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INCOME TAX ASSESSMENT ACT 1997 - SECT 376.35

Film production company entitled to refundable tax offset for post, digital and visual effects production for a film (PDV offset)

             (1)  A company is entitled to a * tax offset under this section (the PDV offset ) for an income year in respect of a * film if:

                     (a)  the company's * qualifying Australian production expenditure on the film, to the extent that it relates to * post, digital and visual effects production for the film, ceased being incurred in the income year; and

                     (b)  the * Arts Minister has issued a certificate to the company for the post, digital and visual effects production for the film under section 376- 45 (certificate for the PDV offset); and

                     (c)  the company claims the offset in its * income tax return for the income year; and

                     (d)  the company:

                              (i)  is an Australian resident; or

                             (ii)  is a foreign resident but does have a * permanent establishment in Australia and does have an * ABN;

                            when the company lodges the income tax return and when the tax offset is due to be credited to the company.

The claim referred to in paragraph (c) is irrevocable.

Note:          The PDV offset is a refundable tax offset: see section 67-23.

             (2)  Post, digital and visual effects production for a * film means:

                     (a)  the creation of audio or visual elements (other than principal photography, pick ups or the creation of physical elements such as sets, props or costumes) for the film; and

                     (b)  the manipulation of audio or visual elements (other than pick ups or physical elements such as sets, props or costumes) for the film; and

                     (c)  activities that are necessarily related to the activities mentioned in paragraph (a) or (b).

Note:          3D animation, digital compositing and music composition and recording are examples of post, digital and visual effects production.

             (3)  The company is not entitled to the PDV offset if:

                     (a)  the company or someone else claims a deduction in relation to a unit of industrial property that relates to copyright in the * film under former Division 10B of Part III of the Income Tax Assessment Act 1936 ; or

                     (b)  a final certificate for the film has been issued at any time under former Division 10BA of Part III of the Income Tax Assessment Act 1936 (whether or not the certificate is still in force); or

                     (c)  a certificate for the film has been issued at any time under section 376-20 (certificate for the location offset) (whether or not the certificate is still in force); or

                     (d)  a certificate for the film has been issued at any time under section 376- 65 (certificate for the producer offset) (whether or not the certificate is still in force).



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