Introduces new investment incentives for the gaming industry
03 May 2024
On 3 May 2024, Brazil enacted the Legal Framework for the Electronic Games Industry (Law No. 14,852), establishing a comprehensive legal foundation to support the growth of its gaming sector. The law provides clear definitions, recognises professional roles, and introduces financial incentives to encourage investment and development within the industry.
Key measures:
- Tax incentives for cultural production: Individuals may allocate up to 6 per cent of their income tax, and legal entities up to 4 per cent, towards investments in game production, receiving equivalent tax exemptions.
- Tax reductions for audiovisual production: A 70 per cent reduction in taxes on remittances abroad related to the licensing or exploitation of games is granted, provided the funds are reinvested in independent Brazilian game projects.
- Facilitation of equipment importation: The framework simplifies the import process for software development kits (SDKs) and reduces taxation on essential equipment and tools required for game development.
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Type:
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Promotion and facilitation (Investment incentives)
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Industry:
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Services (Publishing, audiovisual and broadcasting activities, Computer programming, consultancy and related activities)
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Sources:
