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 1 January 2021 , the taxpayer who participates in the financing of Spanish productions of feature and short films and audiovisual series of fiction, animation, documentaries or production and exhibition of live performing arts and musical shows 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 contributes amounts as financing, to cover all or part of the costs of production without acquiring intellectual property or other rights with respect to the results thereof, the ownership of which must in all cases belong to the producer. Contributions may be made at any stage of production until the certificate of nationality is obtained.

1. Particularities of deduction

a) Requirements

1. Signing a financing contract

   Both the producer and the taxpayer who participate in the financing of the production must financing contract that specifies, among others, the following details:

   • Identity of the contributors participating in the production.

   • Production description.

   • Production budget with a detailed description of the expenses and, in particular, those that will be incurred in Spanish territory.

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

   • Other issues established by regulation.

2. Communication to the tax authorities

   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, as appropriate, must be submitted in a communication to the Tax Administration , signed by both the producer and the taxpayer participating in the financing of the production, prior to the end of the tax period in which the deduction is generated, in the terms established by regulation.

b) Refund of amounts contributed

It will be carried out through the net deductions in quota , which in accordance with the contract and the provisions of sections 1 and 3 of article 36 of the LIS , the producer transfers 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 his/her 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 amount corresponding, 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 participating in the financing will be incompatible , totally or partially, with the deduction to which the producer would be entitled according to the provisions of sections 1 and 3 of article 36 of the LIS .

2. Filling in form 200

The taxpayer who participates in the financing of the 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 cinematographic productions and others with the right to the deduction of art. 36.1 and 3 LIS" on page 1 of form 200.

In addition to checking box [00074], the taxpayer who participates in the financing of the 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 carries out the production or show they finance.