Issues to consider when settling the tax in 2023
We inform you of the main developments for the 2023 Corporate Tax Campaign.
Deduction for investment in cinematographic production
With effect for tax periods beginning on or after 1 January 2023, Law 38/2022, of 27 December, modifies sections 1 and 2 of article 36 of the LIS to increase the maximum limits of deductions for investments in Spanish and foreign film productions and audiovisual series:
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Spanish film productions
The amount of the deduction for production carried out in Spanish territory is raised from to 20 million euros. Likewise, in the case of audiovisual series it is specified that the deduction is determined per episode, with the limit being 10 million euros for each episode produced .
In the Canary Islands, the amount of this deduction may not exceed 36 million euros , when it concerns productions made in the Canary Islands . In the case of audiovisual series , the deduction will be determined per episode and the maximum deduction amount will be 18 million euros .
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Foreign film productions
The amount of the deduction for production carried out in Spanish territory is raised from to 20 million euros. Likewise, in the case of audiovisual series it is specified that the deduction is determined per episode, with the limit being 10 million euros for each episode produced . In addition, the limit established to determine the basis of this deduction is for creative personnel expenses .
In the Canary Islands, the amount of this deduction may not exceed 36 million euros , when it concerns expenses incurred in the Canary Islands . In the case of audiovisual series , the deduction will be determined per episode and the maximum deduction amount will be 18 million euros.
Keep in mind:
Article 36.1 of the LIS requires that at least half of the expenses that make up the basis for the deduction be incurred in Spanish territory. According to the DGT's criteria, for the purposes of complying with the requirement of territorialisation of expenditure, expenses will be deemed to have been incurred in Spanish territory when the services that give rise to said expenses are actually provided in Spain, or in the case of deliveries of goods when they are carried out in said territory. All of this is independent of the nationality of the supplier who supplies the goods or provides the services.