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V1602-20 26 May 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · deducción por producción audiovisual

Technical and creative staff costs can be included in audiovisual deduction if borne by Spanish producer

A Spanish producer asks whether costs for technical and creative personnel hired by a foreign company to produce a series in Spain can be included in the deduction base. The DGT responds that such costs are eligible if they relate to the use of technical industries or creative personnel and are ultimately borne by the Spanish producer.

The question raised

Question raised: Whether the described personnel expenses can be included in the deduction base pursuant to the provisions of Article 36. 2. 2º of the LIS.

The DGT's ruling

Technical personnel expenses may form part of the deduction base if they are considered the use of technical industries and other providers provided in Spanish territory. Creative personnel expenses are eligible if they meet the definition of the Film Law and have tax residence in Spain or the European Economic Area. In both cases, the expenses must be ultimately borne by the consulting entity and incurred in Spanish territory. If the expenses are borne by the foreign entity, they cannot be included in the deduction base.

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