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Practical Manual of Companies 2021.

Scope of application and requirements

They have the right to apply this deduction for expenses incurred in Spanish territory, the producers registered in the Administrative Registry of Cinematographic Companies of the Institute of Cinematography and of the Audiovisual Arts that are responsible for the execution of a foreign production of cinematographic feature films or audiovisual works that allow the preparation of a prior physical support to its serial industrial production.

With effect for tax periods beginning on or after January 1, 2021 , in order to apply this deduction, the following requirements must be met:

  1. That the production obtains the corresponding certificate that accredits the cultural character in relation to its content or its connection with the Spanish or European cultural reality, issued by the Institute of Cinematography and of Audiovisual Arts , or by the corresponding body of the Autonomous Community with jurisdiction in the matter. This requirement will not be required to apply the deduction to the producer who is in charge of the execution of visual effects services.

  2. That a specific reference to having taken advantage of the tax incentive be incorporated into the final credits titles of the production; the collaboration, where appropriate, of the Government of Spain, the Autonomous Communities, the Film Commissions or the Film Offices that have directly intervened in the filming or other production processes developed in Spain, as well as, where appropriate, the specific filming locations in Spain and, in the case of animated audiovisual works, the place where the studio that has been entrusted with the production service is located.

  3. That the rights holders authorize the use of the title of the work and of graphic and audiovisual press material that expressly includes the specific locations of the filming or any other production process carried out in Spain, for the carrying out of activities and the preparation of promotional materials in Spain and abroad for cultural or tourist purposes, which may be carried out by state, regional or local entities with powers in matters of culture, tourism and economy, as well as as well as by the Film Commissions or Film Offices that have intervened in the filming or production.

Keep in mind:

The forty-second transitional provision of the LIS establishes that the requirements referred to in sections b) and c) above will not be enforceable in the case of foreign productions of feature films and audiovisual works in respect of which the contract for the execution of the production had been signed prior to the date of entry into force (July 11, 2021) of the Law on measures to prevent and combat tax fraud, transposing Council Directive ( EU ) 2016/1164, of July 12 of 2016.