Sport Tax Incentive
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The law n. 11.438/2006 provides tax incentives and benefits that promote sports activities. As from the calendar year 2007 and up to the calendar year 2015 both physical and legal persons will be eligible to receive this benefit. In the case of legal persons, the benefit is specific for taxpayers that pay taxes based on the real profit. This benefit does not exclude or reduce the other tax benefits or deductions in force.

In the case of the legal persons, the benefit is limited to 1% of the due tax, not being considered the amount paid as the additional value of the profit tax (10% over the amount exceeding R$ 20,000 monthly). In the case of the physical persons, the benefit is limited to 6% of the due tax in the Yearly Balance Declaration together with the deductions of the incentives of the “Incentivos da Criança e do Adolescente” (Child and Teenager Incentive) of the “PRONAC” (Culture Promotion National Programme) and of “Audiovisuais” (Audiovisuals) (article 22 of Law nº 9.532/97)

Although it is a tax incentive, the amounts corresponding to the donations and the sponsorships are not deductible for the determination of the income and the basis calculation of the Social Contribution on the Net Income- CSLL, being this latter directly calculated for the total amount of the due income tax. It is important to mention that the amounts assigned for the sponsorship or donation in favor of projects that benefit a physical or legal person linked to the donator or sponsor are not deductible whatsoever.

It is also prohibited the use of resources coming from these incentives for the payment of the remuneration of the professional athletes, whatever the sport modality it might be, as well as the payment of any other expense related to the maintenance and organization of sport teams or Paralympic sports teams with high performance or sport teams of professional competitions.

In order to request the benefit, it is necessary to register the sport project or Paralympic sport project in the Sport Ministry which, after the proper evaluation and approval, will monitor such event and will also keep the “Receita Federal do Brasil” (Brazilian Federal Tax Department)- RFB- informed about the amounts that correspond to the donation or sponsorship.


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