What are FUST and FUNTTEL?

The funds aim to foster the development of telecommunications in the country.

What Do the Acronyms Mean?

• FUST: Universalization Fund for Telecommunications Services
• FUNTTEL: Technological Development Fund for Telecommunications

FUST, in particular, is designed to provide access to telephone and internet services in regions of the country with low population density and weak economic activity—factors that make it difficult to fund such services and often leave millions of Brazilians isolated.

As some may already know, the resources for these funds come from contributions by companies in the sector. Do you know how to make these contributions? What is the calculation base for these contributions? Or even whether your company is required to contribute?

In today’s post, we’ll clarify all these questions.

How Are the Funds Financed?

According to FUST’s manual, available on the National Telecommunications Agency (ANATEL) website, this fund is financed by 1% of the gross operational revenue from telecommunications services. This rule applies to both public and private sectors.

Additionally, FUST is also partially funded by the Telecommunications Supervision Fund (FISTEL).

FUNTTEL, on the other hand, is financed by 0.5% of the net revenue from telecommunications service providers. There is also 1% of gross revenue from billed telephone calls in participatory events.

It is worth noting that when FUNTTEL was established under Law No. 10,052, of November 28, 2000, it received an initial contribution of R$100 million from FISTEL.

Who Is Required to Contribute to FUST and FUNTTEL?

A recurring question in the telecommunications sector when discussing FUST and FUNTTEL is: who is required to contribute? As mentioned earlier, any company in this segment must contribute the specified percentages based on the revenue generated from their services.

To make it clearer, let’s review ANATEL’s definition of a telecommunications service provider:

“A telecommunications service provider is a legal entity that holds a concession, license, or authorization to provide telecommunications services, radio frequency authorization, or the right to use Brazilian or foreign satellites.”

What Is the Calculation Base for These Contributions?

Let’s review the calculation base for each contribution:

FUST

• 1% of the gross operational revenue derived from telecommunications services in both public and private sectors. The base excludes amounts spent on ICMS (state tax) and PIS/COFINS (federal taxes).

FUNTTEL

• 0.5% of the gross revenue from telecommunications service providers in both public and private sectors. The base also excludes amounts spent on ICMS and PIS/COFINS.

Important Considerations from ANATEL

• Gross Operational Revenue is the revenue generated from providing telecommunications services, recognized on an accrual basis, regardless of invoice issuance or payment, excluding canceled sales and granted discounts.
• Non-telecommunications revenue includes satellite capacity provisioning, user and equipment registration for service access, and value-added services.
• Contributions do not apply to transfers between telecommunications service providers when the originating provider has already paid the contribution.

Key Differences Between FUST and FUNTTEL

While FUST’s contribution rate is higher (1%) than FUNTTEL’s (0.5%), its calculation base is more limited. FUST applies only to revenue from telecommunications services, whereas FUNTTEL applies to the gross revenue of all company operations.

How to Make Payments for These Contributions?

FUST

According to Law No. 9,998, of August 17, 2000, which established FUST, telecommunications companies must submit monthly accounting statements to ANATEL through the FUST Declaration Submission System (SFUST).

The system calculates the contribution amount and generates a payment slip based on the submitted information. For more details, consult the FUST manual to register your company in the system.

FUNTTEL

Since July 2015, FUNTTEL contributions are no longer collected through a DARF (Federal Revenue Collection Document). Instead, payments are now made using a Union Collection Guide (GRU), as FUNTTEL revenues are directly managed by the Ministry of Communications and not included in the National Treasury accounts.

To generate a GRU payment document, you need:

• Revenue Management Unit (UG);
• Management Code;
• Collection Code;
• Reference Number;
• Payment Amount.

These details are available on ANATEL’s website.

See more]: SUCCESSION PLANNING VIA HOLDING: HOW DOES IT WORK?

Stay Alert!

We hope today’s post clarified the key points about FUST and FUNTTEL. Pay attention to the contribution calculation bases and gather all necessary revenue data from your company to ensure accuracy.

Check the appropriate payment methods to avoid future issues with ANATEL or any other regulatory authority. Remember, the success of your business depends, among other factors, on paying all taxes and contributions on time.

What Did You Think of This Explanation About FUST and FUNTTEL?

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