Spain has published Decree-Law 34/2020 of 17 November 2020 in the Official Gazette, which includes various tax measures. Two of the main measures concern VAT, including:
Another important measure concerns the tax deduction (rebate) incentives for film productions with effect for tax periods beginning on 1 January 2020. This includes that producers in Spain in charge of foreign productions of films or audiovisual works are entitled to a deduction for expenses incurred in Spain directly related to the production. The deduction base includes:
The deduction amount is equal to 30% with respect to the first million of the deduction base and 25% on the excess, where the expenses incurred in Spain amount to at least EUR 1 million, although for animation productions, the minimum expense amount is EUR 200,000. The maximum deduction allowed is EUR 10 million and the amount of deduction together with other aid received is limited to 50% of the production cost. However, where the producer is in charge of the execution of visual effects services and the expenses incurred in Spain are less than EUR 1 million, a deduction of 30% is provided.
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