TAX REBATE SHOOTING IN SPAIN

TAX INCENTIVES FOR FILMING IN SPAIN

Tax Incentives for filming in Spain. Advantages and opportunities for the audiovisual producers e investorsThat make this country a unique territory y extraordinary for all types of audiovisual works, whether they are motion pictures, , audiovisual series, , documentaries, , advertising, , events.. Because of the possibilities it offers, Shootig in Spain Has become a source of exceptional resources of the highest level for the audiovisual industry, and we can establish several categories that accredit this excellence: tax incentives; locations, infrastructure, climate and gastronomy; studios and sets; and production professionals. Therefore, we can conclude that filming in Spain is the best place to make all kinds of audiovisual productions.

WHAT TAX INCENTIVES ARE OFFERED FOR FILMING IN SPAIN ("TAX CREDIT" AND "TAX REBATE")?

The Spanish state offers investors in film productions and audiovisual series. Exceptional tax deductions (Tax Rebate) that apply to most of the Autonomous Communities of Spain with the exception of the Canary Islands, Navarre and the Basque Country

-of which we will describe their particularly favourable tax deduction regime - with two possible beneficiaries of such deductions depending on whether they are spanish productions ("Tax Credit"), or foreign productions ("Tax Rebate"); in both cases the production must allow the production of a physical support prior to its serial industrial production, in order to obtain the tax deduction.

Investments in Spanish productions

The investments on spanish productions of fiction, animated or documentary feature films and audiovisual series shall entitle the producer to a maximum tax credit of 30 % in respect of the first million euros the basis of the deduction, and 25 % of the excess of that amount. The total amount of the deduction may not exceed EUR 20 million for each production, and with the essential requirement that 50 % of the basis for the deduction must correspond to expenditure incurred in Spanish territory. For audiovisual series the maximum deduction limit is 10.000.000 of euros for each chapter.

The basis for the deduction comprises the total cost of the production, the costs of obtaining copies and the costs of promotion and advertising borne by the producer, up to a limit for both of 40% of the total cost of the audiovisual production.

In the case of co-production, the above amounts are determined according to the respective percentage share of production of each producer.

The deduction ("Tax Credit") is generated in each tax period according to the production cost generated in that period, although it is applied from the tax period in which the production of the audiovisual work is completed. In the case of animation productions, the deduction is applied from the tax period in which the certificate of Spanish nationality is obtained.

The application of the tax credit is extended to taxpayers who participate in the financing of productions.

The amount of the deduction, the project will be financed, together with the rest of the aid received, may not exceed 50 % of the total cost of production. This percentage varies:

-Until 85% for short film

-Until for productions directed by a person who has not previously directed or co-directed more than two feature films qualifying for commercial exploitation in cinemas, and whose production budget does not exceed 1.500.000 euros; for productions filmed entirely in one of the co-official languages other than Spanish which are screened in Spain in the aforementioned co-official language or subtitled; for productions directed by persons with a degree of disability equal to or greater than 33 % with recognition by the competent body; for productions with special cultural or artistic value that require exceptional financial support in accordance with the criteria established by Ministerial Order or in the corresponding calls for applications that are published; for international co-productions with Latin American countries or developing countries (UNESCO); and for animated works in which the production budget does not exceed the sum of 2.500.000 euros, are exclusively for animation and have special cultural or educational value

-Until 75% for productions made exclusively by women directors; for documentaries.

-Until 60% for cross-border productions financed by a Member State of the European Union and involving producers from more than one Member State.

The following requirements must be met for the deduction to be applicable: That the production obtains the certificate of nationality and the certificate attesting to the cultural character of its content; and that a new copy in perfect condition of the audiovisual work produced is deposited at the Filmoteca Española or a film library officially recognised by the corresponding Autonomous Community.

Investments in foreign productions ("Tax Rebate")

The investments on foreign productions for feature films and audiovisual series of fiction, animation or documentary films, the amount of the deduction is 30 % in respect of the first million euros the basis of the deduction, and 25 % of the excess of that amount. The deduction applies provided that the expenditure is incurred in Spanish territory are at least 1.000.000 200,000, except in the case of animation productions where such expenditure must be at least 200,000 euros. The limit per production is 20.000.000 of euros, and in the case of series is 10.000.000 per episode produced.

The amount of this deduction together with the other aid received by the taxpaying company may not exceed 50% of the production cost.

In order for the tax rebate to apply for the execution of a foreign feature film production, the following conditions must be met: The production obtains the certificate attesting to its cultural character; that a specific reference to being eligible for the tax incentive, the collaboration of the Spanish Government, Autonomous Communities, Film Commissions or Film Offices is included in the final credits of the work; and that the rights holders of the work authorise the title and the graphic and audiovisual press material.

TAX INCENTIVES FOR AUDIOVISUAL PRODUCTION IN THE CANARY ISLANDS (TAX "TAX CREDIT")

What are the tax deductions for international ("Tax Rebate") and national ("Tax Credit") film and audiovisual productions in the Canary Islands?

Tax Incentives in the Canary Islands. As for the international productions, production companies with their registered office for tax purposes in the Canary Islands and which are responsible for the execution of a foreign audiovisual production, i.e. production service companies, are entitled to an tax rebate of 50% of the production expenses incurred in the Canary Islands up to 1.000.000 and 45% on the rest of the expenses, being the maximum limit deduction for each audiovisual work of 36.000.000 of euros. . The tax incentive cannot exceed 85% of production.

It is not necessary for the production to have Spanish nationality, but it must contract a Canarian production company acting as a service producer.

A cultural work certificate issued by the ICAA must be obtained.

The following are considered deductible expenses the expenses of creative personnel with tax residence in Spain or in a Member State of the European Economic Area up to a limit of 50.50,000 per person; expenses arising from the use of technical industries and other suppliers (expenses of the executive producer, producer, production assistant, production team, director, production assistant, director's assistant, director, scriptwriter, casting personnel and casting controllers; set design team, set designer, decorators, florists, assistant decorators, set decorators, set decorators, props, carpenters, etc.). Also included are the costs of materials needed for the scenery: building materials, carpentry, paint, fabrics, etc.); costumes and characterisation team costs (costume designers, tailors, hairdressers and make-up artists, including costumes, make-up, wigs, etc.); costs incurred by the costume and characterisation team (costume designers, tailors, hairdressers and make-up artists, including costumes, make-up, wigs, etc.).): costs incurred by special effects equipment (including special effects technicians, model makers, etc.), pyrotechnics, smoking materials, accelerants, detonators, fire extinguishers, etc.); costs incurred by the camera equipment rental (camera operators, assistants, lighting equipment and sound equipment); expenses of the Film & Tv Crew (telecommunications engineer, electronic maintenance technician and image control technician, and related costs such as mobile telephony, internet, satellite lines, data lines for routers, etc.); costs of secondary technical equipment (general crew, special crew, stuntmen, stunt doubles, acting doubles, lighting doubles, etc.)); expenses for secondary technical equipment (general crew, special crew, stuntmen, stuntwomen, acting stuntmen and lighting stuntmen); expenses for additional personnel (choreographers, master-at-arms, military advisers, dialogue teachers, animal handlers, drivers, security personnel, cleaning crew, medical and ambulance personnel, on-set risk supervisor, truck unloading assistants, expenses for moving technical equipment or props); subsistence and accommodation costs for the crew involved in the filming of the pre-production phases or in the production and closing phases of the project (also included are subsistence and accommodation costs for personnel in charge of props, locations, production, drivers in transit, etc.); transport costs for the transport of material for the filming of the project (including the transport of the crew's own equipment); transport costs for the transport of the crew's own equipment (including the transport of the crew's own equipment).); transport costs of filming material, props and/or machinery to be used in the filming on national territory (air, sea and/or road transport, and transport and/or transfer costs of people within national territory when the filming takes place in different locations, including pre-production costs for location scouting, etc.); transport costs of the filming material, props and/or machinery to be used in the filming on national territory (air, sea and/or road transport, and transport and/or transfer costs of people within national territory when the filming takes place in different locations, including pre-production costs for location scouting, etc.) and/or travel for casting selection work); costs of civil liability insurance with coverage directly related to the film production; costs of renting premises and locations for filming, and taxes and fees, and costs of renting other premises that are directly related to the production (industrial buildings used for storage, office for coordination of production activities, premises or caravans for wardrobe and make-up or for management meetings, the booths, etc., when the office for coordination of production activities is different from the project management office); costs of renting animals, weapons and ambulance used for filming; costs of renting furniture and equipment of the production department, furniture and equipment of the artistic department other than the project management office, etc.); costs of renting animals, weapons and ambulance used for filming, where the production coordination office is separate from the project administration office); expenses for the rental of animals, weapons and ambulance used for filming; expenses for the rental of furniture and equipment for the artistic department, and expenses for copying and printing for this department; other expenses such as air-conditioning and heating of the set, repair and maintenance costs of vehicles used for filming, hire of vehicles for transporting cars used in the production, extras' and extras' props, hire of extras' and extras' cars, dry cleaning, catering, hire of staff lockers, hire of walkie-talkies during filming, costs of damage to rented premises, supplies, etc.

The following are not included in the basis for deduction ("Tax Rebate") the following expenses linked to administrative tasks: air, sea and/or road transport expenses of filming material, props and/or machinery from other countries to Spain to be used in the filming, as they are not expenses generated in Spanish territory; legal and labour consultancy expenses; expenses of the administrative team, including the rental of premises considered as an administration office, expenses of administrative staff (chief accountant, accountant, accountant-payer, and accounting assistant; rental of office machinery and furniture: photocopiers, printers, office furniture, etc..; expenses for the purchase of office supplies, stationery and courier services; and maintenance and subsistence expenses for administrative staff); expenses arising from the tax depreciation of assets directly assigned to the executive production of the series in the proportion corresponding to their assignment to the series if they are expenses for investments made abroad and which affect the production of the series.

As for the spanish productions or co-productions the Canary Islands Audiovisual Production Certificate is applicable to national productions or co-productions that obtain the Canary Islands Audiovisual Production Certificate deduction of 50% on the first million euros, and 45% for the rest of the capital invested, with the limit of 36.000.000 (Tax Credit).

Requirements for obtaining the deduction: obtaining the Canary Islands Certificate of Audiovisual Production issued by the department of culture of the Government of the Canary Islands, in addition to the Certificates of Spanish Nationality and of Cultural Character issued by the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA).

At least 50% of the deduction base must correspond to expenses incurred in Spanish territory, the amount of this deduction together with the other aid received may not generally exceed 50% of the production cost. This limit may be exceeded in the following cases

-The 85% of the production cost for short films.

-The of the production cost for productions directed by a person who has not directed or co-directed more than two feature films qualifying for commercial exploitation in cinemas, and whose production budget is not more than 1.500.000 euros; for productions filmed entirely in one of the co-official languages; and for productions directed exclusively by persons with a degree of disability equal to or greater than 33% recognised by the competent body; for productions made exclusively by female directors; for productions with a special cultural and artistic value that require exceptional financial support in accordance with the criteria established by Ministerial Order or in the corresponding calls for aid; for documentaries; and for animated works with a production budget of less than 2.500.000 euros: for cross-border productions financed by a Member State of the European Union or involving more than one Member State; and for international co-productions with Ibero-American countries.

Taxpayers participating in the financing, i.e. investors, of Spanish productions, and of the expenses incurred in obtaining copies, advertising and promotion at the producer's expense up to a limit of 30% of the cost of the production, but without acquiring intellectual property rights, the ownership of which must in any case remain with the producer.

Which productions can benefit from the tax credit offered by the Canary Islands?

a) Fiction and animated feature films, short films and documentaries.

b) Fiction, animation or documentary audiovisual series.

These categories must satisfy the essential requirements for obtaining the Certificate of Spanish nationality and the Cultural certificate issued by the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA), the deposit of a copy of the production in the film library and the Canary Islands Certificate of Audiovisual Production issued by the Government of the Canary Islands.

What expenses can be deducted?

The basis for the deduction is made up of the cost of production and the costs of obtaining copies, advertising and promotion expenses payable by the producer up to a limit of 40% of the cost of production for the aforementioned expenses. This total amount is reduced by the amount of the subsidies obtained to finance the investments that generate the right to the deduction.

Who can benefit of the Canary Islands tax credit?

Production companies with their registered office and effective address in the Canary Islands, or with a permanent establishment in the Canary Islands that co-produce with an entity registered in the corresponding Register.

How is the tax credit ("Tax Credit") obtained in the Canary Islands?

The amount of the tax credit is the tax credit to be deducted from the producer entity's corporate income tax liability. In the event that there is not enough tax liability to be able to apply the full amount of the deduction, the outstanding balance can be deducted from the tax liability generated in the corporate income tax of the following 15 years. The deduction is generated in each tax period for the production cost incurred and is applied from the tax period in which the certificate of nationality is obtained.

What requirements must be fulfilled in order to obtain the tax credit in the Canary Islands?

The total amount of aid received by the production company, including deductions and subsidies, must not exceed 50% of the production cost.

At least 50% of the deduction base must correspond to expenses incurred in Spanish territory. The same investment cannot give rise to the application of more than one deduction for the same entity, nor can more than one deduction be applied in more than one entity.

What are the tax incentives offered by the Canary Islands Special Zone?

The Canary Islands offer other tax instruments that provide incentives for the operation of companies regardless of their sector of activity, and which are therefore compatible with companies in the audiovisual sector. An entity which carries out audiovisual production activities can be set up as a ZEC entity, which means that it is taxed at a 4% rate of corporation tax instead of the 25% rate in force in the rest of Spain, provided that certain requirements are met. This reduced rate for the Canary Islands Special Zone is compatible with the other deductions and incentives to which an audiovisual production company may be entitled up to the applicable accumulation limits. It has other advantages and exemptions:

-In the Canary Islands Indirect Tax: IGIC at 0% rate on transactions between companies under the ZEC regime; 0% IGIC rate is also applied to certain deliveries and imports of goods and services for the production of feature films or fiction, animation or documentary audiovisual series under certain conditions. The application of the 0% rate requires prior recognition by the Tax Agency. Exemption from IGIC on the import of raw materials and finished products.

-Exemption from Transfer Tax and Stamp Duty (ITP and AJD).

-Exemption on Repatriation of dividends for non-resident companies as there is no withholding tax on dividends repatriated to the non-EU foreign parent company.

-Exemption of dividends, interest and capital gains paid to any country in the world that does not qualify as a tax haven.

What are the requirements to become a ZEC entity?

Be a newly created entity/branch; at least one of the Administrators must be resident in the Canary Islands: make a minimum investment of 100,000 euros in tangible and intangible fixed assets within two years of registration of the ZEC entity (For innovative projects in knowledge-intensive activities the minimum investment is reduced to 50,000 euros. Audiovisual companies creating 6 jobs in the first case and 4 jobs in the second case are exempted from this requirement); create 5 jobs in the first six months of the activity, maintaining this annual average for as long as the company remains in the ZEC, if the activity is carried out on an island with capital; this is reduced to 3 jobs if the activity is carried out on an island without capital; the activities to be carried out must be authorised within the ZEC.

The authorised activities in the audiovisual sector are: -Audiovisual productionFilm, video, radio and television production. -Production services, shooting assistance and post-production: -VFX-Sonorisation-Production services: camera, lighting, carpentry or props (excluding rental without personnel)-Casting, locations and dubbing-Editing and reproduction of recorded media-Reproduction and duplication of feature films, compositing and photoengraving-Intermediation services for obtaining contracts. -PhotographyPhotography and feature film development activities. -Marketing and advertisingDirection of catalogues, publications and promotional material-Creation and implementation of advertising campaigns.-Audiovisual distribution.

TAX INCENTIVES FOR AUDIOVISUAL WORKS IN BIZKAIA ("TAX CREDIT")

What investments and expenses in audiovisual productions provide tax incentives in Bizkaia ("Tax Rebate")?

Tax Incentives Bizkaia. Investments and expenses in the production of feature films and short films and other audiovisual works of fiction, animation or documentary that allow the production of physical support prior to serial audiovisual production entitle the producer to a deduction in the net quota of a percentage of the deduction base, which is made up of the cost of the production and the expenses for obtaining copies and for advertising and promotion to be borne by the producer.

The deduction may be applicable by the executive producer only in cases where the producer of the audiovisual work is non-resident in Spanish territory and does not operate in that territory through a permanent establishment.

Where the deduction is taken by the executive producer, the basis for the deduction is exclusively the cost of production borne by the taxpayer.

In the case of co-production, the amounts are determined for each co-producer in accordance with their respective percentage of participation in the work.

The deduction is deemed to have been generated and is taken in the periods in which the payments are made and for the amount of the payments.

What is the deduction percentage for audiovisual works in Bizkaia ("Tax Rebate")?

a) From 60 per cent for productions in which the amount of the investments and expenses included in the basis for the deduction made in the Territorio Histórico de Bizkaia where the taxpayer has his or her tax domicile are greater than 50 per cent of the total amount of the investments and expenditure.

b) From 50 per cent for productions in which the amount of the investments and expenses that are included in the basis for the deduction to be made carried out in the Territorio Histórico de Bizkaia where the taxpayer has their tax domicile account for between 35 per cent and 50 per cent of the total amount of investments and expenditure.

(c) From 40 per cent for productions in which the amount of the investments and expenses that are included in the basis for the deduction to be made carried out in the Territorio Histórico de Bizkaia where the taxpayer has their tax domicile exceeds 20 per cent of the total amount of the investments and expenditures and do not reach 35 per cent.

(d) From 35 per cent for the other cases.

When audiovisual works be filmed entirely in Basque the applicable deduction percentage would be increased by 10 percentage points.

What is the "Tax Rebate" limit for audiovisual works?

The amount of the deduction together with the rest of the aid obtained by the taxpayer for each audiovisual work cannot exceed 50 per cent of the total production budget, unless the production is financed by more than one Member State of the European Union and involves producers from more than one Member State of the European Union. In this case cannot exceed 60 per cent of the total production budget.

Where the deduction is applied by the executive producer, the above percentages apply only to the expenses incurred by the taxpayer.

The above limit does not apply in the case of audiovisual works that are considered "difficult", and does not apply to co-productions involving countries on the Organisation for Economic Co-operation and Development's Development Assistance Committee List.

What are the requirements for applying the tax rebate in Bizkaia?

The following requirements must be met in order for the deduction to be applied:

-That the production obtains the certificate attesting to the cultural nature of the work in relation to its content,

-What a new copy is deposited in perfect condition at the Basque Film Library or at competent institutions or bodies. This requirement does not apply when the deduction is assigned by the executive producer or when it is not a work of Spanish nationality.

How do I obtain the certificate attesting to the cultural character of an audiovisual work?

The certificate of cultural character is granted by the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) on application, which will decide on the basis of the fulfilment of at least two of the following requirements:

-The original version of the film must be in any of the co-official languages of Spain. In the case of co-productions with foreign companies, the original version of the feature film may be in one of the official languages of the European Union.

-The content should be mainly set in Spain.

-That the content is related to literature, music, dance,Architecture, painting, sculpture or artistic expression.

-That the script is an adaptation of a pre-existing literary work.

-The content of the audiovisual work is biographical in nature or reflects historical events or characters.

-That the content includes mythological or legendary stories, events or characters that can be considered to be part of any cultural heritage or tradition in the world.

-To enable a better understanding of cultural, social, religious, ethnic, philosophical or anthropological diversity.

-The content must be related to issues or topics that are related to the Spanish social, cultural or political reality, or that have an impact on them.

-One of the main characters or several of the secondary characters in the film story must be directly linked to the Spanish social, cultural or political reality.

-The work is specifically aimed at children or young people, and contains values in accordance with the principles and aims set out in the Education Act and the Law for the Improvement of Educational Quality.

When is an audiovisual work considered to be a "difficult" for the purposes of obtaining the "Tax Rebate" in Bizkaia?

An audiovisual work is considered to be "difficult" for the purposes of the tax deduction in Bizkaia if it is among the following cases: Short films)-Films that are the first or second work by a director-Films whose only original version is in Basque-Low-budget films: those whose production costs do not exceed the following amounts 1.000.000 of euros-Works which, due to their subject matter or other production issues, have difficulties in entering the market (In this case, the taxpayer must demonstrate that the work has difficulties in entering the market, and an application must be made to the tax authorities for classification as a difficult work)

How is participation in the financing of audiovisual works regulated?

Corporate Income Tax or Personal Income Tax taxpayers operating through a permanent establishment who participate in the financing of the production of feature films and short films and other audiovisual works, and of fiction, animation or documentary series that allow the production of a physical medium prior to serialised industrial production that meet the requirements to generate their right to the aforementioned tax deductions are entitled to make a deduction from the net tax payable. This deduction is wholly or partially incompatible with the deductions to which those other taxpayers would be entitled under this provision.

This deduction does not apply where the taxpayer participating in the financing of the production is related to the taxpayer.

It is understood that the taxpayer participates in the financing of the production of an audiovisual work of another taxpayer when he/she contributes non-refundable amounts to cover all or part of the investments and expenses that make up the basis for the deductions. Subrogation in the position of the taxpayer participating in the financing is not allowed except in cases of universal succession.

In order to apply for participation in the financing of an audiovisual work, it is necessary to enter into a contract.

Contributors participating in the funding may not acquire intellectual property or other rights to the results of the production.

If taxpayers opt to apply the aforementioned participation scheme, the producer and/or executive producer are not entitled to apply the corresponding total or partial amount of the deduction, and instead the taxpayer participating in the deduction is entitled to credit the deduction in its self-assessment of the tax, the amount being determined under the same conditions as would have been applied to the taxpayers that would have generated the right to apply the deductions. However, the taxpayer participating in the financing may not apply a deduction greater than the amount resulting from multiply by 1.20 the amount of the sums you have paid out for the funding. The excess can be applied to non-equity taxpayers.

The taxpayer who participates in the financing shall apply annually the deduction corresponding to him according to the contributions paid in each tax period, as well as the deduction provided for in general terms that is accredited in each tax period. If the taxpayer participating in the financing contributes amounts in the tax period for which a higher amount could have been deducted, the excess can be carried forward to subsequent tax periods subject to the above limitations.

The application of the deduction for the taxpayer who participates in the financing of an audiovisual work should be taken into account for the purposes of applying the 35 per cent limit.

TAX REBATE FOR INVESTMENTS IN CINEMATOGRAPHIC FILMS AND OTHER AUDIOVISUAL WORKS IN NAVARRA ("TAX REBATE")

What tax rebate ("Tax Rebate") can be obtained in Navarre for investments in cinematographic films and other audiovisual works in Navarre?

Tax deduction in Navarre. Investments made in Spanish productions of cinematographic films and other audiovisual works of fiction, animation or documentary that allow the creation of a physical medium prior to their broadcast entitle the production or co-production companies of Spanish productions to obtain a deduction from the net amount or basis of deduction of the 45% ("Tax Rebate").

The basis for the tax rebate consists of the investment of the production or co-production company if the expenditure generated in navarre accounts for 45% of investment. If this percentage is not reached, the basis for the deduction will be the result of dividing the expenses incurred in Navarre by 0.4.

Recognition of the investment will be carried out by means of a procedure to be carried out by the Directorate General for Culture of the Government of Navarre.

The tax deduction may reach 50% if the following requirements are met:

-Productions whose only original version is in Basque

-Productions made exclusively by female directors.

-Documentaries

-Animation productions

-Productions directed by a person who has not directed or co-directed a feature film or a series of fiction, animation or documentaries.

The maximum amount of the deduction ("Tax Rebate") is 5.000.000 of euros.

In the case of co-productions, the above amounts are determined for each producer according to their respective percentage of participation in the co-production.

The deduction ("Tax Rebate") is deemed to be generated in the tax period in which the production is completed. When the production has a term of more than twelve months or affects more than one tax year, the producer may opt to apply the deduction to the extent that the payments are made and for the amount of these payments, applying the deduction system in force on the date on which the deduction begins. In this case the deduction shall be deemed to be generated in the periods in which the payments are made.

Production companies wishing to obtain this deduction ("Tax Rebate") must submit an explanatory report of the project to the Directorate-General for Culture of the Government of Navarre, which will issue a binding report whether the project complies with the requirements and conditions for the deduction.

When the report has been requested, the producer can enter the deduction generated in his declaration/settlement.

What is the Tax Rebate for production companies? for investments in cinematographic films and other audiovisual works in Navarre?

The amount of the deductions together with the rest of the aid received by the taxpayer for each production cannot exceed 50% of the eligible costs. This limit may be exceeded in the following cases:

-85% for short films and works costing more than one million euros.

- for productions shot entirely in Basque; for productions directed by a person who has not directed or co-directed more than two feature films; and for productions directed exclusively by people with a degree of disability equal to or greater than 33% (recognised by the competent body).

-75% for productions made exclusively by female directors; for documentaries; for animated works with a production budget not exceeding 2.500.00 euros; and for productions with special cultural and artistic value that require exceptional funding (according to the criteria established by Foral Order or in the corresponding calls for applications for aid).

-60% for cross-border co-productions and for international co-productions with Iberoamerican countries

What requirements must be met in order to obtain the Tax Rebate for investments in cinematographic films and other audiovisual works in Navarre?

In order to be able to apply the tax rebate, the production must be able to obtain the certificate of nationality and the certificate attesting to cultural character for their content, their link with cultural reality or their contribution to the enrichment of the cultural diversity of cinematographic works shown in Spain, both issued by the Instituto de Cinematografía y de las Artes Audiovisuales (ICAA), and in addition:

-Provide or allow access to the graphic and audiovisual material of filming and locations in Navarre

-Include in the final credit notes that the production is covered by the tax incentives established in the Regional Law on Corporate Tax of the Community of Navarre.

-Include the logo of the Government of Navarre.

-In national productions or co-productions, the production company must deliver a copy of the production to the Filmoteca de Navarra within three months of its completion.

What expenses are included in the basis for the deduction for investments in cinematographic films and other audiovisual works ("Tax Rebate") in Navarre?

The basis for the deduction consists of:

-The cost of production until a standard copy is obtained or of a digital master's degree

-The costs of publicity and promotion of the work up to a limit of 40% of the production cost.

-(d) the cost of adapting the finished audiovisual work to the media or systems necessary for its exhibition (d) the cost of making the material supports necessary to ensure the preservation of the audiovisual work, and the cost of obtaining copies or other media.

-The costs incurred for the issuing of the special audit report attesting to the cost of the audiovisual work.

Financial costs and indirect taxes are not included in the amount of the investment.

If the investment arises from purchases of goods or services from a related person, the amount of the investment would be determined by the cost of the goods or services in the entity if sufficiently justified.

The above limits and specialities also apply to subcontracted expenditure.

What criteria are established to determine the expenses incurred in Navarre?

The following are considered expenditure incurred in navarre the following:

Services provided from Navarre when the service provider is resident in Navarre for tax purposes - Expenses for the purchase of goods used in Navarre and made to persons or entities resident in Navarre for tax purposes - Depreciation expenses derived from tangible or intangible fixed assets when they are effectively used in Navarre and the person making the delivery is resident in Navarre for tax purposes (If the goods are partially used, it is understood that the proportional expense is incurred in Navarre according to the degree of use in Navarre.

The following are also considered expenditure incurred in Navarre the following: The expenses derived from the payment of salaries of workers under the labour regime if the work or services are provided in Navarre-The expenses derived from electricity, water or gas supplies when carried out in Navarre territory-Insurance expenses when the location of the risk occurs in Navarre territory-The expenses for the transfer of use or lease of real estate when located in Navarre territory-Hotel and catering expenses when the service is provided in establishments located in Navarre-The location criteria established above are applicable to the expenses incurred by the production company and to the expenses that are the object of subcontracting.

Taxpayers wishing to take advantage of the "Tax Rebate" must submit the required documentation to the Directorate General of the Government of Navarra's department responsible for culture for the issuing of a report to determine whether the project meets the requirements and conditions for the rebate. The documentation to be submitted is an explanatory report on the project, a budget of project expenses, a declaration that the project meets the conditions required by the Instituto de la Cinematografía y de las Artes Audiovisuales (ICAA) for obtaining the certificate of nationality and the certificate accrediting the cultural nature and a declaration that the project meets the conditions established in the aforementioned Ley Foral for eligibility for a 40% tax rebate.