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V1924-18 29 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 queried whether the production and exhibition costs of a music festival allow for the application of the tax deduction under Article 36.3 of the Corporate Income Tax Act (LIS). The Directorate General for Taxes (DGT) responds that this is possible provided that legal requirements are met and direct costs are correctly identified.

The question raised

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

The DGT's ruling

The CMO may apply the 20% deduction if it meets the certification and profit reinvestment requirements. The deduction base includes direct artistic, technical, and promotional costs, such as personnel, intermediation, and certain artist expenses. Structural costs, insurance, security, medical services, or catering expenses are not included. Expenses rebilled by a partner may form part of the base if the CMO bears the costs.

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