Contribution
The financier contributes resources to certain costs of an eligible cultural project.
Tax incentives · Culture
Culture that can also be part of your tax planning
The financing of certain cultural projects can provide access to tax deductions for companies and professionals who meet the requirements established by regulations.
At Tandem, we analyse your tax situation and the specific operation to determine if this incentive can fit into your planning.
Each operation requires an individual analysis of quota, project, documentation, deadlines, and risks.
How it works
Financing culture with an associated tax incentive
Article 39.7 of the Spanish Corporate Income Tax Act allows certain taxpayers to finance eligible cultural productions and apply part of the tax deduction generated by the producer, within the legally established requirements and limits.
Deduction
The producer generates the tax incentive and assigns the corresponding portion to the financier, within legal limits.
Tax application
The financier applies the deduction in their tax return when the right arises and they have sufficient tax quota.
The financier acquires no rights over the work. Ownership of the production remains with the producer.
The figures, properly explained
Up to 120 % of the contribution as the maximum deduction
The rules allow the deduction allocated to the financier to reach a maximum of 120 % of the amount contributed.
This means that the gross difference between the deduction obtained and the financing provided may reach 20 % of the contribution.
Maximum deduction on the contribution.
Maximum gross difference before taxes and costs.
The actual outcome depends on the financier's tax position, the costs of the transaction and their capacity to apply the deduction.
The 20 % does not represent a guaranteed annual return, nor the net profit of the transaction.
Profile
Who might this make sense for?
Companies
Corporate Income Taxpayers who have sufficient tax capacity and liquidity to make the contribution.
Self-employed and professionals
Business owners and professionals under direct estimation —normal or simplified— who can apply these incentives in their IRPF.
Paying tax does not automatically mean you can access the incentive.
Before considering a transaction, the following must be analysed, among other matters:
- available tax liability;
- other pending deductions;
- forecast results;
- available liquidity;
- applicable limits.
Eligible projects
Film, audiovisual and live arts
The financing mechanism applies to certain cultural incentives regulated by the Corporate Income Tax Act.
01
Spanish audiovisual productions
Among other projects that meet the corresponding requirements:
- feature films
- cinematographic short films
- fiction series
- animation
- documentaries
02
Performing arts and music
Certain live performance production and exhibition activities, such as:
- theatre
- dance
- concerts
- other formats that meet legal requirements
The existence of a cultural production does not in itself mean that a deduction is available. Certification and tax-eligible costs are decisive.
Illustrative simulation
An example to understand the mechanism
Contribution10.000 €
This example is purely illustrative. It does not represent a standard return.
Contribution made10.000 €
Deduction applied12.000 €
Gross difference2.000 €
The 120% represents the theoretical maximum deduction limit provided for in Article 39.7 of the Corporate Income Tax Act. The 25% rate must not be applied automatically to this amount.
The actual outcome depends on the tax rate, the available tax liability, the deduction ultimately generated, the costs of the transaction and the taxpayer's circumstances.
Assumptions used:
- the deduction being fully applicable;
- a EUR 2,000 return included in the tax base;
- corporate income tax at 25 %;
- no costs.
Before formalising
We do not analyse the deduction alone. We analyse the transaction as a whole.
Project and certifications
The eligibility of the project and the documentation required to generate the deduction.
Tax capacity
The available quota of the financier and the possible concurrence with other incentives.
Deduction amount
The eligible costs, grants, generated deduction, and corresponding allocation.
Contract
The obligations of the parties and the foreseen consequences if the transaction is not executed as planned.
Traceability
Contributions, communications, certificates and accounting and tax documentation.
Coverage
When there are insurances or guarantees, their limits, exclusions, duration, and the solvency of the provider must be analysed.
Rigour and transparency
An informed decision also requires reviewing the risks
The benefit does not depend directly on box-office results, but it does depend on there being an eligible project and on the applicable requirements being met.
Project and certificates
A cancellation, a rejected cost, or a late certificate can reduce or delay the deduction.
Tax capacity
A lower quota or concurrence with other incentives can defer savings and prolong recovery.
Contract and solvency
It must be reviewed what happens if the operation cannot be carried out under the foreseen terms.
Coverage
If there are insurances or guarantees, exclusions, limits, duration, and the guarantor's solvency must be reviewed.
Planning
Timing matters
These transactions require advance planning.
Financing
The contribution must be coordinated with the eligible costs and the project timeline.
Certifications
The required certificates must be obtained according to the type of production.
Communication
The contract and corresponding documentation must be communicated to the Tax Agency within the applicable deadlines.
Declaration
The deduction applies to the corresponding Corporate Income Tax or Personal Income Tax, subject to the available quota.
Where the financial year matches the calendar year, the notification must be filed before the close of the year giving rise to the deduction.
Application limits
The available deduction does not depend solely on how much you wish to contribute
General combined limit on application against the reference tax liability.
The limit may be raised when the cultural deduction attributed to the financier reaches the legally established thresholds.
General period indicated for certain outstanding amounts, subject to the applicable requirements.
Under personal income tax (IRPF), the calculation is based on its own tax liabilities and limits.
Estimación individual
Estima la aplicación de la deducción en tu ejercicio
Introduce tu cuota íntegra ajustada y la aportación prevista para obtener una estimación orientativa de la deducción aplicable y de los importes que podrían quedar pendientes.
Paso 1
Tu beneficio previsto
Utilizamos tu beneficio como aproximación inicial. Los ajustes fiscales y las pérdidas pendientes pueden modificar el cálculo
Paso 2
Tu Impuesto sobre Sociedades
Los tipos reducidos exigen cumplir las condiciones del régimen seleccionado conforme al artículo 29 y a la disposición transitoria 44 de la LIS. La escala de microempresas se aplica por tramos y se prorratea en ejercicios inferiores al año.
Cuota estimada25.000,00 €
Paso 3
Tu aportación y resultado
Partimos de la aportación sugerida para que la deducción pueda aplicarse íntegramente en el ejercicio. Puedes modificarla.
Aplicación estimada en este ejercicio
Simulación suponiendo deducción suficiente para alcanzar el 120 %
Antes de costes y ajustes fiscales. Puede depender de la aplicación en varios ejercicios
Estimación orientativa sujeta al proyecto, los requisitos legales y la situación fiscal de la empresa
Cálculo automático limitado al régimen común cubierto. La tributación mínima y los regímenes especiales requieren un cálculo específico.
Structures
Not all structures work the same way
The Article 39.7 financing contract and participation through an Economic Interest Grouping (AIE) are different structures and require separate analysis.
Article 39.7 contract
- Participation
- Contractual financier
- Mechanism
- Deduction allocated
- Maximum
- Up to 1.20 × contribution
- Review
- Project, tax liability, deadlines and contract
AIE
- Participation
- Member of the grouping
- Mechanism
- Tax allocation under its special regime
- Review
- Beyond the transaction itself, the corporate structure, debts, entry and exit must also be analysed.
Economic Interest Groupings (AIE) require a specific study.
Our support
Our work begins before the contribution is made
Tax diagnosis
We analyse the forecast of results, estimated quota, existing deductions and fiscal capacity.
Transaction Assessment
We review the project and the available documentation, resorting to specialists when necessary.
Individual simulation
We estimate the amount of the contribution, expected deduction, tax impact, estimated net result, costs, timeline, and alternative scenarios.
Application and monitoring
We coordinate deadlines and accounting and tax reflection according to the scope of the contracted service.
Individual study
Could this incentive fit your tax situation?
The answer depends on your tax liability, forecast results, liquidity and the specific features of the transaction.
We can run an initial simulation to assess whether it makes sense to continue with the analysis.
Request an individual studyTo get started we will need:
- the latest corporate income tax or personal income tax return;
- forecast results for the financial year;
- information on pending deductions;
- available liquidity.