Companies in the sector can allocate part of their income tax to social projects; find out how.

Companies in the solar energy sector can also contribute to social development through cultural initiatives. One example is the partnership between Ronma Solar and IMC (Instituto Melo Cordeiro), which supports the SER Project, an initiative focused on the education and development of children and adolescents in socially vulnerable areas.

The initiative utilizes the tax incentive mechanisms of the Rouanet Law to direct resources to cultural activities and expand opportunities through art and education.

The mechanism allows for the redirection of a portion of the resources that would be collected by the government to the financing of cultural activities, respecting the limits and requirements stipulated by law. Depending on the project's classification, the allocated amount may be fully deductible from taxes.

An example of this application in the photovoltaic market is the partnership between Ronma Solar and IMC (Instituto Melo Cordeiro), aimed at supporting the SER Project, an initiative that promotes the development of children and young people in vulnerable areas through art and socio-emotional education.

With the support of Ronma Solar, the initiative aims to reinforce the importance of companies' participation in expanding access to culture and creating opportunities for new generations.

The project is approved by the Ministry of Culture, under registration number PRONAC 2415889, and includes activities in music, dance, theater, and socio-emotional development.

According to Vinicius Augusto, marketing coordinator at Ronma Solar, the company chose to use the tax incentive as a way to support an institution aligned with its values ​​and expand its social contribution.

“We believe that a company’s role goes beyond its economic activity. We can also contribute to the development of communities and the creation of new opportunities,” he stated.

For him, supporting initiatives like the SER Project is a way to transform resources into concrete benefits for society, valuing the culture, education, and potential of children and young people.

"For Ronma Solar, participating in this initiative reinforces the importance of responsible business practices that are connected to the needs of society," he added.

Vinicius also highlighted that the operation requires tax planning and accounting monitoring, since the amount available for allocation depends on the company's tax conditions.

"It all depends on how much profit you're going to make, what your revenue is, depending on your tax method. And then, all of that goes through accounting before that contribution is made to the institution," he noted.

The partnership integrates Ronma Solar's ESG (environmental, social and governance) actions and exemplifies how companies in the photovoltaic sector can link their social responsibility strategies to tax incentive mechanisms.

Partnership benefits children and young people in vulnerable areas.

The SER Project uses artistic expressions and socio-emotional education activities to stimulate the development of children and young people in vulnerable communities.

This initiative is part of the activities of the Melo Cordeiro Institute, which adopts its own methodology called Happiness, based on the concept of Education for Happiness.

In addition to cultural activities, the institution develops initiatives related to food security, technology, and body expression.

According to IMC, its initiatives have already impacted more than 30 people in over ten vulnerable territories, throughout almost 15 years of operation.

For Chico Ledo, general coordinator of the Melo Cordeiro Institute, Ronma Solar's participation represents an incentive for the young people served by the institution.

“Having such a large, multinational, and innovative partner as Ronma supporting IMC serves as an incentive for our young people, since this support breaks down territorial barriers and signals to them that they can conquer the world,” he stated.

According to Ronma Solar, the possibility of choosing an institution aligned with the company's values ​​is one of the relevant aspects of the incentive mechanism.

"We are able to select an institute that makes sense for us, as a company as well, based on what we believe in," the representative highlighted.

How can companies participate in the Rouanet Law?

To utilize the tax incentive, companies must meet the requirements of Law No. 8.313/1991 and select cultural projects authorized by the Ministry of Culture to raise funds.

The process involves steps such as tax analysis, choosing the initiative, defining the investment, and registering the transaction for tax purposes.

1. Check the tax classification.

The first step is to confirm whether the company is taxed under the Real Profit regime, a necessary condition to use the tax incentive intended for legal entities.

In this case, the legislation allows allocating up to 4% of the income tax owed to incentivized cultural projects, in accordance with applicable tax rules.

Ronma Solar emphasizes the importance of involving the accounting department from the beginning of the process, to assess the available funds and ensure that their allocation complies with the law.

2. Choose an approved cultural project.

The company must select an initiative authorized by the Ministry of Culture to raise funds through the Rouanet Law.

The information can be obtained through the Support System for Cultural Incentive Laws (Salic), which gathers information about approved projects.

It is important to verify that the fundraising authorization is valid and that the initiative is eligible to receive funds.

3. Define the amount and type of support.

After selecting the project, the company must contact the responsible institution and define the amount it intends to allocate, respecting the permitted tax limit.

Support can be provided through donations, without promotional intent, or sponsorship, a modality that allows the company's brand to be associated with the project, according to applicable rules.

It is also necessary to verify whether the initiative falls under Article 18 or Article 26 of the Rouanet Law, since this classification determines the percentages of tax deduction.

In the case of the partnership with the Melo Cordeiro Institute, the Ronma Solar representative explained that formalizing the agreement was also part of the process. "We also needed to finalize the agreement with the Institute, as it falls under the Rouanet Law," he stated.

4. To allocate the resources.

The funds must be transferred to the project's specific fundraising bank account via a clearly identified deposit, in accordance with the requirements of the Ministry of Culture.

The company must keep the transaction receipts and the necessary documentation to demonstrate the allocation of funds.

5. Report the incentive when calculating Income Tax.

Finally, the company must record the amounts allocated in the calculation and corresponding tax obligations, observing the limits and conditions for deduction.

According to the Ministry of Culture, projects falling under article 18 allow for a 100% deduction of the incentivized amount, within legal limits. Article 26, however, involves different percentages, potentially including partial deductions and specific expense treatment.

According to the Ronma Solar representative, understanding the rules of the legislation is fundamental for companies interested in using the mechanism.

"I wouldn't call it a tip, it's not that, but guidance itself, a better understanding of the law," he added.

The partnership between Ronma Solar and Instituto Melo Cordeiro demonstrates how tax incentives can be used to support cultural initiatives, while also allowing companies to direct resources to projects aligned with their social responsibility strategies.

The Rouanet Law allows companies taxed on actual profit to allocate part of their income tax to cultural projects previously approved by the Ministry of Culture, provided that the conditions and limits established by law are respected.

This mechanism allows resources earmarked for tax payments to be used to fund authorized cultural initiatives, expanding opportunities for private sector participation in the country's cultural development.

Utilizing the incentive requires attention to the project's eligibility, the applicable incentive type, and the permitted deduction limits. Therefore, before allocating funds, it is important for the company to confirm the project's conditions and plan accordingly with the support of its accounting team or a tax specialist.

all the content of Canal Solar is protected by copyright law, and partial or total reproduction of this site in any medium is expressly prohibited. If you are interested in collaborating or reusing part of our material, please contact us by email: redacao@canalsolar.com.br.