Ireland: European Commission approves modification and extension of film tax relief scheme
Extension of scheme authorized from January 1, 2025, until December 31, 2028
The European Commission (EC) on March 27, 2025, approved the Irish tax authority’s plan to modify and extend the Irish film tax relief scheme, which aims to support the production of feature films, television dramas, animations, and creative documentaries having a cultural content in Ireland, effective from January 1, 2025, until December 31, 2028.
The aid is available to film production companies established in the European Economic Area (EEA) and operating in Ireland. The aid is granted in relation to eligible audiovisual works and is calculated based on the amount spent in Ireland on a given film production. Qualifying audiovisual works must have a minimum production budget of €250,000 and incur at least €125,000 of eligible expenditure.
The aid takes the form of a reduction of the tax due that may be claimed against the producer company’s corporation tax liability and amounts to 32% of whichever is the lowest of: (1) the eligible expenditure amount, (2) 80% of the total cost of production of the film, or (3) €125 million.
The proposed amendment would introduce an additional aid category for small to medium sized feature film productions (the “Scéal Uplift”) eligible for an enhanced tax credit rate of 40% (i.e., an uplift of 8% compared to the existing 32% tax relief). To qualify for the enhanced support, productions must then meet additional criteria, such as: (1) the project is a feature film (including animated film), (2) the producer company has incurred qualifying expenditure of less than €20 million on the production of the film, and (3) an individual who is national of, or ordinarily resident in, Ireland or another EEA state is engaged in a key creative role on the production.
Read an April 2025 report prepared by the KPMG’s EU Tax Centre