Royal Decree-Law 26/2018, of 28 December emergency measures on artistic creation and cinematography

Tax news:

IMPUESTO SOBRE SOCIEDADES (Amending Law 27/2014)

  • Modification deduction for expenses incurred in Spanish territory for the execution of a foreign production of feature films or audiovisual works enabling the manufacture of a previous hardware to its mass industrial production.

With effects since July 5, 2018 art.36.2 amending the LIS, removing the obligations imposed on producers benefiting from this tax incentive and Law 6/2018 introduced by PGE.

However, he added that "regulations may establish requirements, financial,s entitlement to practice this deduction "in order that by amending Regulation obligations deemed to be assumed by producers benefiting from this tax incentive, that are proportionate and commensurate to the purpose of the incentive are established .

Income Tax (Amending Law 35/2006)

  • Retention rate reduction applicable to investment income from intellectual property when the taxpayer is not the author, 19 to 15%.

with effect from January 1, 2019Modifies the art.101.4 LIRPF.

"4. The retention rate and income to account on investment income is 19 percent. This percentage is 15 percent for investment income from intellectual property when the taxpayer is not the author.

This level is reduced by 60 percent in the case of yields entitled to deduct the fee under Article 68.4 hereof societies from the letter refers h) the number of said 3.º Article."

VAT (Amending Law 37/1992)

with effect from January 1, 2019The reduced rate of 10% applies to services provided by performers, artists, directors and technicians who are individuals, producers of films that can be exhibited in theaters and organizers of theatrical and musical works. (Add number 13.º to art.91.Uno.2 the LIVA).

Developments in Social Security:

Quote of artists in public performances during periods of inactivity

New art.249 ter within the new section 4 "Artists in public performances" of Chapter II of Title VXII TRLGSS (RD Leg 8/2015) from 29.12.2018.

"Article 249 ter. Inactivity performing artists included in the General Regime of Social Security.

  1. The performing artists may continue including in the General System of Social Security during their downtime voluntarily, as long as accredit, at least 20 days at with actual provision of services in such activity in the previous calendar year and must exceed the remuneration perceived by those days the amount of three times the minimum wage on a monthly basis. Such inclusion must be requested from the General Treasury of the Social Security between 1 and 15 January of each year and recognized, will have effect from 1 January of the same year.

  1. Inclusion in the General Regime the preceding paragraph to be incompatible with the inclusion of workers in any other scheme of social security systemRegardless of the activity in question.

  1. During periods of inactivity, low may occur in the general scheme as an artist:

  1. a) At the request of the workerIn which case the effects of low take place from the first day of the month following the submission of that before the General Treasury of the Social Security.

  1. b) Automatically by the General Treasury of the Social SecurityFor lack of payment of assessed contributions for periods of inactivity during two consecutive monthly installments.

The effects of low, in this case, will take place from the first day of the month following the second installment not entered unless the worker is, on that date, on temporary disability, maternity, paternity, risk during pregnancy or risk during breastfeeding, in which case such effects take place from the first day of the month following that in the end the perception of the relevant economic benefit, the fees due have been paid not earlier.

Produced down in the General System of Social Security in any of the cases referred to in this paragraph to the performing artists may reapply for inclusion and consequently high in it, during their periods of inactivity, under the terms and conditions set forth in paragraph 1.

  1. The contributions during periods of inactivity will be held according to the following rules:

  1. a) The worker will be the subject responsible compliance with the obligation to contribute and income of the respective odds.
  2. b) quote You have character
  3. c) The contribution base be applicable the current minimum base at all times, for common contingencies corresponding to Group 7 the scale of contribution groups in the General Scheme.
  4. d) The applicable contribution rate will be 11.50 percent.

  1. Once the annual final settlement related artists for common contingencies and unemployment, Under Article 32.5 of the General Regulation on trading and settlement of other rights of Social Security, approved by Royal Decree 2064/1995 of 22 December, the General Treasury of the Social Security shall refund the amount of the quotas for the days listed in a situation of inactivity that had been superimposedWhere appropriate, with other periods quoted by them.

If the artist was entitled to reimbursement of Social Security debtor quota or other system resources, credit for the refund will be applied to repay outstanding debts to it in the manner legally required.

Artists inactivity situation included in the general scheme under the provisions of this Article, may not carry out the option provided in Article 32.5.c) second paragraph, The general regulation on trading and settlement of other social security rights.

  1. During periods of inactivity that this provision refersThe protective action comprise cash benefits for maternity, paternity, permanent disability and death and survival arising from common contingencies, and retirement.

Also it is protectedDuring periods of inactivity, the situation of pregnant workers or breastfeeding period until the child reaches 9 monthsWhich can not continue to perform work activity which led to its inclusion in the general scheme as an artist in public performances as a result of their status, it must be accredited this situation by the medical inspection of the National Institute of Social Security. In these cases it will be recognized to the working one subsidy equivalent to 100 percent of the contribution base established in the previous section.

Payment of such benefit shall be assumed by the form of direct payment by the National Institute of Social Security. "

DT only RD-Law 26/2018. Request for inclusion in the General Scheme of Social Security as an artist inactivity.

Year 2019 the application for inclusion in the General Scheme of Social Security as an artist inactivity, governed by Article 249 ter of TRLGSS It may take place until 31 March.

Regulating the special employment relationship of artists in public performances

The DF third of RD-Law 26/2018 establishes a maximum period of 6 months for the government to approve a RD modify the regulation of the special employment relationship of artists in public performances and replace the Royal Decree 1435/1985

Compatibility retirement pension and activity of artistic creation.

The second DF RD-Law 26/2018 establishes a maximum period of 6 months for the government to approve a regulatory standard that developing the art.213 TRLGSS regulate the compatibility of the retirement pension with the activities of those professionals dedicated artistic creation they receive for such intellectual property rights activity.

Such recognition compatibility shall entail a solidarity contribution of 8 percent, in case of workers employed by the employer is 6 percent and 2 percent worker.