The Fiscal Incentive for Investment Projects in National Film Production and Distribution, known as EFICINE 189, is a Mexican government initiative that allows taxpayers to support national cinema while optimizing their tax burden. Established in Article 189 of the Income Tax Law (LISR), this program offers a tax credit equivalent to the amount contributed to authorized film projects, deductible from the ISR incurred in the fiscal year in which said credit is determined.
How does EFICINE 189 work?
Through EFICINETaxpayers can contribute resources to domestic film production or distribution projects and, in return, receive a tax credit equivalent to the amount of their contribution. This credit can be applied against income tax generated from the fiscal year in which it is determined. It is important to note that the incentive is not cumulative for income tax purposes and cannot exceed 10% of income tax accrued in the fiscal year immediately preceding its application.
Types of eligible projects
EFICINE 189 is divided into two modalities:
- Production: Supports the production or post-production of fiction, animation and documentary feature films.
- Distribution: Promotes the distribution and exhibition of Mexican films, including commercial premieres, cultural circuits, and free or paid-for screenings.
Requirements to participate
To qualify for the stimulus, taxpayers must:
- Make contributions to authorized film projects.
- Ensure that the resources provided do not come from tax incentives authorized in previous EFICINE periods.
- Comply with the guidelines and requirements established by the Mexican Institute of Cinematography (IMCINE) for the evaluation of projects.
Additional benefits
In addition to the tax deduction, taxpayers who participate in EFICINE 189 They contribute to strengthening the national film industry by supporting the production and distribution of Mexican cultural and artistic content. This incentive also promotes the decentralization of the film industry, incentivizing projects in various regions of the country.
How to start the process?
To participate in EFICINE 189, interested parties must have their Federal Taxpayer Registry (RFC) and consult the calls and guidelines published by IMCINE, where the other requirements and procedures are detailed.
It's advisable to seek specialized advice to ensure compliance with tax obligations and maximize the benefits of the incentive. If you want to support Mexican cinema and, at the same time, optimize your tax burden, EFICINE 189 is an excellent option.
In TaxIDWe can help you navigate this process and ensure your participation is successful. Contact us for more information and personalized advice.
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