Base, percentages and maximum amount of the deduction
1. Deduction base
The basis of the deduction will be constituted by the direct artistic, technical and promotional costs incurred in said activities.
The base of this deduction will be reduced by the amount of the subsidies received to finance the expenses that generate the right to it.
2. Applicable percentages
The applicable deduction percentage will be 20 percent on the expenses incurred in the tax period in the production and exhibition of live performing arts and musical shows.
3. Maximum deduction amount
The deduction generated in each tax period may not exceed the amount of 500,000 euros per taxpayer .
The amount of the deduction, together with the subsidies received by the taxpayer to finance the expenses that generate the right to it, may not exceed 80 percent of said expenses .
In cases in which the taxpayer who participates in the financing of productions carried out by another taxpayer applies the deduction, it may not be higher than the corresponding amount, in terms of quota, resulting from multiply by 1.20 the amount of the amounts disbursed by him for the financing of said production. The excess of this amount may be applied by the producer.
The amount of this deduction together with the rest of those provided for in Chapter IV of Title VI of the LIS , applied in the tax period, may not jointly exceed 25 percent percent of the full quota reduced by deductions to avoid international double taxation and bonuses. However, the limit will be raised to 50 percent when the amount of the deductions provided for in articles 35 and 36 of the LIS, which corresponds to expenses and investments made in the tax period itself , exceeds 10 percent of the full quota, reduced by deductions to avoid international double taxation and bonuses.