Deduction applicable to the taxpayer who participates in the financing of Spanish film productions and live shows (art. 39.7 LIS)

With effect for tax periods beginning on or after January 1, 2021 , the taxpayer who participates in the financing of Spanish feature film productions and cinematographic short films and audiovisual series of fiction, animation, documentaries or production and exhibition of live performances of performing and musical arts carried out by another taxpayer, may apply the deductions provided for in sections 1 and 3 of article 36 of the LIS , provided that it provides amounts as financing, to cover all or part of the production costs without acquiring intellectual or other property rights regarding the results thereof, whose property must in all cases belong to the producer. Contributions may be made at any stage of production until the nationality certificate is obtained.

1. Particularities of the deduction

a) Requirements

1. Subscription of a financing contract

   Both the producer and the taxpayer who participate in the financing of the production must sign a financing contract which specifies, among others, the following points:

   • Identity of the taxpayers participating in the production.

   • Production description.

   • Production budget with detailed description of the expenses and, in particular, those that are going to be carried out in Spanish territory.

   • Form of financing production, separately specifying the amounts contributed by the producer, those contributed by the taxpayer who participates in its financing and those that correspond to subsidies and other support measures.

   • The other issues that are established by regulation.

2. Communication to the tax administration

   In addition, the financing contract and certification of compliance with requirements a') and b') of section 1 or requirement a') of section 3 of article 36 of the LIS must be presented, as appropriate, in a communication to the Tax Administration , signed by both the producer and the taxpayer who participates in the financing of the production, prior to the end of the tax period in which the deduction is generated, in the terms established regulations are established.

b) Refund of the amounts contributed

It will be made through liquid deductions in installment , which in accordance with the contract and the provisions of sections 1 and 3 of article 36 of the LIS , the producer transfers it to the taxpayer who participates in the financing.

c) Amount of the deduction

The taxpayer who participates in the financing will have the right to credit the deduction in their self-assessment, determining its amount under the same conditions that would have been applied to the producer. However, the taxpayer who participates in the financing of production may not apply a deduction greater than the corresponding amount , in terms of quota, resulting from multiplying by 1.20 the amount of the amounts disbursed by him for the financing of that . The excess may be applied by the producer.

The accreditation of the deduction by the taxpayer who participates in the financing will be incompatible , totally or partially, with the deduction to which the producer would be entitled as established in sections 1 and 3 of article 36 of the LIS .

2. Filling in form 200

The taxpayer who participates in the financing of production and wants to prove his right to apply the deduction of sections 1 and 3 of article 36 of the LIS , must first mark the box [00074] «Taxpayer who finances film productions and others with the right to deduction under art. 36.1 and 3 LIS» on page 1 of model 200.

In addition to checking the box [00074], the taxpayer who participates in the financing of production, in order to apply the deduction provided for in sections 1 and 3 of article 36 of the LIS , must enter in section "Additional information on Spanish film productions and live shows" on page 17 of form 200, the NIF of the taxpayer who carried out the production or show they finance.