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V3226-16 11 July 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · producción ejecutiva

Deduction available for full season of foreign series produced in Spain

A Spanish producer asked whether it could claim the deduction under article 36.2 of the LIS for the executive production of a pilot and the subsequent season of a foreign series. The DGT replied that the pilot constitutes a separate production and that the deduction should be applied on the full season as the production.

The question raised

1. Whether the taxpayer will be entitled to apply the deduction provided for in Article 36.2 of the LIS for the provision of executive production services for the pilot, in relation to the eligible expenses incurred in Spanish territory.

The DGT's ruling

A pilot is considered a production distinct from the series if it is an autonomous production intended to present the concept and explore its viability. To apply the deduction under Article 36.2 of the LIS, production must be understood as the complete season, provided it is contracted independently of other seasons. The basis for the deduction shall be the eligible expenses incurred in Spanish territory corresponding to said season.

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