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V1910-18 28 June 2018 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · agrupación de interés económico

Live performance tax deduction applicable to an Economic Interest Group (AIE) if Art. 36.3 LIS requirements are met

An Economic Interest Group (AIE) has enquired whether the expenses incurred by a music festival allow for the application of the corporate tax deduction. The Directorate General for Taxes (DGT) has ruled that this is possible, provided that all legal requirements are satisfied and direct costs are correctly identified.

The question raised

1. Whether the expenses incurred in the production and exhibition of the Festival by the AIE will give rise to the application of the deduction under Article 36.3 of the LIS.

The DGT's ruling

The AIE may apply the 20% deduction if it meets the requirements of Article 36.3 of the LIS, including obtaining the certificate from the INAEM and the reinvestment of profits. The deduction base includes direct artistic, technical, and promotional costs, such as personnel or intermediation expenses, but excludes structural, insurance, security, or medical service expenses. Expenses rebilled by a partner may be included if the AIE bears the costs. The deduction bases shall be imputed to partners resident in Spain according to their participation in the bylaws.

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