General national economic measures

 

*company tax relief

*VAT relief

*unemployment relief

*unemployment relief for freelance workers

*mortgage payment holiday

 

National

-An extraordinary allowance is provided for self-employed workers affected by the suspension of economic activity. 

-The use of temporary employment schemes has been simplified and access conditions to them have been extended. In addition, employers benefit from certain exemptions of social security contributions during the period of application of the temporary employment adjustment scheme. 

-€14 billion in deferred tax expenditure for 6 months for SMEs and the self-employed.

-About €10 billion moratorium on mortgage loan payments on primary homes for those identified as economically vulnerable, facing extraordinary difficulties procuring payment as a result of the COVID-19 pandemic.

-€100 billion in credit guarantees programmes for companies and the self-employed to help meet the financing needs derived, among other things, from payments of wages, invoices, current needs or other liquidity needs, including those derived from maturities of financial or tax. 80% guarantee for small and medium sized businesses, and 70% guarantees for larger companies. 

 

National measures specific to the music sector or to culture in general

 

The music sector can benefit from the above-mentioned general measures.

 

On top of this, specific measures are being introduced for the cultural sector:

 

-National

 

Companies and self-employed in the cultural sectors have access to the first tranche (€20bn) of the €100bn credit guarantee programme for companies and self-employed mentioned above. 

 

Interested companies and freelancers were able to request the guarantee for their operations until September 30, 2020.

 

More information here.

On May 5th, the government presented a €76m plan for the recovery of its cultural and creative sectors - some of the measures introduced include:

-extraordinary access to unemployment benefit for employees, with more flexible criteria.

-extraordinary access to unemployment benefit for freelancers and self-employed who have lost their revenues, for a period of up to 180 days depending on the period of employment during the previous year.

-€38,2m grant for the performing arts and music sectors.

-payout of incurred eligible expenses related to publicly funded cultural activities and projects affected by total or partial cancellations or postponements due to COVID-19.

-€20m credit fund for cultural and creative SMEs, which in turn is meant to mobilise at least €40m in credits for each sub-sector, including music, via loan guarantees schemes. (more info here)

This represents a small increase over the regular annual budget for culture. So far there are no specific funds or measures for music companies, e.g. record labels.

 

-Regional

 

Barcelona

 

To mitigate the impact of the crisis on the cultural sector, the city of Barcelona put in place a series of ten measures (€1m special subsidy, advance payments for programmed shows with companies and artists with programmed shows postponed to receive down payments, etc.). See more information here

 

Barcelona also called on the Spanish and Catalan governments to implement measures to help the cultural sector. The Spanish government is urged to cut VAT on culture and in the sphere of education to 0%, at least until December 2020. The Government of Catalonia is also urged to reach an agreement with the Catalan Finance Institute to open up a line of micro credits of up to €20,000 euros at zero or low interest rates, to meet the needs of SMEs in the cultural sector.

 

Catalonia

 

Among other measures, a €10 million interest loan line for cultural companies will be proposed, the non-revocation of grants already granted and the rescheduling of planned activities. More information here

The Spanish Association of Independent Labels UFI - through ES_Música the Spanish Music Federation - called on the government to implement the following measures:

Urgent measures

 

  • 1.Apply the concept “due to force majeure” to allow the possibility of suspension or postponement of the musical events scheduled before the alarm state whose celebration was scheduled for 2020.

  • 2.Relaxation of the consumer regulations related to the refund of the amount of tickets in case of postponement and cancellation. We considered that this could be possible as other countries such as Portugal, Belgium, Germany and Italy have already implemented the possibility to maintain the ticket within 365 days from the planned celebration date.

  • 3. Adaptation of the state financing funds by covid-19 to the reality of the music industry, particularly to SME’s and freelancers and to legal figures such as AIE’s. In this sense, given the time  lag between the collection and settlement periods of the rights management we were asking for extension of the same support to the measures agreed for other sectors for the terms in which the reductions occur of income in liquidations of coming years (2021-2022) as a result of the collections decrease suffered during the alarm state declared in Spain.

  • 4. Adaptation of the ERTE (temporaly labourforce adjustment plan) to the reality of the music industry.

  • 5. State compensation fund to cover the companies of the sector the losses caused by the expenses of cancellation or postponement of an event or concert, the closing of the concert venues, record stores and music teaching material. Also for the expenses of record production, the collection of copyrights, authors and publishers.

  • 6. Create a financial compensation fund to grant a temporary basic income two authors, producers, musicians and self-employed professionals in the music industry who are facing needs due to the sudden stop of their activity. This fund whose administration would be insured by the rights management organizations. To be included in this compensation fund, employees and professionals must comply with the Royal Decree-Law 26/2018.

  • 7 For those musicians working for others and professionals in the music industry whose activity is carried out with the hiring mode “occasional and for specific work” that are not going to be carried out, consider access to unemployment protection without the requirement of a grace period. The periods of unemployment consumed during this suspension should not case prejudice to the possibility to apply for unemployment benefits in the future.

  • 8. In the case of concert venues and other facilities such as offices, recording studios, rehearsal rooms, where the activity is carried out we were asking for a period of lack of rents for the duration of the closure through the creation of an extraordinary endowmen. Also we were asking to the possibility to prorate the unpaid rentals for 1 year. Also prohibition of eviction for non payment.

  • 9. Promote a work plan between the Ministry of Culture  for the recovery of the music industry.

  • 10. Strategic plan for communication, promotion and commercialization of the music industry led by the Minister of Culture and EsMúsica.

  • 11. Promote a cultural voucher for the music sector financed by the state to encourage the consumption of cultural goods including recorded music, attendance to concerts, purchase  of scores and musical teaching material.

  • 12. Adapt the bases and requirements of the ordinary aid lines (INAEM) to the particularities of the year 2020.

  • 13. In the case of cancellation of musical events organized by the public administrations, payment of the expenses incurred bu the companies in the music sector. 

 

Specific Measures

 

  • 1.Contribution to the FPT (Technical Provisions Fund) of the financial institution of the cultural sector CREA S.G.R for a 10 million euros to immediately start a financial Covid19 Line for the small companies of the cultural sector. Such contribution would guarantee an injection of 400 millions euros in loans.

  • 2. Payment of the  delayed payments from the Public Bodies, extension of the time limit to justify the aid and grants and advancement in the payment of these to companies and professionals in the music sector.

  • 3. Urgent refund of the VAT credit corresponding to the 2019 fiscal year and requested as “to be returned” by the taxpayers in the fourth quarter declaration.

  • 4. Also, in the case of concert venues and other facilities detailed in the previous point, moratorium on payments for supplies (water, electricity, gas..) and exemption from the payment of public taxes.

  • 5. Create the criteria for compliance with the spending rule of the city councils more flexible so that they can use the remainder money of other exercises in specific aid for the music sector in a local level.

  • 6. Compliance of public administrations with payment terms for services to agents in the music sector.

  • 7. Apply tax deductions in the income statement 2020 and 2021 for all professionals in the music sector and in particular in the case of employed musicians and professionals whose activity is carried out mainly in the hiring mode contract “occasional and for specific work”. 

  • 8. Develop a specific plan to protect the Human Resources of the music industry for all its specialized groups in the sector.

  • 9. Maintain the concept of force majeure until the moment there is a possibility of use the 100% capacity of the venues. Also, be able to participate in the elaboration of the measures of gradual return to normality taking into account the sustainability of events and concerts with limited capacity.

  • 10. Reduction of VAT from 21% to 10% of all services related to live and recorded music and from 10% to 4% from live music tickets.

  • 11. Bonus in the general regime of artists for 2020 and 2021.

  • 12. Fund for aid two the internationalization of Spanish artists, in order to gain the lost ground during the affected months (travel expenses, promotional tours…)

  • 13. Creation of a regulatory framework for the “management of second hand sales through regularized channels and in good faith” to allow the transmission of tickets of the postponed events. This ethical reselling would allow non profit broadcasting directly to the public who cannot attend to an event after its postponement.

  • 14. Collaboration program from the Public Administrations to recover the music events such as exemption fro rents in public spaces and venues, … 

  • 15. Promotion plan for the preferential use of the repertoire from authors and editors among orchestras and artists in general. 

De-confinement process

- On June 21st, the Spanish government ended the emergency state and the decision regarding the total capacity was transferred to each Autonomous Community. Capacities range from 50% to 75% with limitations on the total number of attendees (see here).

- Prior to that, on 29th April, the Spanish government announced a de-escalation plan in three phases (see here).

Of particular interest for the music sector:

  • (Phase 1) From 11th May, in the areas where conditions are most favourable, people were able to pick up goods which they have ordered from shops.

  • (Phase 2 - from late May) Citizens are able to enter the inside of bars and restaurants, with a limit of 30% of capacity. Cinemas, theaters and auditoriums also reopened with a similar limit on capacity, as well as monuments and exhibition centers. At this point, cultural events such as concerts are possible, albeit with a third of their usual capacity. At outdoor events, up to 400 people are allowed, provided they are seated.

  • (Phase 3 - mid-June) Shoppers will be able to enter establishments, but there will be a limit on capacity and they will have to observe social distancing of two meters.

-As of October 2020, the regulations for live venues differ a lot from one autonomous region to another – some venues are forced to stay closed, while in other regions they can open if they meet a number of conditions.

Measures taken by local collecting society organisations

 

SGAE
- The collecting society launched grants (SGAE-Corona funds) of up to 3.000€ per author to cover their losses in the coming months. The grant's total is 15 million euros.
- Food delivery service for members over 70 years old living by themselves or living with a dependent
- Immediate loans of 30% of the last semester's declaration (if the amount earned is in between 3.000 and 10.000€)
More information:  http://www.fundacionsgae.org/es-es/sitepages/AyudasDetalle.aspx?i=126

AIE
- The performer's collecting society launched grants of up to 2.000€ per member.

- The budgeted distribution for April 2020 was increased by 31% from 10 to 13.1 million euros and they expect to increase 2020's total distribution by 11%.
More information: https://www.aie.es/comunicado-aie-24-marzo-2020/

 

Other music funds available

 

None so far.

 

Support from online services

 

No specific support for Spain so far. For other initiatives by online services, click here.

 

Support from national radio and other media

 

Radio 3 stopped the regular schedule and substituted it with playlists. Some of the hosts are streaming their live shows from home through Instagram and doing live interviews with bands from home.

 

Social media and other campaigns to promote music during the crisis

- Record Store Day Spain was celebrated on June 20th with a selection of national limited edition albums. UFi organized Record Store Week, a series of online sessions (on Instagram live) with record stores, labels and artists regarding the event celebrated in Record Store Day Spain under the hashtag #salvemoslastiendasdediscos. 

- #HoyMeComproUnDisco is a campaign launched by Spanish independent music companies association UFi with the aim of helping independent labels and record stores whose activity has been stopped due to the Covid-19 crisis. The campaign aims to reach the audience and raise awareness that, in order for record labels and stores to continue to exist after this exceptional situation, it is necessary that the audience support them by ordering records these days. It is important to say that it has been communicated that the orders will be sent when it is safe to do so. http://ufimusica.com/campana-hoymecomproundisco/

- BMAT calls for radio stations to play music from artists whose shows have been cancelled. The initiative called 'The Show Must Go On Air' aims to encourage broadcasters to support artists who had to cancel shows in Barcelona due to COVID-19. The initiative calls on all broadcasters who play or use music to opt for the songs of those who’ve been cancelled.

 

Local programmes supported by EU funds covering music

 

None so far

Business and other expected losses

 

Out of a research study conducted with 70 independent labels in Spain the estimated losses are:

Physical Sales: 8.077.500€ (all independents in Spain)

Streaming: 909.750€ (all independents in Spain)


Performance Rights: 1.121.500€ (all independents in Spain)

Live Music: 24.305.000€ (all independents in Spain)

 

For more info:

UFi - Unión Fonográfica Independiente - http://ufimusica.com/esmusica-propuesta-de-medidas-al-gobierno-para-ayudar-al-sector/ - hola (@) ufimusica.com

Spain

IMPALA represents independent music companies and national associations in Europe. Our main site is www.impalamusic.org where you can find out more about what IMPALA does. 

Address: 70 Coudenberg - 1000 Bruxelles

Tel: +32 2 503 31 38

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