8.5 Deduction for foreign film productions (Article 36.2 LIS)

The amount of the deduction for foreign film productions that apply in the tax period will be entered in code [01039], "Deductions for foreign film productions (art. 36.2 LIS )". declaration object.

Requirements

Producers registered in the Registry of Cinematographic Companies of the Ministry of Culture and Sports that are responsible for the execution of a foreign production of feature films or audiovisual works that allow the preparation of a physical support prior to their serial industrial production.

Regulations may establish the requirements and obligations to have the right to practice this deduction.

Deduction base

The basis of assessment will include the following expenses made in Spanish territory directly relating to the production:

• The expenses of creative personnel, provided they have tax residence in Spain or in a Member State of the European Economic Area, with a limit of 100,000 euros (50,000 euros until 12-31-2016) per person.

• Expenses deriving from the use of technical industries and other suppliers.

Deduction amount

Producers may apply a deduction on the full quota of 20 percent (15 percent until 12-31-2016) of the expenses incurred in Spanish territory, provided that the expenses incurred in Spanish territory are, at least, 1 million euros.

The amount of this deduction may not exceed 3 million euros (2.5 million euros until 12-31-2016), for each production carried out.

Limitation of deduction

This deduction is excluded from the limit referred to in the last paragraph of article 39.1 of the LIS. Therefore, this deduction will not be computed for the purposes of calculating said limit.

The amount of this deduction, together with the rest of the aid received by the taxpayer, may not exceed 50 percent of the production cost.