It is the people's money, coming out of the government's pockets to reach the people themselves. The fiscal incentive laws are instruments used by the government to stimulate the development, the education, the quality of life, and the realization of projects through fiscal resignation.
It works like this: the government 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 are aligned with their values and transform lives.
Brazil has had incentive law programs since 1991. All companies taxed under the Actual Profit regime can destine up to 4% of their Income Tax, and individuals can encourage with up to 6% of their Income Tax, if they declare in the complete model. According to the Internal Revenue Service, there are 545 thousand companies in Brazil taxed under the taxable income regime, i.e., able to use the federal laws of tax incentive, but 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
The deductions are made from the Income Tax (IR), in the case of federal incentive laws. In state incentive laws, the tax incentive is made through ICMS and in municipal laws, through IPTU or ISS.
KNOWING THE LAWS
Federal Culture Incentive Law: nicknamed the Rouanet Law, it favors cultural projects: concerts, publications, theater plays, music and dance festivals, among others. According to a survey by the Getúlio Vargas Foundation, for every R$ 1 invested in projects in the Rouanet Law, R$ 1.59 is moved throughout the productive chain linked to the cultural sectors.
Federal Law for Sports Incentive: the Law 11.438/06 defines that the taxes collected must be used for renovations, construction, championships, and sports events, among other sports-related activities. 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 and the generation of jobs and income with creative economy.
TRANSFORMING 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 possible, with no impact on the cash flow! In exchange for the contribution of resources, companies obtain relevant benefits that impact their reputation :
1) Exposure of the brand in promotional materials;
2) Ticket quotas for shows;
3) Public seals;
4) Recognition plates;
5) Quality advertising;
6) Achievement of good corporate social responsibility practice goals.
A study by Nielsen Holdings shows that 77% of consumers in Latin America prefer to buy products from socially responsible corporations.
By supporting projects through incentive laws, your company gets involved with the community around it, impacts lives, enables education and health, and reaches the goals of the UN Sustainable Development Goals. The union of your business with positive, sustainable and transforming projects strengthens your brand, 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.
