Practical measures to support producers approved by Parliament

In response to the COVID-19 pandemic, an initial powerful measure was implemented by the Tax Shelter unit on 13 March 2020 to allow producers to extend by 6 months the period during which their expenditure eligible for the Tax Shelter can be incurred. The aim of this is to facilitate their management of the inevitable interruptions to shoots and repetitions stemming from the health crisis.

This initiative has just been further strengthened following Parliament’s approval on 20 May 2020 of a draft law containing various urgent fiscal measures in response to the health crisis. For all projects affected by this crisis, producers will now benefit from a period of 24 months in which to incur their expenditure on audiovisual works, and from 30 months for animation projects and theatrical works, a 6-month extension in relation to the previous situation.

1. See the blog article "Impact of coronavirus crisis on cinema & performing arts sector".

Last update on : 21.11.2020

Raising of the absolute exemption limit

Another highly significant measure has been taken to “save” the Tax Shelter mechanism, which contributes an average of 30% towards the funding of films in Belgium.

The temporary increase (until financial year closures on 31 December 2021) in the absolute exemption limit for investors: €1,700,000 (instead of €850,000) for financial years closing on 30 December 2020 at the latest and €2,000,000 (instead of €1,000,000) for financial years closing between 31 December 2020 and 31 December 2021.

Last update on : 21.11.2020

Backdating of expenditure

For both for audiovisual works and theatrical works, it will now be permissible to incur up to 50% of the production & operating expenses within a period of 6 months prior to the signing of a Framework Agreement, without any other conditions. This flexibility was strongly requested by the sector and will apply permanently to all framework agreements signed from 12 March 2020.

These practical measures will enable the cultural sector to breathe a little more freely.

Last update on : 21.11.2020