The Chamber of Deputies concluded this Wednesday (5) the vote on the Bill 8889/17, which determines the collection of taxes for the audiovisual streaming service. The text now goes to the Senate.
According to the proposal, Companies will have to pay the Contribution for the Development of the National Film Industry (Condecine). The charge will apply to video on demand (VoD) services, television via applications and audiovisual content sharing, such as Netflix and YouTube.
The percentage charged will vary from 0.1% to 4% depending on the annual gross revenue. Those with revenue of up to R$4.8 million are exempt.
Platforms will be able to deduct up to 60% of the contribution per year if they apply the values to the production of national content. The discount applies to VoD services and television apps.
Public communication
VoD and app-based television services will have to offer public communication contentsuch as those produced by Brazilian Communications Company (EBC).
Additional charges are prohibited from the user.
The rule is valid for providers with annual revenues above R$500 million.
Public communication content will not count towards meeting national programming quotas on platforms.
>> See more points of the bill:
- VoD provider will have a 10% quota for Brazilian content. The quota will be collected gradually, with an initial percentage of 2% after one year of publication of the law. The maximum of 10% must be reached in the seventh year.
- Video on demand and television via app will pay a contribution of 0.5% to 4%, with fixed deductible installments of R$24,000 to R$7.14 million in five bands.
- For the sharing service, the tax will be 0.1% to 0.8%, with deductible installments of R$4,800 to R$1.4 million.
- Condecine’s payment may be reduced by 75% if more than 50% of the total audiovisual content offered is Brazilian. The criteria will be defined in regulation.
- Companies will have to invest in workforce training for the audiovisual market in the country
- Services are prohibited from selling films before nine weeks of theatrical release.
Ministry of Culture
In a statement, the Ministry of Culture informed that the approval of the text by federal deputies is an important advance for the audiovisual sector.
The ministry highlighted the approval of the highlight that deals with Condecine Remessa, an 11% tax that applies to amounts sent abroad via streaming platforms.
Companies that reinvest 3% of the amount remitted in the production of independent audiovisual content in Brazil will be exempt.
“Although the approved text does not contemplate all the ambitions initially defended by the MinC, we believe that given the current correlation of forces in the National Congress, it represents an advance in many aspects. The approval brings significant achievements beyond the reestablishment of taxation on foreign platforms, such as the guarantee of national production space on the platforms, the return of the reinvestment percentage to 60%, the reduction of the catalog quota implementation period from eight to six years and the resumption of the regionalization model present in previous versions of the project”, says the folder.
* With information from Agência Câmara and the Ministry of Culture
