8.5 Deduction for foreign film productions (Article 36.2 LIS)

The amount of the deduction for foreign film productions that apply in the tax period to be declared will be recorded in code [01039], "Deductions for foreign film productions (art. 36.2 LIS )".

Requirements

Producers registered in the Registry of Film Companies of the Ministry of Culture and Sport who are in charge of the execution of a foreign production of feature films or audiovisual works that allow the creation of a physical support prior to their serial industrial production.

The requirements and obligations for being entitled to this deduction may be established by regulation.

Deduction base

The basis of assessment will include the following expenses made in Spanish territory directly relating to the production:

• Expenses for creative staff, provided that they have tax residence in Spain or in a Member State of the European Economic Area, with a limit of 100,000 euros (50,000 euros until 31-12-2016) per person.

• Expenses deriving from the use of technical industries and other suppliers.

Amount of deduction

Producers may apply a deduction of 20 percent (15 percent until 31-12-2016) of the total amount of expenses incurred in Spanish territory, provided that the expenses incurred in Spanish territory are at least 1 million euros.

The amount of this deduction may not exceed 3 million euros (2.5 million euros until 31-12-2016), for each production carried out.

Limitation of deduction

This deduction is excluded from the limit referred to in the last paragraph of article 39.1 of the LIS. Therefore, this deduction will not be computed for the purposes of calculating said limit.

The amount of this deduction, together with the rest of the aid received by the taxpayer, may not exceed 50 percent of the cost of production.