In articles
36.3 and 39.7 of the Corporate Tax Law, incentives are provided for investment
in live music shows, theater, and performing arts (in the absence of patronage
laws).
The Law: Fiscal Incentive
Articles 36.3 and 39.7 of the Corporate Tax Law allow any company to obtain a tax benefit of 120% by supporting live music, theater, and performing arts projects through a simple procedure. Freelancers can also take advantage of these deductions, as according to article 68.2 of the Personal Income Tax Law, taxpayers who engage in economic activities can apply the investment incentives and stimuli established or to be established in the Corporate Tax Law (in this case, cultural projects like those mentioned).
This regime aims to improve the financing of the cultural sector by encouraging private sector participation. This formula implies:
· Recovering the total amount contributed
· Obtaining a 20% capital gain
· In less than 12 months
· Without the risk or volatility of financial markets and other types of investments
How does it work?
We connect cultural projects with companies interested in contributing to artistic projects to benefit from the tax savings while supporting cultural financing. We offer support and monitoring throughout the year.
Sponsorships and CSR
Investing in culture fosters synergies in terms of sponsorships, CSR, and reputational value with clients and stakeholders. Additionally, relationships with cultural promoters can lead to very interesting sponsorship agreements. For more information, contact us.
Calculator
For an idea of the amount to contribute and the profitability it generates:
Note that as an investor, this profitability should be accounted for as financial income and is part of the taxable base for Corporate Tax or Personal Income Tax.
I still don't know the result of the financial year. When should the investment be made?
We recommend not delaying the decision to invest, as a project that matches the company's interests and the deadlines of the investor and the producer must be sought. The recommended period for investment is between September and mid-November if the closing date is 31/12.
I have made an investment above the limit. What happens?
In the event of an investment above the permitted limit, the money is not lost; it simply remains pending for future years (up to 18 years).
Contact your advisor for more information about this investment with an interesting financial-tax profitability and without risk.
