Belgium to overhaul film tax shelter

After more than a year of lobbying, Belgium’s independent film producers have successfully persuaded the government to move forward and reform the country’s film tax shelter. 

The proposed reform, which must pass both the Belgian Parliament and European Commission, will restructure the tax shelter and pave the way for an even playing field among Belgian producers. The reform will also increase transparency in the system and cap limits on investors’ recoupment options. 

Although the tax reforms will limit the role of investors, it will open the door to increased international co-productions and even to production companies that are not European-based. The changes will also prohibit investors from gaining the right to exploit the films, a gain for filmmakers.

If everything goes to plan, the reforms should pass through both Parliament and the Commission by the end of 2014.