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Practical Income Manual 2020.

C. Deduction for production of certain live shows (art. 36.3 LIS)

Percentage of deduction

Expenses incurred in the production and exhibition of live performing and musical arts shows will have a 20% deduction.

Basis of deduction

The base of the deduction will consist in the direct costs of an artistic, technical and promotional nature, incurred in such activities.

Maximum deduction amount

The deduction generated in each tax period cannot exceed the amount of 500,000 euros per taxpayer.

In short:

Percentage of deductionMaximum amountBasis of deduction
20% €500,000
Without exceeding 80% of the expenses
Direct artistic, technical and promotional costs incurred.

Requirements

The necessary requirements to apply the deduction are:

  1. The taxpayer must have a certificate to prove this, under the terms established by Ministerial Order, issued by the National Institute of Performing Arts and Music.
  2. That, of the profits obtained in the development of these activities in the year in which the right to deduction is generated, the taxpayer allocates at least 50 percent to the performance of activities that give the right to the application of the planned deduction. in this section.

    The time period for meeting this obligation is from the start of the fiscal year in which the aforementioned profits are acquired, and 4 years following the close of the same fiscal year.

The base of this deduction will be reduced by the amount of the subsidies received to fund such expenses.

Limit

The amount of the deduction, together with the subsidies received by the taxpayer, may not exceed 80% of said expenses.