KNOWING THE INCENTIVE LAWS IN BRAZIL, IMPORTANT TOOLS FOR YOUR ESG REPORTS!

It's the people's money, coming out of the government's pockets to reach the people themselves. The tax incentive laws are instruments used by the government to stimulate development, education, quality of life and the realization of projects through tax waivers.

por NTICS | 19 de July de 2022

It’s the people’s money, coming out of the government’s pockets to reach the people themselves. The tax incentive laws are instruments used by the government to stimulate development, education, quality of life and the realization of projects through tax waivers.

It works like this: the public power gives up part of the resources it would receive to encourage the execution of initiatives for the benefit of society. Investors, in turn, embrace causes that align with their values and transform lives.

Brazil has had incentive law programs since 1991. All companies taxed under the real profit regime can allocate up to 4% of their Income Tax, and individuals can incentivize with up to 6% of their Income Tax, if they declare in the complete model. According to the Federal Revenue, there are 545,000 companies in Brazil that qualify for Real Profit, that is, able to use the federal tax incentive laws, however, only 5% have contributed to the most famous law in Brazil, the Federal Law of Incentive to Culture. The most worrying thing is that 90% of Brazilian companies do not take advantage of all the tax benefits they have.

TAXES:

Deductions are made from the Income Tax (IR), in the case of federal incentive laws. In the state incentive laws, the tax incentive is carried out through the ICMS and in the municipal ones, through the IPTU or ISS.

KNOWING THE LAWS:

Federal Cultural Incentive Law: nicknamed the Rouanet Law, it favors cultural projects: concerts, publications, plays, music and dance festivals, among others. According to a survey by Fundação Getúlio Vargas, for every BRL 1 invested in projects under the Rouanet Law, BRL 1.59 is transferred throughout the production chain linked to the cultural sectors.

Federal Sports Incentive Law: Law No. 11,438/06 defines that the taxes collected must be used for renovations, constructions, championships and sporting events, among other sports-related activities. In this way, they reach initiatives that open doors for children, young people, adults and the elderly, encouraging the consolidation of sport as an instrument of social inclusion and access to quality of life throughout the country.

States and municipalities also have incentive laws to stimulate cultural production, the generation of jobs and income with the creative economy.

TRANSFORM LIVES – ETERNAL BENEFIT:

There are many benefits for companies that choose to support projects through incentive laws. And the first of them is to contribute to a fairer society, making cultural and social projects viable, with no impact on cash! In exchange for the contribution of resources, companies obtain relevant counterparts that impact their reputation:

1) Brand exposure in publicity materials;

2) Quotas for tickets for shows;

3) Public seals;

4) Recognition plates;

5) Quality advertising;

6) Achieving good corporate social responsibility practice goals.

A study by Nielsen Holdings points out that 77% of consumers in Latin America prefer to purchase products from socially responsible corporations.

By supporting projects via incentive laws, your company gets involved with the surrounding community, impacts lives, enables education and health, and achieves the goals of the UN’s Sustainable Development Goals. By uniting your business with positive, sustainable and transformative projects, your brand is strengthened, attracting consumers and investors impacted by social responsibility and improving your image.

More than producing, making a difference is the greatest legacy your organization can create. Grow without leaving anyone behind.

For 20 years transforming lives, promoting sustainable development through innovative projects and solutions. Since its foundation, NTICS Projetos has developed more than 1,000 projects, impacting about 10 million people, always with the priority of promoting SDG 4 (Quality Education). And we want more! Our ambition is to bring innovative and sustainable projects to more than 3.7 million children and adolescents (10% of students enrolled in public education in Brazil) by 2030.

All projects are digital, which allows teachers and students from anywhere in the world to access and download all the material already produced and apply it, becoming multiplying agents.

Discover our solutions to raise your company’s indexes www.nticsprojects.com

Whatsapp | E-mail: contact@nticsprojects.com | Phone +1 (407) 258 3604

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