Ministry of Good Citizenship publishes a new instruction about the Rouanet Law

The main change establishes a ceiling of R$ 1 million for financing cultural projects, rather than the previous limit of R$ 60 million

Luci Ribeiro and Guilherme Sobota, O Estado de São Paulo

April 24 | 8:13 am

Updated April 24 |9:56 am

BRASILIA – The Ministry of Good Citizenship formalized in the Official Diary of the Union (ODU) this Thursday, April 24 new rules for the Cultural Incentive Law, the Rouanet Law, which were announced by Minister Osmar Terra in the beginning of the week.

The most waited for change was the limitation of projects to a ceiling of R$ 1 million, which really did occur, but with exceptions. Projects for annual and multi-year activities; material and immaterial cultural heritage; museums and memorials; the conservation, construction and implementation of cultural equipment of “recognized cultural value by the technical area of the Ministry of Good Citizenship”; and the construction and maintenance of cinemas and theaters in municipalities with less than 100 thousand inhabitants are not included in this ceiling of R$ 1 million. The Normative Instruction does not make clear what is the limit in these cases.

Projects which were executed entirely within the North, Northeast and Center-West regions will have double the limit under the new rules (R$ 2 million). New projects in the South and the states of Minas Gerais and Espirito Santo will have a 50% greater limit of R$ 1.5 million. A similar change was already implemented by Normative Instruction 5/2017 (the differences were between 25% and 50%).

In regard to proposing companies, the rules are as follows: individual microentrepreneurs (MEI) and individuals can present up to 4 active projects, with a total limit of R$ 1 million. Other individual companies (EI) can have up to 8 projects totaling R$ 6 million. Individual Companies of Limited Responsibility (EIRELI), Limited Societies (Ltda.) and other companies can present up to 16 active projects with a total of R$ 10 million.

Some specific projects now have a ceiling of R$ 6 million. According to the Normative Instruction, they are projects that involve the “inclusion of handicapped people, educational projects in general, awards and research; operas, festivals, symphonic concerts, festive parades and stable corps; commemorative national dates with specific calendars; and literary events, actions that stimulate reading and exhibitions of visual arts”.

Minister Osmar Terra made a point of advising entities that use these resources for renovations or maintenance, as some museums do, that they will no longer be able to do so. Photo: André Dusek/Estado de São Paulo

The new Normative Instruction also establishes specific limits for audiovisual projects. Festivals and events can solicit funds in their first edition of up to R$ 400 thousand. Beginning with the second edition, the value solicited will be evaluated based on the history of the greatest financial contributor of the candidate.

Short films will have a limit of R$ 200 thousand, and medium-length features R$ 600 thousand.

NI foresees that, for audiovisual project proposals in competitive grants or sponsorship contracts that guarantee 50 % of the value solicited, greater values will be accepted “as long as they are in accordance with the prices practiced by the market.”

The alterations are contained within a normative instruction which regulates the procedures of presentation, reception, analysis, testing, execution, monitoring, and presentation of the accounts and the evaluation of the results of projects presented under the law’s jurisdiction.

According to the NI, the cultural actions and corresponding documentation will continue to be presented by individuals or companies through the Support System for the Cultural Incentive Laws (Salic), which is available on the Special Secretariat of Culture website.

During the registration, the applicant needs to prove activities in the cultural area, and in the case of companies, it should have its cultural nature confirmed by its CNPJ and the CNAE activity classification code. The period for presentation of cultural proposals will run from February 1 to November 30 each year.

You can read the NI in its entirety here.

Link para a íntegra da IN: