambre.be): Documents: complete record 53-3490: 22 April 2014.
Senate (www.senate.be): Documents: 5-2859 annals of the Senate: April 24, 2014.