Brazil’s Lower House Sends Streaming Regulation to Senate, Reinstates Remittance Tax

Overview

• PL 8889/17 creates a progressive Condecine-Streaming on gross revenue ranging from 0.1% to 4%, with an exemption for providers earning up to R$4.8 million and a 0.8% cap for content‑sharing platforms without deductions.
• Platforms must keep at least 10% Brazilian works in catalogs with an emphasis on independent productions, with new flexibility introduced for lower‑revenue providers that will be detailed in regulation.
• Services can deduct up to 60% of the contribution by investing in Brazilian content or training, with provisions that allow larger reductions in specific scenarios to be defined by regulation.
• Lawmakers restored Condecine-Remessa on overseas transfers tied to streaming revenues, with the Culture Ministry highlighting an 11% rate and an exemption for services that reinvest 3% in independent Brazilian works.
• Ancine and the Federal Revenue will oversee compliance with fines up to R$50 million, a phased rollout sets Condecine obligations in about 60 days and broader measures by 180 days, regional earmarks allocate at least 30% to North/Northeast/Center‑West, and industry group Strima criticized the text for creating market asymmetries.