Advanced Television

Study: French tax rebate boosts streaming commissions

July 20, 2023

From Pascale Paoli-Lebailly in Paris

The Tax Rebate for International Productions (TRIP) has become an attractive factor for French territory and productions facilities, according to an impact study from 2017 to 2021 carried out by public funding body CNC. Before it was set up, foreign production expenditure in France represented around €50 million each year. In 2021, this level was multiplied eightfold to €402 million for a €97 million tax expenditure. The global production budget of TV or movie works shot in France amounted to €946 million.Between 2017 and 2021, the TRIP has raised an additional €1.1 billion for an additional fiscal expenditure of €347 million.The TRIP amounts up to 30 per cent (or 40 per cent, if the French VFX expenses are more than €2 million) of the qualifying expenditure incurred in France and can reach a maximum of €30 million per project. Projects have to include elements related to the French or European culture, heritage, and territory. For 2022 and 2023, the anticipated fiscal expenditures are significantly higher than the previous years with forecast at +162 per cent in 2023 compared to 2020. Over this period, foreign productions should spend an additional 141 per cent as a result of growing demand from international platforms. Streamers’ commissions for TV series and productions represented 62 per cent in 2021 versus 2 per cent in 2017, 75 per cent in 2022.The amount to 40 per cent for VFX expenses has also been successful, resulting in €89 million in 2022 and 2023 staying in France. In a context of strong international competition, where eleven countries in Europe have set up tax rebates policies, this financial tool appears as “essential to bring international productions to France” says the CNC.The international tax rebate can be granted to projects that incur €250,000 or 50 per cent of their global budgets in French expenditures and, for a live action production, have at least five days of shooting in France. It can reach a maximum of €30 million per project.

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