Base, percentages and maximum amount of the deduction

1. Deduction base

The basis of the deduction will be constituted by the direct costs of an artistic, technical and promotional nature 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 .

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.

In cases where the taxpayer participating in the financing of the production and exhibition of live performing arts and musical performances performed by other taxpayers apply the deduction, the maximum amount of the deduction generated by the producer that the producer may apply will be the result of multiplying by 1.20 the amount of the amounts that the latter has contributed to finance the production costs or the expenses for obtaining copies, advertising and promotion at the expense of the producer. The excess deduction may be applied by the producer who has generated the right to it.

The amount of the deduction applied by the taxpayer who participates in the financing of said productions must be taken into account for the purposes of applying the joint limit of 25 percent established in article 39.1 of the LIS. However, said limit will be raised to 50 percent when the amount of the deduction provided for in sections 1 and 3 of article 36 of the LIS, which corresponds to the taxpayer participating in the financing , is equal to or greater than 25 percent of its full quota reduced by deductions to avoid international double taxation and bonuses.