Lula approves legal framework for electronic games in Brazil.
President Luiz Inácio Lula da Silva sanctioned, this Friday (3), the legal framework for the electronic games industry. The so-called Games Legal Framework regulates the manufacture, import, marketing, development of electronic games and their commercial use in Brazil. The sanction was published in the regular edition of the Official Gazette of the Union this Monday (6).
"I have signed into law the bill that creates the legal framework for the video game industry. This will establish principles and guidelines for the economic sustainability of the sector, including the interaction of video games with specific legislation in the cultural sector, extended tax incentives for the segment, and guidelines for the protection of children and adolescents," President Lula highlighted in a social media post.
The new legislation was approved approved by the National Congress last month.
According to the law, electronic games include software (computer programs), images generated from the connection with the player, known as a gamer ; video game console games and virtual reality (VR), augmented reality (AR), mixed reality (MR), and extended or immersive reality games, whether the gamer downloads the game ( downloads the game and saves the file on that electronic device, such as a smartphone or compression device) or via streaming , which allows the game to be played without needing to download a file. Electronic gambling, betting, online poker, and other games involving cash prizes are not included in this category of gamers .
“The sector's expectation with the sanction is that we can see investments and opportunities in the area multiplied. It is estimated that, within the next three years, we will see an influx of R$ 200 million to R$ 300 million annually in private investments in the sector, a two- to three-fold increase in the total number of employees in the sector in the next decade, and therefore, the creation of opportunities that place Brazil in a more prominent position in the global production cycle,” stated Márcio Filho, president of the Association of Digital Game Developers of the State of Rio de Janeiro and specialist in games and society.
children and teenagers
According to the text, the industry, through game developers , must protect children and adolescents from exposure to violent or abusive games. Furthermore, the framework provides for the creation of channels for complaints and reports of abuse to ensure the rights of this audience in the digital world, and purchasing tools must seek the consent of the guardians of child and adolescent users.
Another point raised by the substitute text is the possibility of electronic games being implemented in the National Digital Education Policy, being used in schools as a form of teaching, with the creation of a free-use repository, in accordance with the National Common Curriculum Base (BNCC).
Incentives for the sector
The bill signed into law by President Lula seeks to regulate all relevant aspects of production. According to the text, the video game industry will benefit from incentives to boost the sector's economy and tax breaks similar to those provided for the cultural sector under the Rouanet Law and the Audiovisual Law, in order to stimulate content production, with reductions in taxes such as the Tax on Industrialized Products (IPI) on equipment necessary for game development.
The new legal framework also regulates the activities of technology professionals. Everyone involved in the development of electronic games will be included in categories such as individual micro-entrepreneur and in the Brazilian Classification of Occupations of the Ministry of Labor and Employment.
Furthermore, video game companies in the country will be formally recognized through the creation of a National Economic Activity Code related to gaming-related activities.
Companies, sole proprietors, or micro-entrepreneurs may also receive special treatment under the Inova Simples regime, the Simples Nacional tax regime, as well as through partnerships with scientific, technological, and innovation institutions.
