Tax incentive laws (Federal, States, Cities) National Film Industry Funds (Funcines) Audiovisual Sector Fund (FSA) Inovation Fund Direct support through the funding of ANCINE and the Ministry of Culture (Public Selections) Procult – BNDES

Tax incentives can also be invested in independent TV productions. film development and distribution. as well as individual taxpayers.TAX INCENTIVES Private and State-owned companies established in Brazil. . are allowed to invest part of their income tax obligations in the production of Brazilian films. film theaters. technical infra-structure. and film festivals.

If the application is approved.TAX INCENTIVES To qualify. the companies responsible for the projects must apply to ANCINE on each specific project. ANCINE will follow up the project and ensure that the money allocated through tax incentives is spent properly. .


Federal Law 8685/1993 (“Audiovisual Act”) • Articles 1 and 1-A Income tax payable by individuals and corporations are entitled to tax deduction if an amount is invested in film or television production. . • Article 1 Tax-payers can acquire an equity participation in independent Brazilian films through the acquisition of securities issued by financial institutions (brokers). • Article 1-A Tax-payers are not entitled to acquire equity participation under this scheme. up to 3% (6% in the case of individuals) of their income tax. which is basically a sponsorship mechanism.

3 Remittance of profits abroad coming from then exhibition and exploitation of foreign audiovisual works in Brazil are subject to withholding tax at rates of 15% (TV programs) or 25% (feature films).685/93 .“Audiovisual Act” . • Article 3 Article 3 allows distribution companies (US majors included) to obtain a 70% tax deduction if they invest the equivalent amount in the production of independent Brazilian feature films.Art. TV films or series.8. .

8%) • WARNER (7.8%) • FOX (17.9%) • FREEWAY ENTERTAINMENT (8.8%) • SONY/COLUMBIA (8.6%) .Main Investors of Art. 3 (2009) • DISNEY (17.4%) • UNIVERSAL (15.0%) • PARAMOUNT (9.

which can get a 70% deduction on withholding taxes due on remittances abroad related to the broadcasting or narrowcasting of foreign audiovisual works and events in Brazil. 3-A • Article 3-A Article 3-A mechanism benefits TV broadcasters.685/93 . TV films and series. documentaries. Taxpayers are allowed to invest an equivalent amount in the co-production of independent Brazilian feature films.8.Audiovisual Act . .Art.

series and educational and cultural television programs. TV films. .228/01 . International TV Programmers are exempt from paying the 11% Condecine tax. 39 CONDECINE (Contribution for the Development of the National Film Industry) is a tax charged on remittances abroad of profits stemming from the exhibition and exploitation of audiovisual works.Audiovisual Federal Law 2. Under Article 39. provided that they invest 3% of the amounts remitted in the co-production of independent Brazilian films. at a rate of 11%.Art.

1-A Law 8.9%) • Source: ANCINE . 3-A Lei 8.3 Law 8.7%) • Art.685/93 (29.228/01 (9.1%) • Law 8.WEIGHT OF EACH TAX INCENTIVE (Jan/2005 .685/93 (0.1 Law 8.685/93 (19.313/91 (13.3%) • Art.8%) • Art.Jun/2010) • Art.3%) • FUNCINES (2.685/93 (25.0%) • Art. 39 MP 2.

Public .FUNDS • National Film Industry Funds (Funcines) Private • Audiovisual Sector Fund (FSA) .

National Film Industry Funds . Projects can be accepted in the areas of production.(FUNCINES) National Film Industry Funds (FUNCINES) are private closed funds managed by Brazilian financial institutions which are accredited by the Federal Central Bank. exhibition. and infrastructure. distribution. The establishment of FUNCINES must be approved by CVM (the Brazilian Securities Commission. as well as shareholding participation in audiovisual companies. . 100% of the amount invested in the acquisition of quotas can be deducted from taxable income. FUNCINES’ financial policies and selected projects must be previously approved by ANCINE. similar to the Securities and Exchange Commission in the US) .


a tax applied to the broadcasting. licensing and distribution of film and video works for commercial purposes.Audiovisual Sector Fund (FSA) FSA was developed in 2008 to provide financial assistance to projects. Audiovisual Fund’s resources come mainly from the “Contribution from the Development of a National Film Industry” (CONDECINE). . and aimed at developing the Brazilian audiovisual industry. production.

Sector Fund’s Financial Support Investment: • participation in projects’ and companies’ future revenue flows Financing: • reimbursable loans to projects • Equalization on financial charges: • total or partial subsidy on interest rates payable and other • financial charges on financing operations Non-reimbursable support: • non-reimbursable financial support for specific purposes .

Sector Fund Future Perspectives Priority areas being considered for future financial support by the Management Committee: • development of audiovisual projects. (specialization in script writing and film business plans) • professional training programs • international co-productions .

The Automatic Support by Ancine This program awards funds to production. distribution and film exhibition companies involved in financially and artistically successful Brazilian films ANCINE provides two automatic funding mechanisms: the Box Office Prize and the Quality Incentive Program .



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