Deduction for investments in Spanish cinematographic productions

Regulation: Articles 36.1 LIS and 94 Law 20/1991 and DA 14 Law 19/1994

To apply the deduction for investments in Spanish productions of feature films and audiovisual series of fiction, animation or documentaries, which allow the creation of a physical support prior to their serial industrial production carried out in the Canary Islands, entities must comply with the general requirements established for these deductions in article 36.1 of the LIS .

a. Percentages

The deduction percentages established in article 36.1 of the LIS will be increased according to the provisions of article 94.1 a) of Law 20/1991. For these purposes, the following percentages will apply:

• The 54 percent of the first million of the deduction base (the greater of: 30% x 1.8 = 54% or 30% + 20% = 50%). This 54 per cent may be applied provided that the aid intensity does not exceed 50 per cent of the eligible costs , as laid down in Article 54 of Commission Regulation ( EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.

• 45 percent on the excess of said amount (the greater of 25% x 1.8 = 45% or 25% + 20% = 45%)

b. Limits

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

c. Maximum deduction amount

The Fourteenth Additional Provision of Law 19/1994 establishes that the maximum amount of this deduction may not be greater than the result of increasing by 80 percent the maximum amount specified in article 36.1 of the LIS, when it concerns productions made in the Canary Islands. Therefore, for tax periods starting on or after 1 January 2023, the maximum deduction amount will be million (€20 million x 1.8).

In the case of audiovisual series , the deduction will be determined per episode and the maximum deduction amount will be 18 million euros (10 million x 1.8) for each episode produced.

d. Filling in form 200

Producers who are entitled to apply the deduction for Spanish film productions made in the Canary Islands, in addition to the table "Deductions for investment in the Canary Islands with increased limits" on page 16 bis of form 200, must complete the section "Tax regime of the Canary Islands" of the table “Investments in film productions or audiovisual series” on page 21 of said model as detailed below:

• Film productions (except audiovisual series)

  Producers must enter in this box the number of productions that have generated the right to practice the deduction for foreign film productions in the tax period subject to the declaration.

• Audiovisual series

  In the case of audiovisual series, the deduction is determined per episode, so producers must enter in the boxes created for this purpose the number of series and episodes that generate the right to apply this deduction in the tax period covered by the declaration.

  When completing box "number of episodes" it must be taken into account that the maximum deduction limit per episode provided for in article 36.1 of the LIS must be examined and complied with in each episode, to the extent that the deduction limit must be determined by episode, without the aforementioned limit being able to be offset between episodes.