In 1990, by Presidential decree, the Cinemateca Nacional de Venezuela was created, which is currently in force and has the objective to protect all audiovisual content produced in the country.
On 8 September 1993, the first National Cinematography Law was approved by the government of Ramón J. Velázquez, offering an instrument to achieve the organization of a Guild of Filmmakers and to modernize said sector in the country.
However, this first version of the law didn't contain any protections for producers and distributors, raising questions about pay-per-screen for national films being a problem that would strongly affect the distribution of them.
Later, on 26 October 2005, the first reform of the law occurred, where the name was changed to "National Cinematography Law" (Spanish: Ley de la Cinematografía Nacional),[1] as well as other changes, like the inclusion of providing a percentage of the pay-per-screen fee for Venezuelan films, greater participation of the private sector in filmmaking activities through taxes and financial incentives, and the creation of the Fund to Promote and Finance Film (Fondo de Promoción y Financiamiento del Cine; FONPROCINE), which has the goal to encourage, promote, develop, and finance the national filmmaking industry.
Article 13 corresponds to the President of the CNAC, who may be freely appointed and removed by the President of Venezuela, and who fulfils the following duties: In article 16, the assets of the CNAC are established as comprising: In article 17 it is established that the CNAC should stimulate and may carry out activities such as: the importing of cinematographic works of relevant artistic and cultural quality; the teaching, research, conservation, archiving and cultural dissemination of cinematographic works—including coordinating other public or private institutions that perform related activities in the participation of this task; encouraging the attendance of people to cinemas and theatres; and to incentivize and promote the constitution of the spectator committees[clarification needed].
With article 44, the CNAC may promote binational or multinational agreements, pacts or conventions, according to which foreign cinematographic works may obtain the same benefits granted to nationals, provided there are conditions of reciprocity.
Article 47 states that no creator or producer may be deprived of personal freedom because of the subject, content, script, characters or other elements inherent in the message or idea of the cinematographic work, unless there is a judicial decision in court.
According to articles 50 and 51 of the law, a special contribution or tax should be enforced, that will be paid by legal or natural citizens whose registered business is the exhibition of cinematographic works for commercial purposes.
In article 51 it is outlined that companies that provide television service with an open signal for commercial purposes will pay FONPROCINE a different special contribution, calculated based on the gross income received from the sale of advertising spaces.
Commercial distributors of cinematographic works will pay to FONPROCINE a special contribution, equivalent to (5%) of their gross income, exigible within the first forty-five continuous days following the expiration of the respective year.
This provision shall not apply to persons whose gross income obtained in the respective fiscal period does not exceed ten thousand tax units (10,000 UT).
Natural or legal citizens engaged in the rental or sale of videograms, digital video discs, as well as any other existing or future duplication system, will pay FONPROCINE, a special contribution equivalent to five percent (5%) of their monthly invoicing, without affecting the corresponding value added tax, payable within the first fifteen continuous days following the month of the occurrence of the taxable event.
The natural or legal citizens, referred to in the previous article, must place on each videogram, case, or container of the cinematographic work, before its sale or rental, the printed or computerized media that the CNAC establish to the effect.
The CNAC, may order the stoppage of any cinematographic work of foreign production that does not have permission, without prejudice, and impose a fine of fifty tax units (50 U.T.).
The CNAC, at the request of an interested party or ex officio, may, through a reasonable administrative act, order preventive retention of support or any nature containing cinematographic works that have not complied with the provisions of this law.