Decree-Law no. 45/2018, of June 19th, was officially published, which creates the Tourism and Cinema Endorsement Fund and repeals the tax benefit for film production set in article 59.º-F of the Statute of Tax Benefits and 92.º/2/h) of the CIT.
The Tourism and Cinema Endorsement Fund (“Fund”) is represented by the Tourism Institute of Portugal, and is meant to support actions, initiatives and projects which contribute to the country’s position as a touristic destination, for the territory cohesion, for the reduction on tourism seasonality and tourism sustainability, namely through the gathering of international main events and international shootings in Portugal. Consequently, the Government decided to repeal the tax benefit for film production set in article 59.º-F of the Statute of Tax Benefits and 92.º/2/h) of the CIT.
The tax benefit allowed, among others, for residents and non-residents with a permanent establishment to deduct to the CIT 25% of the cinematography and audiovisual production and post-production expenses, provided that they were incurred in national territory.