Brazil to Start Taxing VOD Contents

National Telecommunications Agency (ANATEL) is reportedly evaluating ways to make online content distributors to pay taxes through CONDECINE.

SANTIAGO DE CHILE – The Brazilian government has decided to demand VOD companies to adapt to a new fiscal scenario and pay taxes on the content they distribute online, according to a report by Agencia Brasil.

“We’re going to kick-start the debate”, said ANATEL chairman Joao Rezende, who will meet with Manoel Rangel, head of Brazil’s film institute ANCINE, to develop a way for VOD companies such as Netflix and Apple to pay taxes on their series and film offers.

“I don’t consider this to be a matter of regulation but of determining the best way to tax them”, he added.

Rezende also noted this is an unfair scenario for PayTV companies, since they pay full taxes while VOD carriers don’t. "They're competing in a disloyal way, because they are not paying traditional taxes, so this creates a problem. We will have to think hard, because it's not a simple issue", he said.

According to Tela Viva, in the past two weeks major VOD companies like Netflix and Apple were contacted and instructed to register the contents they distribute online. The registration process demands a CONDECINE (Contribution to the Development of the National Film Industry) approval based on a fee that varies depending on conditions such as the country of origin, around R$3000 for feature-length films and R$ 750 for each episode of a series.