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Hot Topic – Hybrid model of collection of the Condencine

The Superior Council of Cinema approved the proposal of a hybrid model of collection of the Contribution for the Development of the National Cinematographic Industry (Condecine), a tax collected from the audiovisual sector, over the Video On Demand service (VoD).

According to the proposal, VoD providers may choose to collect the Condecine over the number of audiovisual works made available at their catalogs in Brazil or in the form of a flat fee per subscriber/transaction of the VoD service. The proposal also provides a tax reduction to foster Brazilian content on VoD platforms, which will be defined according to the quantity of Brazilian audiovisual works made available on the catalog. In addition, Condecine will not be charged from companies registered in the Simples Nacional (a special tax regime for companies with annual revenues up to R$ 4.8 million).

The approved text presents clearer concepts about VoD services, and excludes from the definition of VoD the services performed by Pay Tv operators and broadcasters that functions as TV Everywhere – a service that allows to audiovisual content to be played out of the home environment. The proposal will be reviewed by members of the Superior Council of Cinema and is subject to changes before being submitted to Congress as a bill of law.