Sergio Rodríguez stresses that it was the management of the Isla Bonita Love Festival and the Blue Experience that made it possible to save this important amount and to recover approximately a third of the investment made.
The Cabildo de La Palma, through the Sociedad de Promoción y Desarrollo Económico y Social (Sodepal), has paid into its accounts a total of 750,000 euros from the management of tax incentives associated with investment in major cultural events, such as the Isla Bonita Love Festival and the Blue Experience.
This is the first time that the public company has been able to take advantage of these mechanisms, which endorses the different management of Sodepal promoted by the current Island Government Group.
The island's president, Sergio Rodríguez, emphasises that it has been possible to obtain this important amount by taking advantage of these tax incentives, with a series of steps that had never been taken before, despite the fact that during the last term of office there was already the possibility of taking advantage of this figure and reverting important amounts back to the public coffers.
For this reason, Sergio Rodríguez stresses that "regardless of the noise from the opposition, this government group continues to work to improve the management of the public company, adding tax incentives that had not been worked on until now".
They are, without a doubt, a possibility that also allows economic profitability to be obtained in the investment in major cultural events, which are also social and leisure engines, having the same possibilities as other sub-sectors such as cinema. Thus, Sodepal can add these amounts to the development of its projects, which transform the island's economy.
In this way, Sergio Rodríguez stresses, it also opens up the possibility for these big events that take place on La Palma to have other types of sponsorship from outside the public institutions, which can also benefit from this type of tax advantages, as the island's Cabildo and Sodepal have done.
It is through Article 39 of the Corporate Income Tax Act that deductions generated by investments in live performances of performing arts and music can be carried forward in exchange for amounts of financing to cover all or part of the production costs, as well as advertising and promotion expenses borne by the production.
In this way, one of Sodepal's objectives, the promotion and encouragement of the cultural sector, is strengthened with the management of these tax incentives, which reinforce the public company's commitment to major events that also allow other projects for La Palma to be promoted.
