Laws of Tax Incentives – Brazil

Laws of Tax Incentives for Social Projects in Brazil

 

The abstract presented at the IDIS Portal:

 

Federal Laws

 

Law 11.472/2007 – Allows individuals and corporations enjoy tax incentives directly to supporting sports and parasports projects previously approved by the Ministry of Sports. The law deducts 1% of income tax of physical persons and legal entities of 6%.

 

Law 8.685/1993 – The Audiovisual Law grants tax on corporations and people with audiovisual investment certificates, securities representing shares of participation in films incentives. The deduction is limited to 3% of the income tax due, both for individuals and for corporations.

 

Law 8.313/1991 – Known as the Rouanet Law, provides tax incentives for individuals and companies wishing to finance cultural projects through the National Program Cultural Support (Pronac). For individuals, the law infers from income tax because 80% of the value of donations, and 60% of the value of sponsorship. However, the percentage  of deductibility for companies are 40% to 30% for donations and sponsorships. The legislative mechanism was updated in 2008, by Law 11,646

 

Law 8.069/1990 Act – Establishes the Statute of the Child and Adolescent (ECA) and allows individuals and intended part of your Income Tax Funds for Childhood and Adolescence (AIFs). The deduction for corporations, based on actual income statement, is 1% of the tax due. For individuals, the deduction is 6% of the tax due.

 

Laws State

 

Law 12.268/2006 (SP) – allows the taxpayer the Tax on Circulation of Goods and Services (ICMS) intended part of their contribution to the sponsorship of cultural projects approved by the Secretary of Culture of the State of São Paulo. The percentage of tax incentives ranging from 0.01% to 3% of the tax payable by the taxpayer ascertained, respecting the schedule for the annual outstanding balance ranges.

 

Law 1.954/1992 (RJ) – Gives  tax incentive company established in the state of Rio de Janeiro, to intensify cultural production through donation or sponsorship. The incentive amounts to 2% Tax on Goods and Services (GST) payable in each period for donations or sponsorship of cultural productions of national authors and interpreters, and 1% for foreign sponsorships of cultural productions.

 

Law 17.615/2008 ( MG) – Allows tax incentives to companies that participate in cultural art projects in the state of Minas Gerais. The law implements three levels of tax expenditures: 10%, 7% and 3% Tax on Goods and Services (ICMS) due by the taxpayer. The percentages of incentive vary according to the annual turnover of the sponsoring company.

 

Law 16.318/2006  (MG) ​​- aims to encourage the holding of sports projects in Minas Gerais through the financial support of companies which, in turn, receive tax incentives. The discount referred to the law corresponds to 50% of the penalty and interest for late payment relating to the tax credit related to the Tax on Circulation of Goods and Services (ICMS).

 

 

IDIS released through the link   http://www.idis.org.br/biblioteca/leis-e-principios/leis-de-incentivo-fiscal/  a summary of the Tax Laws Incetivos available for social projects.