Brazil: Streaming and advertising subject to tax | KPMG | GLOBAL
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Brazil: Streaming and advertising services subject to service tax

Brazil: Streaming and advertising subject to tax

Application of the service tax (Imposto sobre Serviços—ISS) has been extended to activities including streaming and advertising, and a standard, uniform rate of service tax has been established at 2%.


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Municipal tax

The service tax is a municipal tax (imposed at the municipal level), but general guidelines and a list of services or activities subject to the service tax are provided under federal law in Brazil. 

Federal law changes

A federal law (Lei Complementar Federal 157/2016) published in late December 2016 introduces changes to the rules relating to the service tax. Among the provisions is a new list of services that are subject to the ISS: 

  • Services that are provided or made available through the internet—streaming activities 
  • Advertising text, images, or other merchandise made availalbe through broadcasting services 
  • Development and design of computer software (including games)

Uniform rate of service tax

New measures also provide a uniform rate of service tax, to be applied at 2% by all municipalities. No tax exemptions, incentives or other measures can be introduced by any municipality that would effectively provide for a lower rate of service tax. 

Municipalities are being allowed one year from 30 December 2016, during which time they must amend their laws to reflect the standard 2% rate of ISS. Municipalities also must amend their local laws to reflect the new ISS rules for streaming and advertising services.


Read a January 2017 report prepared by the KPMG member firm in Brazil

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