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V1926-18 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 AIE if LIS requirements are met

An Economic Interest Grouping (AIE) has enquired whether it can apply a 20% tax deduction for the production and exhibition costs of a music festival. The Directorate General for Taxes (DGT) has ruled that this is possible, provided that all legal requirements are satisfied and the permitted 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 deduction under Article 36.3 of the LIS if it meets the certification and profit reinvestment requirements. The deduction base shall include direct artistic, technical, and promotional costs, such as personnel or intermediation expenses, but shall exclude structural, insurance, security, or medical service expenses. Expenses rebilled by a partner may be included if the AIE is the party bearing the costs. Finally, the deduction bases shall be allocated to partners resident in Spain according to their participation as set forth in the bylaws.

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