(Law No. 8,313 of December 23, 1991)
The tax incentive mechanism is one way of stimulating private sector support for the cultural sector. The tenderer submits a cultural proposal to the Ministry of Culture (MinC) and, if approved, is authorized to raise funds from natural persons paying Income Tax (IR) or taxable companies based on the actual profit for the execution of the project.
Encouragers who support the project may have the total amount disbursed deducted from the tax due, within the percentages allowed by the tax legislation. For companies, up to 4% of the tax due; For individuals, up to 6% of the tax due.
The deduction competes with other federal tax incentives, without, however, establishing specific limits, which can be applied in its entirety in the incentive to culture. The option is the taxpayer.
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