Global Daily Tax News, Ireland Enhancing Visual Effects Industry Tax Reliefs, (May 14, 2026)

The European Union has approved a request from Ireland to enhance its suite of tax breaks for the visual effects industry.

The decision authorizing the measure was published in the EU's Official Journal on May 12, 2026.

As announced in Ireland's October 2025 Budget, the Section 481 Film Tax Credit will be enhanced to provide for a new 40 percent rate of relief for productions with a minimum of EUR1m of eligible expenditure on relevant visual effects work – an increase from 32 percent. This rate will apply up to a maximum of EUR10m per production.

The standard rate of 32 percent will continue to be available in respect of eligible expenditure above the EUR10m cap.

Provisions for the changes were included in Article 43 of the 2025 Finance Bill.

Welcoming approval from the European Commission, which came at the end of April 2026, the Government said: "Work is underway to complete drafting of the Regulations necessary to underpin the new VFX provisions, and a commencement order will be signed by the Tanaiste and Minister for Finance [Simon Harris] in the coming weeks."

Harris said: "I am pleased that the Commission has approved this measure, and the Irish Government looks forward to working with Screen Ireland and VFX industry stakeholders to further develop this sector in Ireland. The introduction of this measure will represent a continued strengthening of Ireland's tax incentives for film productions in Ireland and complements the Government's long-standing support to screen production and Irish creative industries."