Mega events and new law should leverage SP sports sector
DCI
Companies of the State of São Paulo that pay State Sales and Service Tax (ICMS) may allocate between 0.01% and 3% of the tax owed to sports projects approved by the Secretariat for Sports, Recreation and Tourism of the State of São Paulo (Selt). The Law of Incentive to Sports shall come into force within 15 days, according to the Vice-President of the Chamber of Renderers of Services of the Brazilian Association of the Sports Industry, Marcelo Rezende. The Executive Superintendent of Sports of the Brazilian Olympic Committee, Marcus Vinícius Freire, explains the law is an important instrument to maintain sports investments in the State.
Marcelo Rezende said entrepreneurs have gladly received the law. "Many companies have already expressed interest", he said. "They obviously want to take advantage from an important benefit for the strategy of communication of that company, which may sponsor events through the law of incentive and then activate the sponsorship through its own marketing budget". This year the limit for the use of the tax incentives in the State will be R$ 60 million (US$ 33.3 million). From next year on, however, the ceiling of the law shall correspond to 0.2% of the part of the State of the annual collection of the ICMS for the immediately preceding year.
The Decree No 55,636 that regulates the Law of Incentives to Sports was signed by Governor José Serra on March 26, 2010. In accordance with the law, entrepreneurs may finance projects in seven areas: Education; Sports Training; Performance; Socio-sportive; Participatory; Sports Management and Development; Infrastructure. The certification of projects will depend on the Committee of Analysis and Approval of Projects (CAAP), made up of six members appointed by the Selt. Each applicant may submit no more than three projects for analysis.
Besides the Law of Incentive, the sports sector of São Paulo should be also pushed by the holding of the Olympics and the FIFA Soccer World CupTM. Marcelo Rezende said that, even being held in Rio, the 2016 Olympics should have São Paulo as the main supplier of products and services for the event in the country. "There is a study that says that in every host country, 51% of financial operations take place outside the host-city. If the State represents nearly 60% of the economy of the country, we can be absolutely sure the role of São Paulo is much greater than that of any State of the country, notwithstanding regarding the rendering of services, of equipment of the industry, or in the generation of business", said Rezende. Marcus Vinícius also said that, besides being the main supplier of the event, the capital of São Paulo should be one of the main places of adaptation for the teams during the Olympics.