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V4770-16 10 November 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · agrupación de interés económico

AIE partners may claim film production tax credits through the imputation of tax bases

An Economic Interest Grouping (AIE) in the Canary Islands has requested clarification on whether it can apply the AIE tax regime and impute results and tax credit bases to its partners. The Directorate General for Taxes (DGT) has ruled that if the AIE acts as a producer, the tax credit bases are imputed to Spanish resident partners according to their shareholding.

The question raised

1. Whether the AIE will apply the tax regime for Spanish economic interest groupings and, consequently, impute to its partners the tax results, the bases of deductions, tax reliefs, and withholdings generated by the entity.

The DGT's ruling

The AIE may apply the special regime of Article 43 of the LIS if it carries out the activities of its corporate purpose, even if its partners do not carry out related activities. The bases of the deductions are imputed to the partners resident in Spain in proportion to their economic rights. If the AIE is considered a producer and the work is carried out in the Canary Islands, the Canary partners will apply increased deduction percentages and higher tax credit limits. The maximum amount of the deduction for productions in the Canary Islands is 5.4 million euros.

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