Belgium

Tax Shelter regime for audio-visual work 

The Tax Shelter regime for audio-visual works has transformed the rather artisanal Belgian film sector into a solid professional economy.

KPMG in Belgium has built up a distinct reputation in the Tax Shelter regime for Belgian audio-visual works (application of article 194ter of the Belgian Income Tax Code).  

Thomas Zwaenepoel

Thomas Zwaenepoel

Partner

+32 (0)27083861

The Tax Shelter is an important media specific tax break that provides corporate investors, within certain limitations, with an exemption from their retained tax profits equal to 150% of the investment made, in view of financing the production of a Belgian audio-visual work. Since its introduction in 2002, its economic impact on that sector has been tremendous: the generated investments from Belgian corporate investors amount to around EUR 45 million in 2007, and between EUR 60 million and EUR 80 million for 2008, while more than EUR 200 million has been invested since its conception.

 

This success transformed the rather artisanal Belgian film sector into a solid professional economy. Especially during the economic downturn, the Tax Shelter regime has proven to be even more attractive than before for companies with tax capacity and excess cash. This is due to relatively higher net returns and low risk, compared to more traditional financial investment options. KPMG in Belgium has developed financial models that allow investors to simulate potential net returns from their Tax Shelter investment.