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V0065-17 17 January 2017 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · deducción por producción audiovisual

Various production costs can be included in the deduction base for foreign audiovisual productions

An animation production company asks whether personnel, technical and material expenses can count towards the deduction base for foreign productions. The DGT confirms that most of the listed expenses are deductible, provided they are incurred in Spain and meet legal requirements.

The question raised

Question raised 1. Whether the expenses listed above may form part of the deduction base provided for in Article 36.2 of Law 27/2014.

The DGT's ruling

Expenses for management, production, photography, visual development, pre-production, dialogue, soundtrack, directing, post-production, as well as rentals, supplies, hardware, software, laboratory, insurance, subsistence, and transport within Spanish territory, form part of the deduction base. Excluded are administrative staff expenses, transport expenses outside of Spain, and the depreciation of assets assigned to executive production that are not expenses incurred within Spanish territory. Creative personnel, pursuant to the Film Law, are also deductible with a limit of 50,000 euros per person if they have tax residence in Spain or the EEA. The deduction may be applied to expenses incurred during the tax period justified by production certifications.

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