The obligations established for producers who benefit from the tax incentive for international shootings are already official

07/03/2018

The Law on Corporation Tax in the Article 36 regulates tax incentives for film productions and audiovisual series.

With the approval of the general State budgets for 2018, the wording of article 36.2 is maintained, and establishes the deduction of 20 per cent of the expenses incurred in Spanish territory to the producers registered in the Film Companies Register who are in charge of the execution of a foreign production. This deduction will be realised, provided that the expenses were to be of at least 1 million euros and directly derived from the use of technical industries and other suppliers for the production.

It also maintains the limit of €100,000 per person to the creative staff costs, as long as he/she has the tax residence in Spain or in any Member State of the European Economic Area.

The amount of this deduction may not exceed 3 million euros for each production conducted, and the amount of this deduction, together with the rest of aid received may not exceed 50 per cent of the production cost.

The novelty is established in the obligations that are stipulated for the producers that benefit from this tax incentive:

1st. Including in the credit titles and the advertising of the production a specific reference to have accepted the tax incentive and expressly indicate the specific shooting locations in Spain, as well as the collaboration of the Spanish Government, Regional Governments, Spain Film Commission, and the Film Commissions or Film Offices that have took part.

2nd. Sending the following materials to the Institute of Cinematography and Audiovisual Arts (ICAA) for archiving, classification and management:

  • A copy of the audiovisual production in high quality digital format in the original version and in the versions commercialised in Spain;
  • The synopsis and an updated technical and artistic fact sheet;
  • Promotional graphic material of the production (posters, photographs, etc.);
  • A sufficient number of frames of the subsidised work with the implicit authorisation to use them in the promotion of the territory where it has been shot.

3rd. The beneficiary companies commit to assign their rights of partial reproduction of the audiovisual works and graphic materials delivered for the realisation of activities and the preparation of promotional materials in Spain and abroad for cultural or tourist purposes. These materials may be produced by the State, Regional, Provincial or Local Entities with powers in Culture, Tourism and/or Economy, as well as by the Spain Film Commission and the Film Commissions or Film Offices that have took part.

4th. Reporting to the Institute of Cinematography and Audiovisual Arts (ICAA) for statistical purposes:

  • The start and the end date of the production;
  • The amount of the total expenses of the production carried out in Spain, whether or not will finally be the object of the tax incentive.

Cover photo: © HBO
Interior photos: @Guillermo Navarro @abc / @Malaga FO / @Navarra FC

The obligations established for producers who benefit from the tax incentive for international shootings are already official
The obligations established for producers who benefit from the tax incentive for international shootings are already official
The obligations established for producers who benefit from the tax incentive for international shootings are already official