Netflix arrived in Brazil offering a competitive price and conquered a part of the public, but that may be about to change. The company, along with others that offer content distribution via streaming, or OTT (Over-the-Top), may start to be taxed by the government.
The intention was confirmed by the Minister of Communications, Paulo Bernardo, during ABTA 2013. He listens to many complaints from companies like NET, which operate in Brazil and need to deal with the high burden of national taxes and local legislation, according to Exame Portal.
“The pay TV sector complains and is right. They provide services in Brazil and do not have the service fees like quotas for national content or pay taxes. The money goes directly there (USA), we are like a tax haven”, he said, stressing that the process will not be quick, but that it is already under discussion. France and Germany are also working on a way to tax the service, he points out.
NET’s president, Jos Flix, believes that there is a tax asymmetry and unfair competition, since companies like Netflix “don’t even have headquarters in Brazil, they don’t pay taxes and they don’t even bother to translate the site into Portuguese” , remembering that they also offer the same content.
Joo Rezende, president of Anatel, also points out that all services of this type must be treated equally, remembering that companies operating in Brazil must have local content, for example.
Streaming Netflix taxes