Legal Framework for Games is now law

President Luiz Inácio Lula da Silva (PT) announced the sanctioning of the Legal Framework for Games, a bill that defines a new set of rules for the electronic games industry in Brazil. This framework represents a significant step towards the formalization and expansion of the games sector in the country, promising not only to foster local development, but also to attract substantial foreign investment.

Approved after intense debate and several modifications since its initial presentation in 2021, the new legislation classifies game development as a cultural activity. This allows the industry to benefit from tax incentives provided by the Audiovisual Law and the Rouanet Law, which until now were applied predominantly to cinema and other forms of traditional media.

With the sanction of this bill, companies that invest in Brazilian developers will be able to write off up to 70% in taxes related to the licensing and production of games. "We estimate that over the next three years we will see 200 to 300 million reais a year in private investment in the sector," said Márcio Filho, president of the Rio de Janeiro State Digital Games Developers Association.

In addition to tax incentives, the legal framework also aims to protect children and adolescents by integrating safety measures, such as a reporting system and age rating, which help to monitor online violence and control in-game purchases. These guidelines seek to guarantee a safe and accessible gaming environment.

Another significant innovation is the inclusion of electronic games in the National Digital Education Policy, proposing their use as an educational tool in schools. This will be supported by the creation of an open access repository, aligned with the National Common Curriculum Base (BNCC), thus promoting a broader integration of games in the educational context.

The Games Legal Framework also brings structural changes for the business sector, such as the regularization of specific MEI categories for electronic games professionals and the creation of a specific economic activity code for companies in this industry. In addition, companies will be able to benefit from the Inova Simples regime and establish partnerships with research and innovation institutions.

This legislation is a response to calls for regulation in the sector and is seen as just the first step in a broader process that seeks to establish an ongoing dialogue with the government to promote regulation that catalyzes the expected economic growth.

With the implementation of the Legal Framework for Games, Brazil is expected to position itself more prominently in the global production cycle for electronic games, creating new job opportunities and stimulating the national creative economy. This is a decisive moment for the games industry in Brazil, which now looks to a future of expansion and innovation with renewed optimism.

My favorite games are visual novels.
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