Brazil may amend pic-pay TV tax reg
U.S. studios have taken legal action to oppose new scheme
The package now includes an amendment that dramatically reduces the levies imposed on pay TV programmers. However, several U.S. studios have taken legal action to oppose the new tax scheme.
In September, President Henrique Cardosa issued a temporary measure that created film agency Ancine and established taxes, known collectively as Condecine, to fund local film production, distribution and exhibition.
Keeping it in country
Condecine calls for foreign studios to pay an 11% tax on the remittances from local subsids to headquarters -- but the coin also can be invested directly in local production. On the distrib side, a 3,000 reais fee ($1,300) will be levied per imported film per window (theatrical, homevideo and broadcast), up from $600. Programmers were exempted from import fees, but were to have paid $870 per feature and $195 per series episode.
The amended version calls for pay TV programmers to pay a flat 3% tax into a special bank account. They will have 270 days to invest the money in local production or the sum will be transferred to a fund managed by Ancine.
On the studio front, Motion Picture Assn. membership has been divided over how to respond; there is no official position by the org.
In late March, Warner won a preliminary injunction against paying the new tax. Paramount, Universal, Fox and MGM filed a joint motion and are awaiting the court's response.
