Unfair Gaps🇧🇷 Brazil

Artists and Writers Business Guide

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All 28 Documented Cases

Bottlenecks em Gestão Manual de Inventário de Obras

R$20-40 horas/mês a R$100/hora + perda de vendas por atrasos em empréstimos

Sem software, planilhas desorganizadas impedem relatórios rápidos para seguros, exposições ou NF-e, causando idle time em processos administrativos.

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Direito de Sequência Não Coletado (Resale Royalty Non-Compliance)

Unquantified in sources. LOGIC estimate: If Brazilian art secondary market generates R$ 2-5 billion annually (typical LATAM market size), and 30-50% of sales involve price increases, uncollected resale royalties = R$ 30-125 million annually at statutory 5% rate.

Brazilian Copyright Law grants artists a resale royalty right (direito de sequência): 5% of the profit from artwork resales. Search result [2] confirms: 'In reality, the resale right is rarely paid to artists or collected by sellers in Brazil.' The law exists but is unenforced due to: (1) sellers lacking purchase price documentation to calculate gain; (2) no mandatory collection mechanism; (3) private negotiations often result in 1-3% instead of statutory 5%; (4) AUTVIS (artist association) has no enforcement power. Result [5] cites a landmark 2009 case where Candido Portinari's son had to litigate to collect resale rights, proving systemic non-compliance.

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Erro de Distribuição Entre Composição e Gravação (Publishing Split Calculation)

Unquantified in sources. LOGIC estimate: For every 1,000 songs registered with ECAD, 50-100 have split metadata errors (5-10% error rate typical in music metadata). Average royalty per song R$ 5,000/year → R$ 250,000 - R$ 500,000 annual leak per 1,000-song catalog.

Search result [1] states: 'Out of this 85%, according to ECAD's distribution rules, 2/3 goes to publishing (songwriters and publishers), in accordance with the split shares as informed in the masters' ISRC (International Standard Recording Code).' This split depends on accurate ISRC registration and metadata. Errors in ISRC assignment, split ratios not matching registrations in ECAD vs. international databases, or outdated co-writer information cause misdistribution. Search result [3] notes: 'Every artist's situation is unique, so your net percentage is entirely specific to your career setup,' implying high variance and error risk in manual split calculation.

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Aumento da Alíquota de IVA em Comercialização de Obras de Arte (Lei 214/2024)

R$ 1,620–R$ 2,700 per R$ 10,000 in direct artwork sales (vs. pre-2024 treatment); or 16–27% of revenue for high-volume gallery operations. For a gallery with R$ 500,000 annual direct sales, potential loss = R$ 80,000–R$ 135,000 in additional taxes.

Lei Complementar 214/2024 defines IVA (IBS + CBS + IS) structure but excludes artwork ('comercialização de obras de arte') from the Regime Diferenciado 60% reduction. The PLP 68/2023 definition of 'national artistic/cultural production' was limited to 'services,' not 'goods,' creating a legislative gap. Direct sales of paintings, sculptures, prints, and conceptual objects are now taxed at full rates (27% potential), while international competitors apply 5–7%. Gallery direct sales currently have 50% credit presumido (not full exemption), and fair sales have 100% exemption, but these benefits are now at risk under the new IVA regime.

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