“Netflix tax” could bring the state about 1.2 million euros

In October 2020 the Films Act was revised. However, the highlight was the introduction of a new 1% annual fee for streaming platforms (Netflix, HBO, Disney + and Amazon), as well as the time set for the transmission of pornographic content.

According to the latest figures, the state expects to raise around € 1.2 million at this new rate, dubbed the Netflix rate.

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Account 44 / XIV already approved approved October 2020... Considering that streaming platforms (Netflix, HBO, Disney +, Apple +, and Youtube) are charged a fee of 1% (“netflix commission”) on revenue, the Institute for Film and Audiovisual (ICA) estimates it will bring from 1 million and 1.2 million euros. The assessment was sent to the ECO by the ICA official source.

In line with the provisions of the new Cinema Act regulation and in particular with respect to the 1% rate applied to operators of audiovisual services on demand by subscription, ICA estimates the revenue forecast for 2022 at 1.0 [milhões] and 1.2 million euros

The proceeds from the collection of this Netflix fee are returned to the Instituto do Cinema e Audiovisual (ICA) own revenues. If it is impossible to determine the amount of the corresponding income of these operators, "the annual fee is assumed to be one million euros.".

As stated Here, streaming platforms Netflix, HBO, Disney +, Apple + and Youtube will continue to have commitments to invest in film and audiovisual media in Portugal, similar to what is already happening with other operators.

It has been established that the investment obligations are fulfilled with “complete freedom of choice” and, if it is not possible to determine the amount of the respective income of the operators, the annual investment value is set at four million euros.

ICA's 4% TV ad view fee now includes services from video sharing platforms such as Youtube. Subscription fees for television services provided by, for example, NOS, MEO and Vodafone remain unchanged.

Another measure is related to pornographic content. Under the new law, this type of content can only be streamed across video sharing channels and platforms from 0:00 to 6:00.

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