MEASURE PROVISóRIA No. 1.943-56, DE August 23, 2000.

Changes the income tax legislation and gives other arrangements.

THE PRESIDENT OF THE REPUBLIC, in the use of the attribution that confers you the art. 62 of the Constitution, adopts the following Interim Measure, with force of law:

Art. 1º The legal person, whose claims with legal person of public law or with a company under his / her control, public company, mixed economy company or its subsidiary, arising from construction by undertaking, supply of goods or provision of services, are provided by the Public Power with title of its issuance, including with Securitization Certificates, issued specifically for that purpose, you can compute the share of the profit, corresponding to those credits, which there has been deferred in the manner of the provisions of § § 3º and 4º of the art. 10 of Decree-Law No. 1,598 of December 26, 1977, in determining the actual profit of the base period of the bailout of the securities or of their disposal in any form.

Art. 2º The willing on art. 65 of Law No. 8,383 of December 30, 1991 applies, also, in the cases of delivery, by the winning bidder, of public debt securities of the State, the Federal District or the Municipality, as a counterpart to the acquisition of shares or shares of company under direct or indirect control of the said legal persons under public law, in the cases of disestation by them promoted.

Art. 3º It is reduced to fifteen per cent the aliquot of the income tax incident at the source on the paid, credited, delivered, employed or remitted to the exterior to the title of royalties of any nature.

Art. 4º It will not focus the income tax on the source on the income paid or credited to the company domiciled abroad, by the contraction of telecommunication services, by telecommunication company that centralize, in Brazil, the provision of corporate network services of legal persons.

Single Paragraph. For the purposes of this article, it is considered to be corporate network the private telecommunication network of a company or entity, which interconnects its various points of operations in Brazil and abroad.

Art. 5º The assets of the fixed assets immobilized, except for the bare land, acquired by legal person who explore rural activity, for use in that activity, may be depreciated in full in the year of the acquisition itself.

Art. 6º Excludes the incidence of income tax at source and income declaration the value of the rescue of private pension contributions, the burden of which has been on the physical person, received on the occasion of their dislocation of the benefits plan of the entity, which corresponds to the parcels of contributions effected in the period 1º from January 1989 a to December 31, 1995.

Art. 7º Will be admitted as instruction expenses, provided for in art. 8º, inciso II, point ?b?, of Law No. 9,250 of December 26, 1995, payments made to crèches.

Art. 8º Stay convalidated the acts practiced on the basis of the Provisional Measure No. 1.943-55 of July 26, 2000.

Art. 9º This Provisional Measure shall come into force on the date of its publication.

Brasilia, August 23, 2000 ; 179º of Independence and 112º of the Republic.

FERNANDO HENRIQUE CARDOSO

Pedro Malan