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V3433-15 11 November 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · deducción por producciones audiovisuales

Details of deductible expenses in foreign audiovisual productions in Spain

A film commissioners' association asks which production costs can be included in the deduction for foreign audiovisual productions. The DGT specifies which creative and technical industry expenses are deductible and outlines the conditions for their application.

The question raised

Question raised 1. Whether the expenses listed in the expository part may form part of the deduction base under Article 36.2 of the LIS.

The DGT's ruling

The deduction base includes creative personnel costs (with a limit of €50,000 per person) and technical industry costs directly related to production in Spain. This includes music rights, technical services, set design, animation, filming, transport, post-production, and insurance. General expenses (office, administration, consultancy) and trailer advertising costs are not deductible. In the Canary Islands, the deduction rate is 35% with a limit of 4.5 million euros.

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