IMPALA Welcomes Music Tax Credit For Small And Medium Companies In Italy
European independent music companies welcome the Italian Government's effort to set up a tax credit to support the production of emerging artists. Much anticipated by Italian independent companies, this measure was placed by the Italian Government in its 2007 budget law.
The Italian tax break will allow independent record companies to benefit from a credit amounting to 10 percent, which will cover the "production, development, digitization and sales promotion expenses of musical video and audio recordings of first or second works by emerging artists."
For the next three years this measure will contribute to support independent record companies in their quest to scout and promote new talent. Deliberately aimed at "emerging artists," the credit is limited by EC rules (Commission Regulation (EC) No 69/2001) and is aimed at companies with a turnover not exceeding 15 million. Companies with a higher turnover or belonging to a radio or television service provider will not be able to benefit from this tax credit.
This tax break follows a recent and much welcomed French framework law. Both initiatives highlight the importance of the music industry in the European economy and stress the need to foster innovation and sustain new and diverse talent in a market subject to excessive concentration.
IMPALA congratulates the Italian Government for acknowledging the relevance and specificity of the music sector and of independent producers as vehicles for innovation, creativity and cultural diversity.
Patrick Zelnik, IMPALA president and president CEO of Naïve, France: "Italy's effort to sustain small and medium music enterprises shows that there is a renewed attention toward music and the cultural and economic relevance of this sector in Europe. The French Ministry for Culture recently led the way with an exemplary new law which also regards music as an asset to be fostered with proactive policies which recognize the role of independents. This is essential, especially when we consider the extent to which they are one of the main driving forces of the economy and culture."
Martin Mills, chairman for IMPALA and president of Beggars Group, UK: "These tax credits in two main European territories represent a new opportunity for a sector of the economy which leads in innovation and fosters new talent, yet struggles with the downsides of globalization and concentration. Other territories should follow suit to promote the diversity of European music and provide new artists with as many opportunities as possible."
Mario Limongelli, president PMI, Italian Independent Record Companies Association: "We asked for consideration in favour of the independent music sector. This is the first sign of genuine action by the Italian Government. Nonetheless we still expect a more organic legislative framework."
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