Thursday, October 8, 2015

Reading … Government of São Paulo will tax software downloaded over the … – IGN Brazil

Despite the national games market is hanging on as it may, this is not being an easy year for Brazilian consumers of electronic games. Between increases in the prices of consoles and games and the tremendous appreciation of the dollar, enjoy one game walks weighing enough in our pockets. And it seems that things can get worse.

According to a report published on the site Econômico, the state government of Sao Paulo changed the ICMS tax base for software. With this change, products purchased by digital means, without physical media, will also be taxed. The measure shall enter into force in January 2016.

The software ICMS rate was already 18%, but the state only apply this tax to physical products sold in stores. With the new decree (61522, 2015), the ICMS will now be calculated based on price of software.

This would affect, among other products, games sold through digital distribution networks as PSN, Xbox One, Steam and others. Currently, the software obtained via download (including applications for smartphones) represent over 98% of the market, according to the Brazilian Association of Software Companies (ABES). The state of São Paulo, in this case amounts to approximately 40% of this value.

It is worth noting, however, that the change is being heavily criticized by the companies producing software and tax lawyers. According to the report of the Economic Value, these sectors have begun to prepare arguments to overturn the decree in court. “If assessments are made, companies will defend in court,” said the counsel of Abes, Manoel Antonio dos Santos.

How (and how much) it will affect the price of the games they buy digitally? We will have to wait until next year to find out. The IGN Brazil will continue to investigate the situation and bring more news in the coming days.

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