Provisional Measure No. 2,189-47, Of 28 June 2001

Original Language Title: Medida Provisória nº 2.189-47, de 28 de Junho de 2001

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PROVISIONAL MEASURE N° 47, 2,189? 28 JUNE 2001 Changes to income tax legislation regarding the impact on income from investments, including recipients residing or domiciled abroad, to conversion, in social capital, of obligations abroad of legal entities domiciled in the country, extends the possibility of choice, by individuals, by simplified discount , regulates the information in the statement of income, deposits held in banks abroad, and other measures.
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 the rate of income tax at source on income earned in the quota buy-back of investment funds referred to in § 6 of art. 28 of law No. 9532, of 10 December 1997, with the amendment introduced by art. 2nd, is reduced to 10%.
Art. 2 the percentage of 80% referred to in § 6 of art. 28 of law No. 9532 of 1997, is reduced to 67%.
Art. 3 determining the basis for the calculation of income tax at source, in accordance with the provisions of art. 28 of law No. 9532 of 1997, will be applicable only from July 1, 1998.
Art. 4 in the first half of 1998, the incidence of income tax at source on income earned on investments in investment funds take?? the redemption of shares, if any, to the following rates: (I)? of 10%, in the case: a) the funds referred to in art. first this provisional measure; and (b)) of the funds referred to in art. 31 of law No. 9532 of 1997, while framed in the limit laid down in paragraph 1 of that article;
II. of 20%, in the case of other funds.
Sole paragraph. The basis for calculating the income tax in this article shall be determined according to the provisions of § 7 of art. 28 of law No. 9532 of 1997.
Art. 5 for the purposes of the income tax at source,? if you paid or credited to the shareholders of investment funds on the date on which they complete the first grace period in the second half of 1998, the income corresponding to the positive difference between the value of the quota, on 30 June 1998, and: (I)? the cost of acquisition, in the case of the funds referred to in art. 31 of law No. 9532 of 1997;
II. the cost of acquisition, in the case of shares acquired as of January 1, 1998;
III. the value of the quota in December 31 1997, in other cases.
(1) the provisions of this article shall not apply to funds that, in June 1998, CJ in the limit of § 6 of art. 28 of law No. 9532 of 1997, with the amendment of art. 2 of this provisional measure.
§ 2 in the case of funds without grace period for redemption of quotas with income or whose grace period exceeding 90 days, consider? if paid or credited income on 1 July 1998.
Art. 6 from January 1, 1999, the incidence of income tax at source on income earned by any beneficiary, including legal person exempt and immune from the art. 12 of law No. 9532 of 1997, investment funds applications, occurs: (I)? on the date on which they complete each grace period for redemption of quotas with income, in the case of funds subject to this condition, except as provided in subparagraph (II);
II. on the last working day of each calendar quarter. in the case of funds shortage periods exceeding 90 days;
III. on the last working day of each month, or in the rescue, if it occurred at another date, in the case of funds without a grace period.
(1) the basis for calculation of the tax is the positive difference between the value of the share calculated on the date of redemption or at the end of each tax period referred to in this article and on the date of application or at the end of the previous tax period, as the case may be.
§ 2 the losses on redemption of quotas can found be compensated with gains earned in redemptions or subsequent impact in the same investment fund, in accordance with procedures to be defined by the internal revenue service.
§ 3 The shareholders of investment funds whose resources are applied in the acquisition of shares of other investment funds are taxed in accordance with the provisions of this article.
§ 4 The income earned by the funds ' portfolios dealing with paragraph 3 are exempt from income tax.
§ 5 the provisions of this article shall not apply: (I)? to the shareholders of investment funds referred to in art. First, you will be taxed exclusively in the quota buy-back;
II. legal persons referred to in art. 77, item I, and foreign investors referred to in art. 81, both of law No. 8981, of 20 January 1995, which are subject to the rules contained therein and in subsequent legislation.
Art. 7 on the second half of 1998, is provided to the administrator of investment funds to establish the income tax due by the shareholders, in accordance with the provisions of art. 6, as an alternative to the form of disciplined calculation in sections I and II and in paragraph 5 of art. 28 of law No. 9532 of 1997.
§1 Exercised the option provided in this article, the Fund administrator must submit to the incidence of income tax at source, on 22 December 1998, the income corresponding to the positive difference between the value of the share at the time and calculated at the date of acquisition or at the end of the previous tax period, as the case may be.
§ 2 the income tax due in virtue of the provisions of paragraph 1 shall be collected, by the administrator of the Fund, until the last working day of the year of 1998.
paragraph 3 Adopted the alternative contemplated in this article, is excused the calculation of income tax in the manner provided for in art. 5.
Art. 8 Is reduced to zero the rate of income tax levied on the income earned from September 1, 1998 until 30 June 1999, in financial applications, for Fixed income funds? Foreign capital formed in accordance with the standards set by the National Monetary Council, with the purpose of attracting external resources for investment in securities issued by National Treasury or Central Bank of Brazil and in fixed income financial assets issued by companies, and institutions based in the country.
Sole paragraph. The zero rate applies?, including the income earned in the period referred to in the caput, in relation to applications made prior to publication of this provisional measure.
Art. 9 the capital increase through conversion of bonds in items VIII and IX of the art. 1 of law No. 9481, of 13 August 1997, can be made with maintenance of the reduction to zero of the rate of income tax at source on interest incident, commissions, expenses and discounts already submitted.
(1) for the purposes of this article, is sealed, the remainder scheduled for final settlement of the obligation (I) capitalized? the return of capital, including for the termination of the legal person;
II. the transfer of their shares or capital shares to person or entity resident or domiciled in the country.
(2) the non-compliance with the provisions of paragraph 1 become the corresponding tax liabilities in respect of the amount of interest, commissions, expenses and deductions from the date of shipment, plus interest on arrears and fine for late payment or trade, as the case may be.
(3) the provisions of §§ 1 and 2 apply to legal persons as a result of merger or Division of the legal entity capitalized and that incorporate? la.
§ 4 the capital gain arising from the positive difference between the book value of the shares or quotas acquired with the conversion of this article and the value of the obligation cast will be taxed at source at the rate of 15%.
§ 5 the amount capitalized in the form of this article will integrate the calculation basis for purposes of determining the interest on own capital as referred to in art. 9 of law nº 9249, of 26 December 1995, observed the other standards, including in relation to the incidence of tax on income at source.
paragraph 6 the provisions of this article also applies to obligations contracted until 31 December 1996, relating to the operations referred to in the caput, kept the tax at the time granted.
paragraph 7 Federal Revenue Secretariat shall send out the acts necessary for the control of provisions of this article.
Art. 10. The devices listed below, of law No. 9532 of 1997, shall take effect as follows: I. the art. 6, subsection read:? Art. 6º .........................................................................................................................
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II. the art. 26 of law No. 8313 of 1991, and art. 1 of law No. 8685 of 20 July 1993, may not exceed 4% of the income tax due. " (NR)
II. the art. 34: "Art. 34. the provisions of arts. 28 to 31 shall not apply to the hypotheses contemplated in art. 81 of law No. 8981, of 1995, which remain subject to the rules of taxation provided for in current legislation. " (NR)
III. the art. 82, item II, paragraph "f?:? Art. 82. .......................................................................................................................

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II - ...............................................................................................................................
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f) o art. 3 of law No. 7418, of 16 December 1985, remunerated by the art. 1 of law No. 7619, September 30, 1987. " (NR)
Sole paragraph. The art. 4 of law No. 7418, 1985, renumbered by art. 1 of law No. 7619, 1987, whose effects are restored by virtue of the provisions of paragraph III of this article, allows the deduction of corresponding expenses as operating expenditure.
Art. 11. The arts. 10 and 25 of law No. 9250, of 26 December 1995, shall take effect as follows: Art. 10. Regardless of the amount of taxable income in the statement, received in the calendar year, the taxpayer may choose to discount simplified, which will consist of 20% deduction of the value of these incomes, limited to 8000 reais, in the Declaration of Annual Adjustment, dismissed the evidence of expenditure and an indication of its kind.
.....................................................................................................................................? (NR)
? Art. 25...................................................................................................................................................................................................................................................................... paragraph 4 deposits held with financial institutions abroad should be listed in Declaration of assets, from the year 1999, at calendar? value of the balance of these deposits in foreign currency converted into real currency quotation on 31 December, being exempt equity resulting from the extra Exchange variation.
.....................................................................................................................................? (NR)
Art. 12. the provisions of art. 10 of law No. 9250, 1995, as amended by art. 11 of this provisional measure, only applies to facts occurring generators from January 1, 1998.
Art. 13. art. 79 of law No. 9430, of 27 December 1996, goes into effect with the following single paragraph: "§ 1. The Executive branch can excepcionar, in temporary application of the provisions of this article in respect of certain goods. " (NR)
Art. 14. art. 9 of law No. 9317, of 5 December 1996, as amended by art. 6 of law No. 9779, of 19 January 1999, is replaced with the following writing:? Art. 9º .........................................................................................................................
I? on condition of micro-enterprise, who has earned in the immediately preceding calendar year?, gross revenue exceeds 120,000.00 R$ (120,000 dollars);
II. on condition of small business, which has received in the immediately preceding calendar year, gross revenue exceeding 1,200,000.00 R$ (us $ 200,000);
.....................................................................................................
XIX. who performs the activity of industrialization, for its own account or for hire, of products falling within chapters 22 and 24 from the reserve IPI Table? TIPI, subject to the taxation regime of law No. 7798, of 10 July 1989, maintained, until 31 December 2000, the options already exercised. " (NR)
Art. 15. The acquisition of private healthcare plans do not characterize the transmission of tax liability, pursuant to art. 133 of the national tax code, provided they are secured to all participants of that wallet the same conditions of health care coverage, the count of grace periods and benefits after acquisition, and disposition, even if the symbolic price or free of charge: (I)? is performed for the determination of the competent body of the Executive power, in order to avoid damage to the consumer or user;
II. does not involve the transfer to the acquirer of the rights receivable in respect of operations performed or services rendered prior to sale, or any other part of the patrimony of the alienator.
Art. 16. the scheme of taxation provided for in art. 81 of law No. 8981, of 20 January 1995, the amendment introduced by art. 11 of law nº 9249, of 26 December 1995, applies. If the investor resident or domiciled abroad, individual or collective, which perform financial transactions in the fixed income markets or variable income in the country, according to the standards and conditions laid down by the National Monetary Council.
§ 1 is responsible for withholding and collection of income tax at source on income from financial operations earned by any foreign investor, the legal entity that payment of such income.
§ 2 the taxation scheme referred to in the heading does not apply to investment from country tribute the income or the rate of less than 20% tribute, which is subject to the same rules for residents and domiciled in the country.
paragraph 3 with regard to the provisions of paragraph 2 shall be observed that: (I)? without prejudice to paragraph 1, the foreign investor should, in the case of transactions on stock exchanges, futures, and similar name institution authorized to operate by the Central Bank of Brazil in charge, in the country, tax obligations arising from such transactions;
II. in the case of shares acquired up to 31 December 1999, for the purpose of determination of the basis for the calculation of income tax, the cost of acquisition, when is not known, will be determined by the weighted average price of the share, determined in negotiations occurred, the stock market with greater volume of operations with the action, in the month of December 1999 or If there have been no deals that month, the previous month.
§ 4 the internal revenue service can download standards for the control of the operations carried out by foreign investors.
Art. 17. Is established special customs regime relating to the importation, without Exchange coverage of supplies intended for industrialization by order of products classified in headings 8701 to 8705 of the Incidence of the tax on industrialized products? TIPI, on behalf of a legal entity domiciled abroad now applies.
(1) Consider? if inputs, for the purposes of this article, the chassis, the bodywork, parts, parts, components and accessories.
(2) the import of inputs give?? with suspension of IPI.
§ 3 the import tax levied on the imported inputs only employees in the industrialization of the products, even if the item II of § 4.
§ 4 The products resulting from industrialization to order will have the following tax treatment: I? When intended for the exterior, resolves the IPI is incident on import and acquisition, in the internal market, inputs them employees; and II? When intended for the domestic market, the company will be sent commercial wholesaler, controlled, directly or indirectly, by the legal person domiciled abroad now applies, on behalf of this, with suspension of IPI.
§ 5 the company acquiring wholesaler of commercial products resulting from industrialization to order action if the industrial establishment.
§ 6 the grant of the special customs regime will depend on prior clearance before the internal revenue service, which issue the standards necessary for compliance with the provisions of this article.
Art. 18. Rectification of Declaration of taxes and contributions administered by the internal revenue service, in cases in which admitted, will have the same kind of statement originally submitted, regardless of authorization by the management authority.
Sole paragraph. The internal revenue service will establish the hypotheses of admissibility and the procedures for rectification.
Art. 19. Get convalidados the acts performed on the basis of provisional measure no. 46, 2,132? 21 June 2001.
Art. 20. This provisional measure shall enter into force on the date of its publication.
Art. 21. Revokes? if the provisional measure no. 46, 2,132? 21 June 2001.
Brasília, 28 June 2001; 180 degrees of independence and 113 of the Republic.
FERNANDO HENRIQUE CARDOSO, Pedro Parente

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