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V4231-16 ·3 October 2016 ·consulta-vinculante Medium impact
Tax

Production costs for deduction limits include advertising and promotion expenses, but not distribution costs

A query was raised regarding whether distribution and promotion expenses should be included when applying the 50% production cost limit for film production tax credits (LIS). The DGT ruled that advertising and promotion expenses are included subject to certain limits, whereas distribution expenses are not.

In 6 key points

How it affects those involved

This ruling clarifies the scope of deductible production costs for film tax credits, specifically excluding distribution costs while allowing advertising and promotion expenses under specific conditions.

Lifecycle

2016-10-03PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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