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Hot topic – Service tax for streaming services

As from January 1, 2018, the City of Rio de Janeiro will charge service tax for streaming services of music and video.

According to Law 6,263/17, a 2% tax will be levied on services of processing, storaging or hosting of data, texts, images, videos, electronic pages, applications and information systems, among others, in addition to services of making such content available without definitive transfer.

Other cities, such as Palmas, Porto Alegre and Recife already collect this tax. São Paulo, Belo Horizonte, Salvador, Cuiabá, Florianópolis and João Pessoa currently wait for approval of the respective law authorizing such collection.