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Practical Manual of Companies 2022.

Scope of application and requirements

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

  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 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 the production and exhibition of live performances of performing and musical arts performed by other taxpayers to apply the deduction, they must sign with the producer one or more financing contracts, which may be signed at any stage of production , which must be presented together with the certification of compliance with requirement a) above, in a communication to the Tax Administration, signed both by him and by the producer, prior to the end of the tax period in which the latter has the right to apply the deduction.