Scope of application and requirements

With effect for tax periods beginning on or after January 1, 2021 , in addition to producer is allowed to carry out expenses in the production and exhibition of live performances of performing and musical arts , the deduction can be applied by the taxpayer who participates in the financing of said productions, provided that meet the following requirements:

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

2. That, of the profits obtained in the development of these activities in the year in which the right to deduction is generated, the taxpayer allocates at least 50 percent to the performance of activities that give the right to the deduction. 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. Furthermore, so that the taxpayer who participates in the financing of the production carried out by another taxpayer can apply the deduction, he must sign a financing contract with the producer that must be presented together with the certification of the compliance with requirement a) above, in a communication to the Tax Administration , signed by both him and the producer, prior to the end of the tax period in which the deduction is generated, in the terms that are established by regulation.