08 Feb ’16
Tax Rebate Changes
In 2016, France increased its efforts to attract foreign films by loosening language restrictions and increasing the amount of tax rebates available for films that are shot in France. In the past, Frances Tax Rebate for International Productions (TRIP) provided a domestic tax rebate of 20 percent, but that number was increased to 30 percent earlier this year. Additionally, France had not previously provided tax rebates to non-French language films, but now, these tax rebates are available for both French- and English-speaking productions.
Why Did France Change Its Tax Rebate Requirements and Benefits?
France changed its tax rebate system to become a stronger player in the film market. France competes with Germany and the United Kingdom to attract foreign film productions. TRIPs increase provides France with a greater ability to compete with these other countries, which had been providing more attractive tax rebate offers to film producers.Additionally, the increase in English-speaking French audiences has encouraged many French film makers to produce their films in English. The pre-2016 language requirements hindered these filmmakers ability to reach this demographic, as well as their ability to be more marketable worldwide.
France Sees Immediate Results
Compared to other countries, France has more restrictive working hours and stronger unions, resulting in higher film production costs; however, the increase in TRIP funds appears to have overcome these extra costs. The number of films scheduled to be shot in France has increased dramatically.