Provisional Measure No. 2132-45 Of May 24, 2001

Original Language Title: Medida Provisória nº 2.132-45, de 24 de Maio de 2001

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PROVISIONAL MEASURE NO 2132? 45, OF 24 MAY 2001
Changes the income tax law in relation to the levy at source on income from financial investments, including residents or domiciled abroad beneficiaries, the conversion into capital , obligations abroad of legal entities domiciled in the country, increases the chances of choice, by individuals, the simplified discount, regulates the information in the income statement, deposits held in banks abroad, and other measures.
The PRESIDENT OF THE REPUBLIC, using the powers conferred upon him by art. 62 of the Constitution, adopts the following Provisional Measure, with force of law:
Art. 1 The rate of income tax at source incident on income earned in the redemption shares of which deals with investment funds to § 6 of art. 28 of Law No. 9,532, of December 10, 1997, with the amendment introduced by art. 2, is reduced to ten percent.
Art. 2 The percentage of eighty percent referred to in § 6 of art. 28 of Law No. 9,532, of 1997, is reduced to sixty-seven percent.
Art. 3. The determination of the calculation basis of income tax at source, in accordance with the provisions of art. 28 of Law No. 9,532, 1997, will apply only from 1 July 1998.
Art. ? 4 In the first half of 1998, the incidence of withholding tax on income earned on investments in investment funds will give up on the redemption of shares, if any, at the following rates:
I? ten percent in the case:
a) of the funds mentioned in art. 1 of this Provisional Measure; and
b) of the funds pursuant to art. 31 of Law No. 9532 of 1997, as framed within the limits set out in § 1 of the same article;
II? twenty percent in the case of other funds.
Sole paragraph. The basis for calculation of income tax mentioned in this Article shall be determined pursuant to § 7 of art. 28 of Law No. 9532, 1997.
Art. 5 For the purposes of levy of income tax at source, consider? Is paid or credited to shareholders of investment funds on the date to complete the first grace period in the second half of 1998, income corresponding to the positive difference between value of the share on 30 June 1998, and:
I? the acquisition cost in the case of funds referred to in art. 31 of Law No. 9,532 of 1997;
II? the acquisition cost in the case of shares acquired from January 1, 1998;
III? the value of the share recorded on December 31, 1997, in other cases.
§ 1 The provisions of this Article shall not apply to funds that, in June 1998, fall within the limit referred to in § 6 of art. 28 of Law No. 9,532, of 1997, with the amendment of art. 2 of this Provisional Measure.
§ 2 In the case of no grace period funds for redemption of shares with income or whose vesting period exceeding ninety days consider? Is paid or credited to income on 1 July 1998.
Art . 6 From 1 January 1999, the incidence of withholding tax on income earned by any beneficiary, including a corporation exempt and immune to in the art. 12 of Law No. 9532 of 1997, the investments in investment funds will occur:
I? the date on which they complete each grace period for income shares with redemption, in the case of funds subject to this condition, except as provided in section II;
II? ? On the last business day of each calendar quarter in the case of funds with periods of higher need to ninety days;
III? on the last business day of each month, or redemption, it occurred on another date in the case of funds with no grace period.
§ 1 The basis for calculating the tax will be the positive difference between the value of the share calculated on the date of redemption or at the end of each incidence period referred to in this article and the application date or the end of the previous incidence period, as appropriate.
§ 2 The losses arising from the redemption of shares may be offset by gains realized on redemptions or subsequent incidents in the same fund, in accordance with procedures to be defined by the Internal Revenue Service.
§ 3 The shareholders of the investment funds whose resources are invested in the acquisition of other investment funds shares will be taxed in accordance with the provisions of this article.
§ 4 The income of the portfolios of the funds mentioned in § 3 shall be exempt from income tax.
§ 5 This Article shall not apply to:

I? to shareholders of investment funds referred to in art. 1, which will be taxed only on the redemption of shares;
II? legal entities referred to in art. 77, I, and foreign investors referred to in art. 81, both of Law No. 8,981, of January 20, 1995, which are subject to the rules laid down therein and in subsequent legislation.
Art. 7 For the second half of 1998 is provided to the administrator of investment funds calculate the income tax payable by shareholders in accordance with the provisions of art. 6, as an alternative to the form of disciplined determination in items I and II and in § 5 of art. 28 of Law 9.532, 1997.
§ 1 Exercised the option provided in this article, the fund manager shall submit to the levy of income tax at source, on 22 December 1998, the income corresponding to the positive difference between the value of the share at that date and calculated on the date of acquisition or at the end of the previous incidence period, as applicable.
§ 2 The income tax due under the provisions of § 1 shall be collected by the administrator of the investment fund, by the last working day of the year 1998.
§ 3 Adopted the alternative to this article , is exempted the calculation of income tax as provided for in art. 5.
Art. 8 It is reduced to zero the rate of the income tax on income earned from September 1, 1998 to June 30, 1999, in financial investments, the Fixed Income Funds? Foreign Capital constituted according to the norms established by the National Monetary Council, for the purpose of attracting external resources for investment in securities issued by the National Treasury or the Central Bank of Brazil and in fixed income financial assets issued by companies and institutions based in country.
sole paragraph. The zero rate applies? If even the income earned during the period referred to above, to those already made applications to the publication of this Provisional Measure.
Art. 9 The capital increase by conversion of bonds referred to in items VIII and IX of art. 1 of Law No. 9,481, of August 13, 1997, may be made with maintenance of the reduction to zero the tax rate on the incident withholding on interest, fees, expenses and discounts already remitted.
§ 1 For the purposes of this article, is prohibited, within the remaining period to final settlement of the capitalized obligation:
I? the return of capital, including for the termination of a legal entity;
II? the transfer of its shares or quotas of capital to individual or legal entity resident or domiciled in the country.
§ 2. Failure to comply with the provisions of § 1 become payable the corresponding tax on the amount of interest, fees, expenses and discounts from the date of shipment, plus default interest and fine for late payment or craft, as appropriate.
§ 3. The provisions of §§ 1 and 2 apply to legal entities resulting from the merger or spin-off of capitalized corporate and incorporate that? It.
§ 4 The capital gain from the positive difference between the book value of the shares or shares acquired through the conversion of this article and the value of the converted obligation will be taxed at source at the rate of fifteen percent.
§ 5 The amount capitalized in the form of this article will include the calculation basis for the purpose of determining the interest on own capital referred to in art. 9 of Law No. 9.249, of December 26, 1995, subject to other applicable rules, including in relation to the tax on income at source.
§ 6 This Article applies also to the obligations contracted until December 31, 1996 relating to the transactions referred to above, kept the tax benefits granted at the time.
§ 7 The Federal Revenue Service shall issue the necessary acts to the control of this article.
Art. 10. The devices listed below, of Law No. 9,532, 1997, become effective with the following wording:
I? art. 6, section II:
?? Art. 6 ................................................. .................
....................................................................................................
II? art. 26 of Law No. 8313, 1991, and art. 1 of Law No. 8,685, of July 20, 1993, shall not exceed four percent of the income tax due "(NR)
II art 34.?.:

"Art. 34. The provisions of arts. 28 to 31 does not apply to cases referred to in Art. 81 of Law No. 8981, 1995 remain subject to the tax rules laid down by law." (NR)
III? art. 82, item II, letter "f ??:
?Art.82.........................................................................................................................................................................................................................................................................
II - .................................................................................................................................
...............................................................................................................................................
F) art. 3 of Law No. 7,418, of December 16, 1985, as renumbered by art. 1 of Law No. 7,619, of September 30, 1987. " (NR)
Sole paragraph. Art. 4 of Law No. 7418, 1985, paid by art. 1 of Law No. 7619 of 1987, the effects of which are restored under the provisions of Part III of this article, allows the deduction of related expenses as operating expenses.
Art. 11. arts. 10:25 of Law No. 9,250, of December 26, 1995, become effective with the following wording:.
"Article 10. Regardless of the amount of taxable income in the statement, received in the calendar year, the taxpayer may elect by simplified discount, which will consist of deduction of twenty per cent of the value of income, limited to eight thousand reais, at the Annual Adjustment Statement, waived proof of expenditure and the statement of its kind.
....................................................................................................................................." (NR)
"Art.25.........................................................................................................................................................................................................................................................................
§ 4 The deposits held in financial institutions abroad should be listed in the statement of assets, from the year? 1999 calendar, the value of the balance of these deposits in foreign currency converted into reais at the exchange price purchase 31 December, being exempt the equity increase due to currency fluctuations.
.....................................................................................................................................'' (NR)
Art. 12. The provisions of art. 10 of Law No. 9,250 of 1995, as amended by art. 11 of this Provisional Measure, only applies to events that occurred from January 1, .. 1998.
Article 13. Article 79 of Law No. 9.430, of December 27, 1996, shall henceforth include the following single paragraph:
"sole paragraph. The Executive Branch may excepcionar on a temporary basis, the application of this Article for certain goods. "(NR)
Art. 14. Art. 9 of Law No. 9.317, of December 5, 1996, as amended . by Article 6 of Law No. 9,779, of January 19, 1999, becomes effective with the following wording:
"Art.9º...........................................................................................................................
I in microenterprise condition, which has earned in the year immediately preceding calendar, higher gross revenue of R $ 120,000.00 (one hundred and twenty thousand reais);?
II in small business condition which has earned in the year immediately preceding calendar, higher gross revenue of R $ 1,200,000.00 (one million two hundred thousand reais);
...............................................................................................................................................
XIX? Pursuing industrialization activity, on their own or to order, the products of Chapters 22 and 24 of Incidence Table IPI? TIPI, subject to the tax regime that treats the Law No. 7,798, of July 10, 1989, maintained until December 31, 2000, the options already exercised. " (NR)
Art. 15. The purchase of private plans portfolio of health care does not characterize transmission tax liability under art. 133 of the National Tax Code, provided they are assured to all that portfolio participants the same conditions of health care coverage, as well as the grace period count and acquisition elapsed benefits, and alienation, although the symbolic price or free of charge:

I? determination is made by the competent organ of the executive branch, in order to avoid damage to the consumer or user;
II? does not involve the transfer rights of acquiring receivable relating to transactions or services rendered prior to the sale, or any other portion of the transferor's assets.
Art. 16. The tax regime provided for in art. 81 of Law No. 8,981, of January 20, 1995, with the amendment introduced by art. 11 of Law No. 9249 of December 26, 1995, applies? If the investor resident or domiciled abroad, individual or collective, whose investments in fixed income markets or equity in the country, according to the rules and conditions established by the National Monetary Council.
§ 1 is responsible for the retention and payment of the withholding tax levied on income from financial operations earned by any foreign investor, the legal person making the payment of such income.
§ 2 The taxation arrangements referred to in the caput does not apply to investment from a country that does not tax income or that taxes it at a rate below twenty percent, which be subject to the same rules established for residents and domiciled . in the country
§ 3 As regards the provisions of § 2 will be observed that:
I? without prejudice to the provisions of § 1, the foreign investor shall, in the case of transactions in stock exchanges, commodities, futures and similar, to name institution authorized to operate by the Central Bank of Brazil as responsible in the country for compliance with tax liabilities arising from such transactions;
II? in the case of shares acquired until December 31, 1999, for purposes of determining the basis for calculating the income tax, the cost of acquisition, when is not known, will be determined by the weighted average share price, determined in occurred negotiations, stock exchange with the highest volume of transactions with the action, in December 1999 or, if there was no business that month, the previous month close.
§ 4 The Federal Revenue Service may issue rules for the control of operations carried out by foreign investors.
Art. 17. It set up special customs regime on imports without exchange coverage of inputs for industrialization by order of products classified in headings 8701 to 8705 the Tax Incidence Table on Industrialized Products? TIPI, for the account and corporate order ordering party domiciled abroad.
§ 1 considered? If inputs for the purposes of this article, the chassis, the body, parts, parts, components and accessories.
§ 2 The import of inputs to? If? You with IPI suspension.
§ 3 The import duty will only be applicable on imported inputs used in the manufacture of products, including in the event of item II of § 4.
§ 4 The result of tolling products have the following tax treatment:
I? when intended for export, decides the suspension of IPI on imports and acquisition in the domestic market, inputs them employees;
and II? when for the domestic market, they must be remitted to wholesale trading company controlled, directly or indirectly, by the legal entity ordering party domiciled abroad, by the order of this with IPI suspension.
§ 5 The wholesale trading company acquiring the products resulting from industrialization to order equates to industrial property.
§ 6 The granting of the special customs arrangements require prior clearance before the Federal Revenue Service, which issue the rules necessary to comply with the provisions of this article.
Art. 18. The tax filing rectification and contributions administered by the Federal Revenue Service, in cases where admitted, will have the same kind of statement originally presented, regardless of authorization by the administrative authority.
Sole paragraph. The Federal Revenue Service will establish the chances of eligibility and procedures for the declaration of rectification.
Art. 19. hereby validated the acts performed pursuant to Provisional Measure 2132? 44, of 26 April 2001.
Art. 20. This Provisional Measure shall enter into force on the date of its publication.
Brasilia, May 24, 2001; 180th of Independence and 113th of the Republic.

Cardoso Pedro Parente

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