Scope of application and requirements

With effect for tax periods beginning on or after January 1, 2021, in addition to the producer who incurs expenses in the production and exhibition of live performing and musical arts shows, the taxpayer who participates in the financing of said productions is allowed to apply the deduction, 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 December 31, 2015, by Order ECD /2836/2015, of December 18 ( BOE of the 30th).

2. That, of the benefits obtained in the development of these activities in the year in which the right to the deduction is generated, the taxpayer allocates at least 50 percent to carrying out activities that give the right 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. Furthermore, in order for the taxpayer who participates in the financing of the production and exhibition of live performing arts and musical shows carried out by other taxpayers to be able to apply the deduction, he/she must sign with the producer one or more financing contracts, which may be signed at any stage of the production , which must be presented together with the certification of compliance with requirement a) above, in a communication to the Tax Administration, signed by both him/her and the producer, prior to the end of the tax period in which the latter is entitled to apply the deduction.