Key Benefits:
The Prime Minister,
On the report of the Minister of State, Minister of Economy, Finance and Industry, and the Minister of Culture and Communication,
In view of the general tax code, in particular its Articles 220 e and 220 F and Annex III to this code;
Given the code of the film industry;
Vu The amended Article 57 of the Finance Act for 1996 (N ° 95-1346 of 30 December 1995);
Given the amended Decree No. 99-130 of 24 February 1999 on financial support for the film industry;
Given Decree No. 2004-21 of 7 January 2004 For the purposes of the application of Articles 220 e and 220 F of the General Tax Code relating to the approval of long-term cinematographic works qualifying for the expenditure tax credit in the production of cinematographic works,
Decline:
" Article 1. -In Book I, Part I, Title I, Chapter Ier bis, of Annex III to the General Tax Code, Section VI quater is entitled ' Tax credit for expenses in the production of cinematographic works " And includes items 46 quater-0 YL at 46 quater-0 YR thus regiged:
" Art. 46 quarter-0 YL. -Long-term cinematographic works whose production expenditure shall be eligible for the tax credit provided for in Articles 220 e and 220 F of the General Tax Code shall be those laid down in Article 6 of Decree No 99-130 On February 24, 1999, relating to the financial support of the film
. Delegated production undertakings which qualify for the tax credit provided for in Articles 220 e and 220 F of the General Tax Code are those defined in Article 6 of the aforementioned
. 46 quater-0 YM. -For the purposes of determining the expenditure referred to in III of Article 220 sexies of the General Tax Code, it should be noted: '
' 1 ° For cinematographic works of fiction and for documentary cinematographic works:
" A. In respect of salaries and social charges relating to technicians and workers in film production engaged by the production undertaking: remuneration and their accessories as well as social expenses, to the extent that they Are required social contributions;
" B. For expenses related to the use of shooting studios, including the construction of sets, special effects of shooting, costumes and hairstyles and make-up: expenses for the rental of film sets and annexes, of Construction of decor in the studio or in rented premises exclusively dedicated to the shooting, lighting, preparation and carrying out of the special effects of shooting, including the cascades, the rental and the making of costumes, headgear and Makeup;
" C. For the expenditure of technical equipment necessary for the filming: the expenditure of equipment for the taking of views, machinery, lighting and sound-taking;
" D. For post-production expenditure, including special effects: laboratory expenditure image, image editing, voice recording, blasting and sound creation, mixing, sound editing, digital special effects and Generic and trailers;
" E. For expenses of film and other image material and laboratory expenses: expenses of negative film image, sound film sound, film labs, finishing laboratories, video lab and Captioning;
" 2 ° For animated cinematographic works:
" A. In respect of salaries and social charges relating to film production technicians and employees responsible for the preparation and production of animation engaged by the production undertaking: remuneration and their remuneration As well as social charges, to the extent that they correspond to compulsory social security contributions;
" B. Expenditure related to the use of specialised providers in the preparation and production of animation: the expenditure corresponding to the work invoiced by the undertakings which carry out, on behalf of the undertakings of Production, preparation and manufacturing of animation as well as expenditure for the construction of sets;
" C. For the expenditure of technical equipment necessary for the manufacture of the images: expenditure on lighting and lighting equipment, as well as the expenditure of equipment, supplies, hardware and computer software directly Assigned to the setting up and manufacturing of the animation of a particular work. The aforesaid computer software must be amortized during the period of implementation of the work for which they were specially created or acquired;
" D. For post-production expenditure, including special effects: laboratory expenditure image, image editing, voice recording, blasting and sound creation, mixing, sound editing, digital special effects and Generic and trailers;
" E. For the expenses of film and other image material and laboratory expenses: expenses of negative film image, sound film sound, finishing laboratories, video lab and subtitles.
" Art. 46 quarter-0 YN. -For the purpose of determining the expenditure referred to in the b, c, d and e of the A of III and in the b, c, d and e of 2 ° of the III of Article 220 sexies of the general tax code, the appropriations for tax-deductible depreciation allowances must be retained In respect of capital property held by the delegated production undertaking and directly affected by the production of the cinematographic work that is eligible for the tax credit. Only the depreciation allowances corresponding to the period during which the asset was actually used for the realization of the work eligible for the tax credit
taken into account. Art. 46 quarter-0 YO. -The personnel referred to in the a of 1 ° and in the 2 ° of Article 46 quater-0 YM shall be those engaged by the production undertaking delegated for the production of a specified cinematographic work. They include:
" 1 ° For cinematographic works of fiction and documentary cinematographic works:
" A. Technicians of film production other than the director who are the ones responsible: preparation and assistance of production; technique and artistic quality of the taken of views; technique and quality Artistic creation and performance of sets; artistic creation of costumes, wigs and clothing accessories; clothing and clothing accessories; The dressing and maintenance of the costumes; the make-up of the composition of the actors; the making of the wigs and the postiches and the performance of the hairstyles; the accessories of the set and the decor; the artistic and technical assembly of the Images and sounds; the preparation and realisation of special turning effects, including cascades; management and administrative, technical and accounting management of production;
" B. Film production workers who are responsible for: machinery; lighting; decor construction;
" 2 ° For animated cinematographic works:
" A. Technicians of film production other than the director who are those in charge: assistance in directing, directing and directing the writing of the cinematographic work; Administrative, technical and accounting management of production;
" B. The collaborators responsible for the preparation of the animation which are the ones in charge: the creation of the script; the design and modeling of the characters; the design and modelling of the sets; the exhibition sheets ;
" C. The employees responsible for the production of the animation which are the ones responsible: the creation of the animation; the execution of the animation; the setting up of the sets; the execution of the sets; the tracing, the Colorization, rendering and lighting; digital assembly; special effects; artistic and technical assembly of images and sound.
" Art. 46 quarter-0 YP. -For the purposes of the provisions of Articles 220 e and 220 F of the General Tax Code, undertakings must file a special declaration with the accounting officer responsible for the recovery of the corporate tax on the date of liquidation Of this tax. By way of exception, corporations under the corporate group regime provided for in section 223 A of the General Tax Code, other than parent companies, will be required to attach this special declaration to the annual reporting of results Are required to file under section 223 of the above code.
" A copy of the special declaration must be sent within the same period to the National Cinematography
. Art. 46 quarter-0 YQ. -For a particular cinematographic work, the starting point of the period provided for in the last paragraph of Article 220 F of the General Tax Code shall mean the end of the last financial year in respect of which a tax credit was obtained on the basis of Production expenses for this work.
" Art. 46 quarter-0 YR. -The tax credit for film production companies is charged on tax owing after non-release and non-refundable tax credits. ".
Irrespective of the reporting obligations under Article 46 quater-0 YP, corporations subject to tax on corporations that are required to pay this tax before November 1, 2004, must append to their Declaration of the results of the financial year in which the expenditure referred to in Article 220 (e) of the General Tax Code was carried out, a copy of the special declaration transmitted to the accounting officer responsible for the recovery of tax on Companies.
In the second paragraph of Articles 8 and 11 of the aforementioned Decree of 7 January 2004, the words: To the I of Article 220 sexies of the General Tax Code " Are replaced by the words: " To Article 220 sexies of the general tax code ".
The Minister of State, Minister of Economy, Finance and Industry, the Minister of Culture and Communication, and the Secretary of State for Budget and Budget Reform are responsible for each Concerning the execution of this Decree, which will be published in the Official Journal of the French Republic.
Done at Paris, 28 April 2004.
Jean-Pierre Raffarin
By the Prime Minister:
Minister of State, Minister of Economy,
Finance and Industry,
Nicolas Sarkozy
Minister of Culture
Communication,
Renaud Donnedieu de Vabres
The Secretary of State for the
Budget and Budget Reform,
Dominique Bussereau
