Deduction for investments in Spanish cinematographic productions
Regulation:Article 36.1 LIS
In order to apply the deduction for investments in Spanish productions of feature films and fiction, animation or documentary audiovisual series, which allow the production of a physical support prior to their serialised industrial production in the Canary Islands, entities must comply with the general requirements established for these deductions in article 36.1 of the LIS.
The deduction percentages established in article 36.1 of the LIS will be increased according to the provisions of article 94.1 a) of Law 20/1991. For these purposes, the following percentages shall apply:
The 54 percent in respect of the first million deduction base (the higher of:30% x 1.8 = 54% or 30% + 20% = 50%).This percentage of 54 per cent may be applied provided that the aid intensity does not exceed 50 per cent of the eligible costs, under the terms laid down by Article 54 of Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.
The 45 per cent on the excess of this amount (the greater of 25% x 1.8 = 45% or 25% + 20% = 45%).
The limits applicable to this deduction will be increased in accordance with the provisions of article 94.1.b) of Law 20/1991, and will therefore be subject to the joint limit of 60/90 or 70/100 (La Palma, La Gomera and El Hierro) per cent.
Furthermore, the fourteenth additional provision of Law 19/1994 establishes, with effect for tax periods beginning on or after 1 January 2021, a specific limit for this deduction, indicating that its amount may not exceed the result of increasing by 80 per cent the maximum amount set out in Article 36.1 of the LIS, in the case of productions carried out in the Canary Islands.Therefore, the maximum amount of this deduction will be 18 million euros (10 million euros x 1.8).