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IRIS 2017-1:1/23


Franceschini Law on cinema and audiovisual sector

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Ernesto Apa, Fabiana Bisceglia

Portolano Cavallo Studio Legale

On 26 November 2016 the new statute on cinema and audiovisual sector, called the “Franceschini Law” after the name of the current Minister of Cultural Heritage and Activities, has been published in the Official Journal of the Italian Republic.

The Franceschini Law provides four key elements: first, the creation of a fund aimed at financing the cinema and audiovisual industry. Such a fund will be funded by a quote equal to the 11 percent of the VAT and IRES tax paid by the companies operating in the communications industry (in a broad sense). The amount of the fund will be no lower than EUR 400 million per year.

Second, there will be a reduction in the percentage of selective contributions and introduction of automatic contributions, in favour of production companies and companies distributing Italian cinematographic or audiovisual works abroad. Selective contributions will be between 15 percent and 18 percent of the fund mentioned above and will be devoted to debut films, second films, films by young directors, etc. Third, six different kind of tax credits will be provided, in order to incentivize cinematographic and audiovisual production and distribution, post-production companies, etc. Fourth, the development of movie-theatres and digitalisation of artistic heritage. Restructuring existing movie-theatres and new openings will be funded by an extraordinary plan of EUR 120 million in five years. There is also a plan for the digitisation of the cinematographic and audiovisual heritage.

Moreover, in relation to regulatory reform, the Government is delegated to pass new rules on the public film registry, on film review (with cancellation of the State rating system, so called prior censorship) and on the promotion of European works by audiovisual media service providers. Finally, there will be the creation of the “Superior council of cinema and audiovisual” made up by eleven members, with an advisory and supporting role in regulations and policies in these sectors, as well as in the preparation of guidelines and general criteria for the allocation of public resources.

Legge 14 novembre 2016, n. 220 - Disciplina del cinema e dell'audiovisivo. (16G00233) (GU Serie Generale n.277 del 26-11-2016) IT
  Law no. 220 of 14 November 2016, Regulation of cinema and audiovisual works