The Federal Senate approved the extension of the Tax Regime for the Development of Cinematic Exhibition Activity (Recine). The text guarantees the extension of the use of the tax benefit for the construction of movie theaters until the end of 2019. The Bill will proceed for presidential sanction.
According to the Minister of Culture, Sérgio Sá Leitão (photo), the audiovisual sector will be able to develop both in exhibition and in content production. “It is a victory for Brazilian culture that we should celebrate,” he declared.
The Recine ensures the granting of tax incentives to individuals and legal entities that invest in the construction of movie theaters, with priority for medium-sized municipalities, and in independent audiovisual production.
The measure stipulates that operations for acquisition in the domestic market or import aimed at the implementation or modernization of movie theaters shall be exempt from all federal taxes – Import Tax, Tax on Industrialized Products, Contribution for PIS/Pasep, Cofins, PIS-Import and Cofins-Import.
Between 2012 and 2016, through Recine, 1,036 screening rooms were established in Brazil, expanding the film industry towards the interior of the country.
Source: Portal Brasil