News published in INFORMA 2021

New features introduced in the INFORMA programme during OCTOBER

The costs derived from implementing various risk prevention measures, which involves assuming a series of labour and infrastructure costs and the acquisition of materials will not be able to form part of the deduction base provided for in article 36,2 of the LIS in the measure required by this provision requires that the expenses are directly related to production.

With effect for the tax periods beginning from 1 January 2021, the amount of the deduction for expenses carried out in the production and exhibition of live performing arts and music shows, as referred to in Article 3 (36) of the Act 27/2014, on Corporation Tax, cannot be higher than the result of an increase of 80% the maximum amount as referred to in this article in the case of expenses incurred in the Canary Islands.

With effect from 1 January 2021, Act 14/2021 of 11 October modifies Article 2 of Act 49/2002 of 23 December, in relation to the fact that companies are considered non-profit entities.

For the tax periods beginning in 2020, the producers registered in the Administrative Register of Cinematographic Companies of the Film Institute and the Audio-visual Arts, which are responsible for the execution of a foreign production of cinematographic or audiovisual productions , carried out in the Canary Islands, which allow the preparation of a physical support prior to its industrial production, will be entitled to the expenses incurred in the Canary Islands have a deduction of 54% with respect to the first million of the deduction base and 45% on the excess of that amount. The amount of this deduction cannot be greater than 12.4 million euros for each production carried out in the Canary Islands. For the tax periods beginning in 2021, this amount is increased to €18 million.

For the tax periods beginning in 2020, investments in Spanish productions of film and short films and audiovisual fiction, animation or documentary series, made in the Canary Islands, that allow the creation of a physical medium prior to its industrial production , they will give the producer a deduction of 54% with respect to the first million of the deduction base and 45% on the excess of that amount. The amount of this deduction cannot be greater than 12.4 million euros for each production carried out in the Canary Islands. For the tax periods beginning in 2021, this amount is increased to €18 million.

A provision that aims to cover the risk arising from possible future compensation in the event of dismissal of workers is not tax deductible.

The reduction of the taxable base corresponding to the capital reserve allocation, when there are amounts pending application from previous periods together with with the one generated in the period, the taxpayer may apply them in the order they want, as there is nothing established that one or more must apply first.