A approved this Tuesday (4) the basic text of the bill that regulates streaming services in Brazil and changes the way in which the Contribution for the Development of the National Cinematographic Industry (Condecine) is charged. The proposal, reported by the PP leader, Dr. Luizinho (RJ), received 330 votes in favor and 118 against. Parliamentarians will still analyze highlights — suggestions for changes in specific sections — in a session scheduled for this Wednesday, 5th, according to the president of the House, Hugo Motta (Republicanos-PB).
The approved text establishes a maximum rate of 4% for Condecine on the revenue of video on demand platforms, such as , , and . The charge will be applied in stages, depending on the companies’ annual revenue:
- 0.5% up to R$24 million;
- 1% up to R$100 million;
- 2% up to R$250 million;
- 3% up to R$350 million;
- 4% above R$350 million.
Companies with revenues of less than R$4.8 million are exempt from the contribution. The new rate is lower than the 6% initially proposed by former rapporteur André Figueiredo (PDT-CE), which generated dissatisfaction among sectors of the artistic class, who called for higher taxation. According to Luizinho, the reduction seeks to balance the promotion of national production with the economic sustainability of the platforms.
On the other hand, companies complain about an increase in charges in relation to the previous proposal approved in the Senate, which provided for a maximum rate of 3%, under the report of Senator Eduardo Gomes (PL-TO). According to the opinion, the effective rate could fall from 4% to 1.6%, if platforms invest directly in national productions, as up to 60% of Condecine can be deducted via investments in Brazilian content.
The project also provides for a 0.8% fee from Condecine for video sharing platforms, such as YouTube, Instagram and Kwai, on which content is published by third parties. The rapporteur justified the lower rate by stating that these services are driven by content creators and digital influencers, who generate jobs and income.
Among other points in the text, the following stand out:
- Minimum quota of 10% of Brazilian content in the platforms’ catalogues, half of which is independent productions;
- Possibility of deducting up to 60% of Condecine with investments in production, licensing and workforce training;
- Staggered validity, with part of the rules coming into force immediately and the rest within 180 days;
- Regional allocation of resources, with 30% necessarily invested in independent producers in the North, Northeast and Central-West, 20% in the South, Minas Gerais and Espírito Santo, and 10% in São Paulo and Rio de Janeiro, excluding the capitals.
With approval in the Chamber, the project — which creates the so-called Streaming Regulatory Framework — now goes for new analysis in the Federal Senate.
*With information from Estadão Conteúdo
