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Recent tax measures affecting the sport & entertainment industries
The Spanish Government has introduced Law 14/2014 to support entrepreneurs and their internationalisation and Law 16/2013 regarding environmental taxation. Taxand Spain discusses the tax measures introduced by these laws which are most relevant for sports institutions or those operating in the entertainment industry.
Special cash basis method for VAT purposes
The special cash basis regime came into force on 1 January 2014. This is a voluntary regime that can be elected by taxable persons whose revenues in the previous calendar year were under 2 million euros. Under this regime, the VAT becomes chargeable when all or part of the price is collected, on the amounts actually received or if this has not occurred, it will become chargeable on 31 December of the year immediately following that in which the transaction was performed.
Tax credit for investments in Spanish productions of feature films and audiovisual series
Article 1.Five.Two of the law regarding measures on environmental taxation amended article 38.2 of the corporate income tax law, to change to 18% the tax credit for investments in Spanish productions of feature films and audiovisual series that can be created on a physical medium before serialised industrial production. It also clarified that the base for the tax credit will include the production cost, copies and any advertising expenses that may be borne by the producer, subject to a cap of 40% of the production cost.
Tax credit for intangible assets with an indefinite useful life
Measures have been introduced to ensure budgetary stability and on encouraging competitiveness, in relation to the tax credit for intangible assets with an indefinite useful life under article 12.7 of the Corporate Income Tax Law, by setting an annual cap equal to one fiftieth of their value for the tax periods started in 2012, 2013, 2014 or 2015.
Special tax on certain means of transportation
An exemption has been introduced from the special tax on certain means of transportation for first registration or, in applicable cases, for the sailing or use of recreational craft or nautical sports vessels solely for the charter business, regardless of their hull length or those owned by nautical sports schools officially recognised by the Merchant Navy Directorate-General and actually and only used to perform teaching activities on them.
Also published in Thomson Reuters' Taxnet Pro, 24 January 2014
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