ISS-RJ Culture Incentive Law: understand the process for supporting sociocultural projects

Companies have the opportunity to promote sociocultural development in the city and, at the same time, strengthen its social responsibility policies

This year, from August 1 to 31, the city of Rio de Janeiro will be accepting registration of companies interested in supporting sociocultural projects through the Municipal Culture Incentive Law (ISS-RJ Law). By promoting these initiatives, the Supporting Taxpayer has the opportunity to strengthen its social responsibility policy and its actions as a citizen company.

Domingues e Pinho Contadores has been supporting projects through the ISS-RJ Law for many years. This is a way of contributing to the sociocultural development in the city where the company has its bigger office. In addition, DPC also offers support to clients that wish to sponsor these initiatives.

Understand how the cultural sponsorship works:

How does the Municipal Culture Incentive Law (ISS-RJ Law) work?

The law allows companies to encourage cultural projects previously approved by the city hall, directing to them 20% of the ISS due to the municipal government. The investment is based on the due amount. No extra costs are generated.

Understand how the amount directed to projects is calculated:

HOW MUCH ISS DID THE COMPANY PAY IN THE PREVIOUS YEAR?	In order to estimate the maximum amount of resources available for sponsoring cultural projects in the year, it is considered 20% of the total ISS paid by the company in the previous year.
THE CITY HALL INFORMS ABOUT THE BENEFIT LIMIT FOR EACH TAXPAYER	The value depends on the number of taxpayers registered. Every year the city hall determines the total amount directed to the projects by the city. If the number of taxpayers is too high, the funds available for each taxpayer will be proportional.

And how are projects selected?

SELECTION OF PROJECTS FOR ALLOCATION OF RESOURCES

More than 2000 projects are certified by the municipal government.   The supporter may choose from 19 sectors: visual arts, handicraft, audiovisual, libraries, cultural centers, cinema, circus, dance, design, folklore, photography, literature, fashion, museums, music, multiplatform, theater, transmedia, preservation and restoration of natural, tangible, and intangible heritage.

This choice should consider the company's purpose, its positioning and how it intends to use sponsorship compensation.

What are the steps of the process?

Check below the steps and schedule for this process in 2021:

Learn more about the steps here: Culture Incentive Law - ISS RJ: 5 steps for the companies support a project and strengthen its brand.

What are the advantages of joining the tax incentive?

Besides promoting collective well-being by helping sociocultural projects without affecting cash, the supporting taxpayer gets some compensations, such as: brand exposure in promotion material or cultural products, tickets for events, among others.

Check the benefits for the supporting taxpayer:

How may DPC help your company?

DPC helps companies both in operational proceedings (registration, formalization processes before the city hall and direction of ISS resources), and in the selection of projects aligned with corporate purposes, so that this move has the desired impact and adds value to the brand.