Financing:

Brazil has various laws whose goals are to sponsor cultural production, including film, through tax rebate refundable sponsorships. The most important ones deal with income tax and VAT for products sales
(called ICMS, in Brazil), though there are also municipal taxes, such as services and property taxes.

The film “World Food Crisis” has just been approved by the national film board (Ancine) to use the mechanisms established by law 8,685/93 in its Article 1A, which allows companies to invest up to 4% of their annual income tax (IRPJ) in film production with 100% tax refundability. The fiscal year in Brazil runs from January through December.

All sponsorships must be made until December 30th, excepting for special circumstances, when investments may be made until January 31st of the following year but still pertain to the previous fiscal year.

The film is budgeted at R$ 756.975,12 with R$ 719.126,36 open to sponsors.

This is an illustration of how to calculate the maximum legal limit for investments benefiting from Article 1A of law 8,685/93: