Tax News: Streaming - Rio de Janeiro | KPMG | BR

Tax News: Streaming - Rio de Janeiro

Tax News: Streaming - Rio de Janeiro

Streaming and advertising added to the list of services taxed by the Municipal Service Tax (ISS) in the city of Rio de Janeiro

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Tax News: Streaming - Rio de Janeiro

On October 16, 2017, the City of Rio de Janeiro published Law 6,263/2017, which amends the Municipal Tax Code of Rio de Janeiro (Law 691/1984), with the aim of aligning it with the recent changes made by Federal Complementary Law 157/2016.

Complementary Law 157, published in December 2016, introduced a number of changes to the levy of Municipal Service Tax (ISS), principally, widening the types of activities / services subject to ISS (as per our Tax News dated January 6th, 2017 – click here).

Law 6,263/2017 specifically adds number of activities to the list of services subject to ISS in the Municipality of Rio de Janeiro. These include: 

  1. “streaming”, that is, the provision of audio, video, image and text content via the internet without any definitive assignment of the content (item 1.09), at a 2% rate;
  2. advertising, which consists on inserting texts, images, drawings and other marketing and merchandise contents in any media (except books, newspapers, journals and through broadcasting services and free of charge reception of images and sounds) (item 17.24), at a 3% rate; 
  3. processing, storage or hosting of data, texts, images, videos, electronic pages, applications and information systems, among other formats, and similar (item 1.03), at a 5% rate; and 
  4. development of computer programs, including electronic games, regardless of the constructive architecture of the machine on which the program will run, including tablets, smartphones and similar (item 1.04), at a 5% rate. 

The modifications above should enter into force in January 2018, 90 days after the publication of the Municipal Law, and confirm the tendency of the Municipalities to apply ISS levy to streaming, advertising services and other activities.

Companies carrying out streaming and advertising activities should carefully consider the impact of these changes. Specifically, companies should proactively consider the need to register for ISS payment (if any) in the relevant municipality to avoid the potential double taxation of ISS (i.e. in cases where service providers are located in different Municipalities to the recipient). 


Click here to access the Portuguese version.

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