Provisional measure no. 1,943-58, of 19 October 2000.
Changes to income tax legislation and other matters.
The PRESIDENT of the REPUBLIC, in the use of the role that gives the art. 62 of the Constitution, adopts the following provisional measure, with force of law: Art. 1 legal entity, whose credits with a legal entity of public law or company under its control, public company, joint stock company or its subsidiary, arising from construction contract work, for the supply of goods or provision of services, are paid by the Government with title of issue, including Securitization, certificates issued specifically for this purpose , you can compute the portion of the profit, corresponding to these credits, which has been delayed in the form to the provisions of §§ 3 and 4 of art. 10 of Decree-Law No. 1598, of 26 December 1977, in determining the taxable income of the period-the basis of redemption of the securities or their disposal in any form.
Art. 2 the provisions of art. 65 of Act No. 8383, of 30 December 1991, applies also in cases of delivery, by the winning bidder, of public debt of the State, the Federal District or the Municipality, as a counterpart to the acquisition of shares or shares of the company under direct or indirect control of such legal persons governed by public law, in cases of privatization because they promoted.
Art. 3 is reduced to 15% the rate of income tax at source on the incident amounts paid, credited, delivered, used or forwarded to the outside by way of royalties of any kind.
Art. 4 shall cover income tax at source on income paid or credited the company domiciled abroad, by consideration of telecommunications services by telecom company to centralize, in Brazil, the provision of corporate network services.
Sole paragraph. For the purposes of this article, it is considered corporate network the private telecommunication network of a company or entity, which connects its various points of operations in Brazil and abroad.
Art. 5 The permanent assets property, plant and equipment, except the bare land, acquired by legal person who operates the rural activity, for use in this activity may be depreciated in full in the year of acquisition itself.
Art. 6 excludes the impact of income tax at source and in the statement of income the value of private pension contributions rescue, whose cost has been the physical person, received on the occasion of their shutdown of the entity's benefit plan, that correspond to portions of contributions for the period 1 January 1989 to 31 December 1995.
Art. 7 will be admitted as instructional costs, provided for in art. 8, item II, paragraph 1 (a)? b?, of law No. 9250, of 26 December 1995, the payments made to kindergartens.
Art. 8 Are convalidados the acts performed on the basis of provisional measure no. 1,943-56, of 21 September 2000.
Art. 9 This provisional measure shall enter into force on the date of its publication.
Brasília, 19 October 2000; 179 of independence and 112 of the Republic.
FERNANDO HENRIQUE CARDOSO, Pedro Malan