Deduction for investments in live performances of performing and musical arts (art. 36.3 LIS)

a. Scope

The producer who incurs expenses in the production and exhibition of live performing arts and musical shows has the right to apply this deduction.

With effect for tax periods beginning on or after January 1, 2021, the taxpayer who participates in the financing of said productions also has the right to apply this deduction.

b. Requirements

That the taxpayer has obtained a certificate for this purpose, issued by the National Institute of Performing Arts and Music, under the terms established in Order ECD /2836/2015, of December 18 ( BOE of 30).
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.

c. 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.

d. 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.

e. 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 .

Remember:

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 of the full tax reduced in 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.

f. Tax period in which the deduction is applied

The producer will apply the deduction generated in each tax period for the expenses incurred in the production and exhibition of live performing arts and musical shows, provided that the producer has obtained the certificate from the National Institute of Performing Arts and Music required.

The amounts not deducted in the tax period may be applied in the settlements of the tax periods that conclude within the 15 immediate and successive years .