Decree No. 5730, of 20 MARCH 2006.
Regulating art. 110 of law No. 11196 of 21 November 2005, which deals with the tax regime adopted in the operations carried out in future settlement markets by institutions authorized to operate by Banco Central do Brazil.
The PRESIDENT of the REPUBLIC, in the use of the role that gives the art. 84, section IV, of the Constitution, and in view of the provisions of art. 110 of the law on 11196 of 21 November 2005, DECREES: Art. 1 for the purpose of determining the calculation basis of the contribution to the PIS/PASEP, the contribution to the Social security financing (COFINS), income tax of legal entities (CORPORATE INCOME TAX) and the Social contribution on net profits (CSLL), financial institutions and other institutions authorized to operate by Banco Central do Brazil must compute as revenue or expenditure incurred in the operations carried out in markets of future settlement : i. the difference, sharp on the last working day of each month, between the variations in rates, prices or contracted rates (difference of curves), being the balance calculated at the time of settlement of the contract, including by means of transfer or early closure of the position in the cases of: a) swap and term; and (b)) and other future derivatives with financial daily or periodic adjustments of positions whose underlying assets are contracts spot interest rates or fixed income instruments for which it is possible the determination of the criteria provided for in this item;
II-the result of the algebraic sum of the adjustments calculated on a monthly basis, in the case of markets referred to in paragraph b of item (I), whose underlying assets are goods contracts, currencies, variable income assets, term interest rates or any other asset or economic variable to which it is not possible to adopt the criterion provided for in that subsection; and III-the accurate result in the liquidation of the contract, including by means of transfer or early closure of position, in the case of options and other derivatives.
Art. 2nd Is responsible for calculating and the dissemination of the values referred to in subparagraph (a) "b" item I of the caput of the art. 1st the commodities futures exchange (BM&F) &, headquartered in the city of São Paulo.
Art. 3rd For operations performed in the over-the-counter market, will only be admitted to the recognition of expenses or losses, for the purpose of calculating the tax and contributions referred to in the caput of the art. First, if the operation has been registered in that system has criteria for assessing whether the prices at the opening or closing of the position, are consistent with market prices.
Sole paragraph. The operations referred to in this article shall be recorded in the entity authorized by the Central Bank of Brazil or by the Securities and Exchange Commission to provide this service.
Art. 4 in the case of hedge operations carried out in future settlement in markets abroad, the revenue or expenditure shall be suitable for the result: I-the algebraic sum of the adjustments calculated on a monthly basis, in the case of contracts subject to adjustments of positions; and II-received in settlement of the contract, in the case of other derivatives.
Art. 5 for the purpose of determining the calculation basis of the contribution to the PIS/PASEP and COFINS related institutions in item I of § 6 of art. 3 of law No. 9718 of November 27, 1998, is sealed the recognition of expenses or losses calculated on transactions in OTC markets abroad.
Art. 6 the internal revenue service, in the exercise of its jurisdiction, issue the rules necessary for the implementation of this Decree.
Art. 7 this Decree shall enter into force on the date of its publication.
Brasilia, March 20 2006; 185 of independence and 118a of the Republic.
LUIZ INACIO LULA DA SILVA, Murilo Portugal Filho