Provisional Measure extends benefits of Recine and the Audiovisual Law until 2029

The Provisional Measure (MP) was published last Tuesday (24) which extends to December 31, 2029 the deadline for using the tax benefits of the Special Taxation Regime for the Development of Cinematographic Exhibition Activity (Recine), previously scheduled for be closed at the end of this year.

Recine allows the exemption of federal taxes on purchases aimed at the implementation or modernization of cinema screening rooms, mainly in smaller cities or in the interior.

MP 1,280/2024 also extends the tax incentives of the Audiovisual Law until the end of 2029, allowing individuals and legal entities to deduct from Income Tax (IR) amounts that financed cinematographic and audiovisual production projects approved by Ancine.

In addition, individuals or legal entities may deduct from income tax the amounts applied to the acquisition of shares in the National Film Industry Financing Funds (Funcines).

The MP also updates the ceiling for the contribution of financing funds and incentives provided for in the Audiovisual Law – to R$21 million in total, compared to R$7 million previously, with annual correction for inflation.

(With Câmara Agency and Senado Agency)