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Practical Manual for Companies 2022.

Deductions for foreign film productions in the Canary Islands (art. 36.2 LIS and DA 14th Ley 19/1994)

Entities that meet the general requirements established in article 36.2 of the LIS , must enter in box [02314] "Deductions for foreign film productions in the Canary Islands (art. 36.2 LIS and DA 14 Law 19/1994)" on page 14 of form 200, the amount of the deduction for expenses incurred in Spanish territory for foreign productions of feature films or audiovisual works, when the expenses are incurred in the Canary Islands. The amount entered in this box will be the result of completing the breakdown table on page 18 bis of form 200 explained below.

Completion of the table "Deductions for foreign film productions in the Canary Islands (art. 36.2 LIS and DA 14 Law 19/1994)" (page 18 bis of form 200)

Taxpayers who apply the deduction for investments in foreign productions of feature films or audiovisual works that allow the creation of a physical support prior to their serial industrial production, carried out in the Canary Islands, must complete this breakdown table in the manner detailed below:

  • In column "Pending/generated deduction" the amounts of the deduction generated both in the current tax period ( 2022 ) and in a period prior to the current one ( 2015 to 2021 ) will be recorded in the corresponding boxes, and which are pending application at the beginning of the tax period that is the subject of the declaration.

  • In column "Applied in this settlement" the part (or the totality, if applicable) of the amounts recorded in the previous column "Deduction generated" relating to the deduction for foreign film productions made in the Canary Islands, which are applied in the settlement corresponding to the period subject to settlement, will be recorded.

    Keep in mind:

    In box [02314] the total amounts entered in the column "Applied in this settlement" will be recorded, which must be transferred to box [02314] on page 14 of form 200 regarding the settlement of the Tax.

  • In column "Amount paid due to insufficient quota" the part of the amounts recorded in the previous column "Applied in this settlement" will be recorded for which, due to insufficient quota, the taxpayer requests payment from the Tax Administration in the terms established in article 39.3 of the LIS.

    In the event that due to insufficient quota in the application of this deduction its payment is requested from the Tax Authority in the terms provided for in article 39.3 of the LIS, said request must be made following the procedure detailed in the section "Payment of deductions for foreign film productions in the Canary Islands (art. 39.3 LIS and DA 14 Law 19/1994)" of this Chapter 6 .

    Keep in mind:

    In box [01319] the total amounts entered in the column "Amount paid due to insufficient quota" will be recorded, which must be transferred to box [01319] on page 14 bis of form 200.

  • In column "Pending application in future periods" the positive difference between the amount of deductions pending at the beginning of the tax period or generated in said period in the column "Pending/generated deduction" and the amounts recorded in the columns "Applied in this settlement" and "Amount paid due to insufficient quota" will be recorded. This amount will remain pending application in future tax periods, unless the tax period being declared is the last one in which the corresponding deduction can be applied, in which case the outstanding deduction balance would be lost.

You can consult the limits and specialties of this deduction in Chapter 12 of this Practical Manual.