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Practical Handbook for Companies 2021

Scope and requirements

With effect for tax periods beginning on or after 1 January 2021, in addition to the producer who spends on the production and exhibition of live performances of performing arts and music, the deduction may be applied by the taxpayer who participates in the financing of such productions, 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 31 December 2015, by Order ECD/2836/2015, of 18 December (BOE of 30 December).

  2. That, of the profits obtained in the development of these activities in the financial year in which the right to the deduction is generated, the taxpayer allocates at least 50% to the performance of activities that give entitlement to the application of 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. In addition, in order for the taxpayer who participates in the financing of the production carried out by another taxpayer to be able to apply the deduction, he 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 authorities, signed by both him and the producer, prior to the end of the tax period in which the deduction is generated, under the terms established by regulations.