ANNOUNCEMENT 29 Sep 2015In September 2015, the government of France announced a targeted tax change.
NUMBER OF INTERVENTIONS
Letter from the EC to France, 29.09.2015 (SA.42419 & SA.42428) (in French)
On 29 September 2015, the European Commission approved the amendment of a tax credit scheme for French films and audiovisual works, initially introduced in 2006.
This represents already a sixth amendment of the scheme (cf. Related Measures). The changes included an increase of the tax credit rate for films from 20 to 30%. Furthermore, the ceiling for international tax credit was raised from 20 to 30 million EUR.
Regarding the asssessment of the amendment, the EC states that "The notified amendments do not affect the compatibility analysis of aid made in previous decisions, in particular concerning the general legality principle, cultural criterion, conditions for regionalization and the aid intensity" (own translation). In its initial assessment of the scheme, the Commission did mention though that "The notified support measures are granted to a specific economic sector and only to companies that have the aforementioned characteristics. This selectivity of the measures in question has the consequence that they distort or threaten to distort competition" (own translation).
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.
On 18 March 2016, the scheme was again amended (cf. Related Measures). Hence, this measure is no longer classified as implemented.