The Law allows resources from tax waivers to be applied to sports and para-sports projects. - Photo: Ministry of Citizenship
Changes seek to improve the Sports Incentive Law. The changes are in Ordinance 638/2021 published on July 15th. Executors and financers of sports and parasports projects through the Sports Incentive Law need to be aware because the measures are already in effect and change procedures for fundraising, execution and accountability of projects.
"These are important changes in the Law in order to improve the instrument we have, in order to facilitate, without losing our legal and administrative security so that we can increasingly do more and better with this important form of sports financing", he highlighted the national secretary of Sports Incentives and Promotion of the Special Secretariat of Sports of the Ministry of Citizenship, Leonardo Castro.
Check out some of the changes:
- All resources destined to sports and parasports projects must be, obligatorily, deposited from the donor/sponsor's account directly to the project's fundraising account. According to the Ministry of Citizenship, this recommendation was made by the Federal Comptroller General (CGU).
- The value of the capture can only occur up to the limit authorized by the Technical Commission of the Sports Incentive Law (CTLIE). What goes beyond that, it must be transferred to the National Treasury through a Union Collection Guide (GRU).
- In case of withdrawal from the execution of the project, the resources must also be returned to the Union. “We can file this project, but we will not be able to transfer these resources to another project”, explained Leonardo Castro. He pointed out that because of Covid-19, the execution of projects could be delayed.
- The proceeds from the application of the resources collected will be able to be used for the expenses of hiring people, which was previously prohibited. However, the use of these resources for expenses with medium activities and production expenses remains restricted. "We still do not automatically release these resources for items of medium activities and production expenses because there are percentages that are ceilings for these activities", detailed the secretary.
- The deadline for the final rendering of accounts is still 60 days, but if the proponent does not do it, it will not be able to transfer the remaining resources to another project. The objective is to encourage compliance with the presentation of benefits. In addition, the deadline for filing appeals in the rendering of accounts is extended from ten to five days.
- Fundraising can only take place up to the limit authorized by the Technical Commission of the Sports Incentive Law (CTLIE). The ordinance also allows that the minimum funding of 20% of the authorized amount is reached, it may continue during the execution of activities and the adjustment may also be requested within 60 days before the end of the Term of Commitment originally signed.
Sports Incentive Law
The Sports Incentive Law was enacted in December 2006 and allows resources from tax breaks to be applied to sports and para-sports projects across the country.
The objective is to expand the population's access to sport. Donations and sponsorships made through the law serve children, teenagers, young people, adults and the elderly, in addition to offering support so that high-performance athletes can participate and represent Brazil in national and international competitions. The presentation of projects should take place between February 1st and September 15th.
“It is the most democratic sports financing model that we have today in the country”, said Leonardo Castro.
Only in this Olympic cycle, between 2016 and 2021, the Law had 699 projects aimed at high performance approved for fundraising. The amount raised in this period was over R$640 million.
Do you want to know more about the Sports Incentive Law? Click here.
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