PROVINCIAL REGULATION 11/2013, of 5 December, on Company Tax.

Fifteen. Incentives in support of culture.

1. Those investments in Spanish productions involving feature films and audiovisual fiction series, animation or documentaries, which lead to the creation of a physical medium prior to their industrial production in series, shall entitle the producer to a thirty percent (30%) rebate. The sum used for calculating the rebate shall be the cost of the production, as well as the expenses incurred for making copies and the advertising and promotion costs paid by the producer up to a limit in both cases of forty percent (40%) of the production cost.

The rebate provided for herein shall be applicable as of the tax period in which the production of the work is completed. Nevertheless, when the production extends beyond twelve months and involves more than one tax period for the taxpayer, it may choose to apply the rebate as and when the payments are made and for the amount thereof, with application of the current system of rebates in force on the date upon which the production begins.

Once the option has been chosen, this criterion shall remain in force throughout the entire production. The taxpayer that wishes to exercise said option shall be required, within a period of one month as of the production’s start date, to submit written notification thereof to the Department of the Treasury and Finances (Departamento de Hacienda y Finanzas), specifying the cost of the production and the schedule for its undertaking.

In those circumstances in which the chosen option involves applying the rebate as and when the payments are made according to the provisions of the two preceding paragraphs, if the production should not eventually be completed, the entity shall be required to pay the tax due and not paid at the time in response to the rebates applied, raised by the corresponding default interest, which is to be added to the tax due arising from the self-assessed tax return for the period in which the production is abandoned before it has been completed.