Excerpt from Law 8,313 – Federal Law on Cultural Incentive

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This document has been provided by the
International Center for Not-for-Profit Law (ICNL).

ICNL is the leading source for information on th e legal environment for civil society and public
participation. Since 1992, ICNL has served as a resource to civil society leaders, government
officials, and the donor community in over 90 countries.

Visit ICNL’s Online Library at
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for further resources and research from countries all over the world.

Disclaimers Content. The information provided herein is for general informational and educational purposes only. It is not intended and should not be
construed to constitute legal advice. The information contai ned herein may not be applicable in all situations and may not, after the date of
its presentation, even reflect the most current authority. Noth ing contained herein should be relied or acted upon without the benefit of legal
advice based upon the particular facts and circumstances pres ented, and nothing herein should be construed otherwise.
Translations. Translations by ICNL of any materials into other languages are intended solely as a convenience. Translation accuracy is not
guaranteed nor implied. If any questions arise related to the accuracy of a translation, please refer to the original language official version of
the document. Any discrepancies or differences created in the tr anslation are not binding and have no legal effect for compliance or
enforcement purposes.
Warranty and Limitation of Liability. Although ICNL uses reasonable efforts to include ac curate and up-to-date information herein, ICNL
makes no warranties or representations of any kind as to its a ccuracy, currency or completeness. You agree that access to and u se of this
document and the content thereof is at your own risk. ICNL discl aims all warranties of any kind, express or implied. Neither ICNL nor any
party involved in creating, producing or delivering this document shall be liable for any damages whatsoever arising out of access to, use of
or inability to use this document, or any e rrors or omissions in the content thereof.

This document has been provided by the
International Center for Not-for-Profit Law (ICNL).

ICNL is the leading source for information on th e legal environment for civil society and public
participation. Since 1992, ICNL has served as a resource to civil society leaders, government
officials, and the donor community in over 90 countries.

Visit ICNL’s Online Library at
https://www.icnl.org/knowledge/library/index.php
for further resources and research from countries all over the world.

Disclaimers Content. The information provided herein is for general informational and educational purposes only. It is not intended and should not be
construed to constitute legal advice. The information contai ned herein may not be applicable in all situations and may not, after the date of
its presentation, even reflect the most current authority. Noth ing contained herein should be relied or acted upon without the benefit of legal
advice based upon the particular facts and circumstances pres ented, and nothing herein should be construed otherwise.
Translations. Translations by ICNL of any materials into other languages are intended solely as a convenience. Translation accuracy is not
guaranteed nor implied. If any questions arise related to the accuracy of a translation, please refer to the original language official version of
the document. Any discrepancies or differences created in the tr anslation are not binding and have no legal effect for compliance or
enforcement purposes.
Warranty and Limitation of Liability. Although ICNL uses reasonable efforts to include ac curate and up-to-date information herein, ICNL
makes no warranties or representations of any kind as to its a ccuracy, currency or completeness. You agree that access to and u se of this
document and the content thereof is at your own risk. ICNL discl aims all warranties of any kind, express or implied. Neither ICNL nor any
party involved in creating, producing or delivering this document shall be liable for any damages whatsoever arising out of access to, use of
or inability to use this document, or any e rrors or omissions in the content thereof.

Law 8,313, of December 23 th, 1991 – Federal Law on Cultur al Incentive

Art. 18. Aiming to encourage cultural activities, the Union will allow individuals or legal entities to make
an option on invest ing a portion of the Income Tax, by way of donations or sponsorship, to direct ly
support cultural projects submitted by individuals or by legal entities with cultural purposes, or through
contributions to the FNC (Fund for National Culture), pursuant to art. 5, section II, of this Law, provided
that the projects meet the criteria set forth in art. 1 of this Law (Text by Law 9,874/99)
§1 The taxpayers may deduct from the income tax due the amounts actually spent on projects listed in
§3, previously approved by the Ministry of Cu lture, within the limits and conditions established in the
income tax law in force in the form of: (Included by Law 9,874/99)
a) donations and (Included by Law 9 ,874/99)
b) sponsorship. (Included by Law 9 ,874/99)
§2 The legal entities taxed based on actual profit may not deduct the amount of donation or
sponsorship referred to in the previous paragraph as an operating expense. (Included by Law 9 ,874/99)
§3 The donations and sponsorships in cultural production referred to in §1 will exclusively support the
following segments: (Text by Provisional Measure 2228 -1/01)
a) performing arts; (Text by Provisional Measure 2228 -1/01)
b) books of artistic, literary or humanistic value; (Text by Provisional Measure 2228 -1/01)
c) classical or instrumental music; (Text by Provisional Measure 2228 -1/01)
d) exhibitions of visual arts; (Text by Provisional Measure 2228 -1/01)
e) donations of collections for public libraries, museums, public archives and film libraries as well as
personnel training and acquisition of equipment for the maintenance of such collections;
(Text by
Provisional Measure 2228- 1/01)

f) production of cinematographic and videophonographic works of short and medium length and
preservation and dissemination of audiovisual collection; and
(Included by Provisional Measure 2228 –
1/01)

g) preservation of material and immaterial cultural heritage. (Include by Provisional Measure 2228 -1/01)
h) construction and maintenance of cinema and theater, which may also function as community cultural
centers in mun icipalities with less than 100,000 (one hundred thousand) people.
(Included by Law
11,646/08)

Art. 23. For the purposes of this law, it is considered:
I – (vetoed)
II – Sponsorship: the transfer of cash with a promotional purpose or the coverage , by the income tax
taxpayer, of costs or the use of goods or real estate of his own property without the transfer of its
dom inium to the implementation , by another person or legal entity , of a cultural activity referred to in
art. 3 of this law with or wit hout a profit purpose.
§1 It constitutes an infraction of this Law the recei ving by the sponsor of any material or financial
advantage as a result of the sponsorship performed .
§2 The transfers defined in this article are not subject to payment of Income T ax at source.

Art . 24. For purposes of this chapter are equivalent to donations according to the regulation s:

I – free distribution of tickets for events of artistic and cultural nature, by a legal entity to its employees
and legal dependents;
II – expend itures made by individuals or legal entities aimed at conserve, preserve or restore a patrimony
of its own or under their legitimate possession protected by the Federal Government, since the
following provisions are met :
a) Preliminary definition, by the Brazilian Institute for Cultural Heritage – IBPC, of the standards and
technical criteria that should govern the projects and budgets that this item refers to;
b) Prior approval, by the IBPC, of the projects and respective budgets for implementing the
cons tructions;
c) Subsequent certification by the referred body of the expenditures actually incurred and of the
circumstances for being the construction s executed according to the project s approved.

Art. 26. The donor or sponsor may to deduct from the income tax due on the statement of Income Tax,
the amounts effectively contributed to cultural projects approved under the provisions of this law based
on the following percentages: (see art. 5 and 6, item II, of Law 9 ,532/97)
I – for individuals, eighty percent of the d onations and sixty percent of sponsorships;
II – for legal entities taxed based on actual profit, forty percent of donations and thirty percent of
sponsorships.
§1 The legal entity taxed based on actual profit may deduct donations and sponsorships as operating
expense.
§2 The maximum amount of deductions referred to in the cap ut of this article shall be annually fixed by
the President of the Republic based on a percentage of the payable income of individuals and on the
pay able income of legal entities taxed based on actual profits.
§3 The benefits referred to i n this article do not exclude or reduce other benefits, rebates and
deductions in force, in particular donations to charitable organizations made by individuals or le gal
entities.
§4 (VETOED)
§5 The Executive Branch will establish a mechanism to preserve the real value of the contributions in
favor of cultural projects, regarding this chapter.

Art . 27. The donation or sponsorship cannot be made to a person or an institution connected to the
agent.
§1 Are considered connected to the donor or sponsor:
a) the legal entity of which the donor or sponsor is a holder, administrator, manager, shareholder or
partner, in the date of the transaction or within the prior twelve months;
b) the spouse, relatives up to third degree, includi ng collaterals and the dependent of the donor or
sponsor, or the holders, administrators, shareholders or members of a legal entity connected to the
donor or sponsor, pursuant to the preceding paragraph;
c) other legal entity of which the donor or sponsor is a partner.
§2 The n on-profit cultural institutions created by the donor or sponsor are not considered connected,
since proper ly constituted and function ing, as provided in the law in force. (Text by Law 9 ,874/99)