C. Deduction for production of certain live shows (art. 36.3 LIS)
Percentage of deduction
Expenses incurred in the production and exhibition of live performing arts and musical shows will be subject to a 20 percent deduction.
Deduction base
The base of the deduction will consist in the direct costs of an artistic, technical and promotional nature, incurred in such activities.
Maximum deduction amount
The deduction generated in each tax period cannot exceed the amount of 500,000 euros per taxpayer.
In short:
| Percentage of deduction | Maximum amount | Deduction base | ||
|---|---|---|---|---|
| 20% | €500,000 Without exceeding 80% of the expenses |
Direct costs of an artistic, technical and promotional nature incurred. | ||
Requirements
The requirements necessary for the application of the deduction are:
- The taxpayer must have a certificate to prove this, under the terms established by Ministerial Order, issued by the National Institute of Performing Arts and Music.
- That, of the benefits obtained from the development of these activities in the year in which the right to the deduction is generated, the taxpayer allocates at least 50% to carrying out activities that give the right to apply the deduction provided for in this section.
The time period for meeting this obligation is from the start of the fiscal year in which the aforementioned profits are acquired, and 4 years following the close of the same fiscal year.
The base of this deduction will be reduced by the amount of the subsidies received to fund such expenses.
Limit
The amount of the deduction, together with any subsidies received by the taxpayer, may not exceed 80% of said expenses.