Scope of application and requirements

With effect for tax periods beginning on or after January 1, 2021 , in addition to the producer who incurs expenses in the production and exhibition of live performing arts and musical shows , the taxpayer who participates in the financing of said productions may apply the deduction, provided that the following requirements are met:

1. That the taxpayer has obtained a certificate to this effect, under the terms established by Ministerial Order , by the National Institute of Performing Arts and Music, under the terms established as of December 31, 2015, by Order ECD /2836/2015, of December 18 ( BOE of the 30th).

2. That, of the benefits obtained in the development of these activities in the year in which the right to the deduction is generated, the taxpayer allocates at least 50 percent to carrying out activities that give the right to apply the deduction provided for 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.

3. Furthermore, in order for the taxpayer who participates in the financing of production carried out by another taxpayer to be able to apply the deduction, he/she must sign a financing contract with the producer, which must be presented together with the certification of compliance with requirement a) above, in a communication to the Tax Administration , signed by both him/her and the producer, prior to the end of the tax period in which the deduction is generated, under the terms established by regulation.