Commentary

D7.1272 Theatrical production companies—calculation of profits and losses

Corporate tax
Corporate tax | Commentary

D7.1272 Theatrical production companies—calculation of profits and losses

Corporate tax | Commentary

D7.1272 Theatrical production companies—calculation of profits and losses

The production activities of a theatrical production company are treated as a separate trade of that company. The activities are separate from any other activities of the company, including any activities relating to another theatrical production1. Profits and losses are therefore calculated separately for each theatrical production that the company produces.

The trade begins on the earlier of the beginning of production phase of the theatrical production and the first receipt of any income from the theatrical production by the company2.

Income is defined as all income from the production, including receipts from the sale of tickets or of rights in the theatrical production, royalties or other payments for use of other aspects of the production such as characters or music, rights for merchandise and receipts by the company by way of

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