Own and Incentivized Resources

Brazilian law has mechanisms in place for direct investment by Natural or Legal entities that can be deducted up to certain percentages of taxes owed. The best known example is in the Culture area, with the so-called Rouanet Law. The understanding that ENGIE and other institutions share is that, for certain specific purposes, business or individual initiative can be more effective than the State’s – which, in such cases, operates by approving submitted projects and supervising the use of incentivized resources.
ENGIE examines funds invested through tax benefits with the same rigorous gaze that it applies to its own funds. In any case, ENGIE prioritizes the proposition of or support to projects with prospects of continuity and economic self-sufficiency after the initial funds injections, that are socio-economically sustainable, and that are in fact compatible with the purposes of tax incentives laws.

Benefits of Tax Incentives

Public funds invested in a participative manner

The community can select its own projects

Companies and citizens decide how to use a portion of their taxes

Culture, sports, health, senior citizens, youths and children benefit

Tax Benefit Laws

The tax incentive laws with the most benefits for communities of which ENGIE Brasil is a part are as follows.

Rouanet Law
Cultural Incentives Law 8.313/1991, also known as the Rouanet Law, allows natural and legal entities to support cultural projects by means of donations or sponsorships, while deducting a percentage from their income tax bill. Projects must undergo analysis and obtain approval from the Ministry of Culture to secure the benefit.

Sports Incentives Law
Sports Incentives Law 11.438/2006 allows natural and legal entities to invest a portion of their income tax bill in sports-related projects. These projects, in their turn, must be analyzed and approved in advance by the Ministry of Sports.

Children’s and Teenagers’ Fund (“Fundo da Infância e da Adolescência” – FIA)
The Children’s and Teenagers’ Fund (FIA) was created by Law 8.069/1990, which establishes the Statute of Children and Teenagers. Article 260 of the law, as amended by Law 8.242/1991, article 6, provides that natural or legal entities may deduct FIA Donations from income tax bills, up to certain percentages pursuant to the law.

Senior Citizens’ Fund
The National Senior Citizens Fund was formed by Federal Law 12.213/2010 as a means to fund senior citizen-oriented programs and actions. Natural and legal entities may deduct donations made to the institute from their income tax bills.

Law 12.715/2012 created the National Cancer Care Support Program (“Programa Nacional de Apoio à Atenção Oncológica” – PRONON) and the National Special Needs Persons Care Support Program (“Programa Nacional de Apoio à Atenção da Saúde da Pessoa com Deficiência” – PRONAS/PCD). The funds are intended to incentivize actions and services conducted and rendered by private-sector nonprofit entities, associations and foundations active in the fields of oncology and special needs persons.