Tax Shelter

The well known Belgian Tax Shelter system has been successfully
encouraging the production of audiovisual works in Belgium for ten years.


An important reform as regards the TAX SHELTER system has been implemented on January 1st 2015.
This reform has the following objectives:

  • To improve the investor’s security;
  • To increase the amounts actually devoted to the audiovisual production;
  • To better control the system in order to guarantee its durability.



The Tax Shelter system is a tax incentive allowing the Belgian or foreign companies established in Belgium to invest in works intended for cinema or television and to obtain in return tax deductions reducing the taxable profit.
The system is open to Belgian productions as well as qualifying international co-productions with Belgium.

For the Investor



The investor prefinances the producer’s expenses;

  • reduces temporarily his/her taxable income.
  • Up to 310% of the investment is deductible by the investor and receives a remuneration for the sums paid calculated on the basis of EURIBOR’s rate – 12 months + 450 basis points
  • receives a Tax Shelter certificate, which allows him/her to change the temporary cut of his/her taxable income into a permanent cut.



The investment is limited to 50% of the reserved benefits during
the taxable period, with a limit of 750,000 € per taxable
period.


The eligible investor is the resident company or the Belgian establishment of a non-resident company other than:

  • an eligible production company such as mentioned in the second point (or a company which is linked to this company); or
  • a broadcasting company, which signs a framework agreement pursuant to which it commits itself to pay sums in order to receive a tax shelter certificate.


Text: Federale Overheidsdienst Financiën



More info: http://financien.belgium.be/sites/default/files/downloads/brochure-tax-shelter-2015-en.pdf