Deduction for investments in production and exhibition of live performing arts and musical shows

Regulation: Article 36.3 LIS and 94 Law 20/1991 and DA 14 Law 19/1994

To apply the deduction for expenses incurred in the Canary Islands in the production and exhibition of live performing arts and musical shows, entities must meet the general requirements established for these deductions in article 36.3 of the LIS .

a. Percentages

The deduction percentages established in article 36.3 of the LIS will increase according to the provisions of article 94.1 a) of Law 20/1991, therefore the rate of 40 percent will be applied.

b. Limits

The limits applicable to this deduction will increase in accordance with the provisions of article 94.1.b) of Law 20/1991 , therefore will be subject to the joint limit of 60/90 or 70/100 (La Palma, La Gomera and El Hierro) percent.

In addition, the Fourteenth Additional Provision of Law 19/1994 establishes, with effect for tax periods beginning on or after January 1, 2021, a specific limit for this deduction, indicating that its amount may not be higher than the result of increasing by 80 percent the maximum amount included in article 36.3 of the LIS, when applicable of expenses incurred in the Canary Islands. Therefore, the maximum amount of this deduction will be 900,000 euros (500,000 euros x 1.8).