Zona de Azar Brazil – Maia Yoshiyasu Advogados: Legal Framework for Electronic Games Sanctioned in Brazil

Brazil.- 06th May 2024 www.zonadeazar.com President Luiz Inácio Lula da Silva promulgated Law No. 14,852/24, which establishes the legal framework for the electronic gaming industry in the country.

The bill, originating from Bill No. 2796/21, was approved by the Chamber of Deputies in April and underwent modifications in the Federal Senate.

Published in the Official Gazette of the Union on Monday (6th), the law had only one veto from the president, related to the deduction of 70% of Income Tax for companies investing in independent Brazilian games.

The legislation regulates aspects such as manufacturing, importing, marketing, and developing electronic games, excluding those related to gambling.

Key points include:

• Tax Incentives: The legislation provides tax incentives for the electronic gaming industry, similar to those applied to the cultural sector. This includes benefits such as reducing taxes like the Excise Tax (IPI) on equipment necessary for game development.
• Regulation of Customs Clearance and Import Tariffs: The government will be responsible for regulating customs clearance and import tariffs for electronic games to promote innovation in the sector. These measures aim to facilitate the entry of equipment and materials necessary for game development.
• Special Treatment for Individual Entrepreneurs and Microentrepreneurs: The law provides special treatment for individual entrepreneurs and microentrepreneurs who develop electronic games. This may include specific tax benefits and easier access to entrepreneurship and innovation incentive programs.
• Protection of Children and Adolescents: The new legislation includes measures to enhance the protection of these users. Games aimed at this audience must consider their interests and ensure environments free from violence and exploitation. Additionally, game providers must implement complaint and reporting systems to ensure the safety of younger users.
• The regulation also encompasses segment professionals, aiming for their inclusion in technology and innovation promotion policies, such as encouraging the creation of vocational courses and research incentives.

The Maia Yoshiyasu Advogados team is available to answer any questions regarding the subject.

Edited by: @MaiaDigital www.zonadeazar.com