Scope of application and requirements
With effect for tax periods beginning on or after January 1, 2021, in addition to the producer who makes investments in Spanish productions of feature films and short films and audiovisual series of fiction, animation or documentaries, which allow the creation of a physical medium prior to their serial industrial production, the taxpayer who participates in the financing of said productions is allowed to apply the deduction for investments in Spanish cinematographic productions, provided that the following requirements are met:
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That the production obtains the corresponding certificate of nationality and the certificate that accredits the cultural character in relation to its content , its connection with the Spanish cultural reality or its contribution to the enrichment of the cultural diversity of the cinematographic works that are exhibited in Spain, issued by the Institute of Cinematography and Audiovisual Arts , or by the corresponding body of the Autonomous Community with competence in the matter.
With effect for tax periods beginning on or after 1 January 2021, these certificates will be binding on the tax authority responsible for the accreditation and application of the above tax incentives and identification of the beneficiary producer, regardless of the time of issue thereof.
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That a new and perfect copy of the production be delivered to the Spanish Film Library or the film library officially recognized by the respective Autonomous Community.
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Furthermore, in order for the taxpayer who participates in the financing of Spanish productions of feature films, short films, audiovisual series of fiction, animation or documentary made 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 production, which must be submitted together with the certification of compliance with the requirements set out in letters a) and b) 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.
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Finally, it is required that the assets must remain in operation for 5 years for real estate, 3 years for movable property. or during the useful life if it is less. With effect for tax periods beginning on or after January 1, 2021, in the case of film productions and audiovisual series, this requirement will be deemed to be met to the extent that the production company maintains the same percentage of ownership of the work for the period of 3 years, without prejudice to its right to market all or part of the exploitation rights derived therefrom to one or more third parties.