Law No. 12,780, 09 January 2013

Original Language Title: Lei nº 12.780, de 09 de janeiro de 2013

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LEI No. 12,780, DE January 9, 2013

Disposal on tax measures regarding the realization, in Brazil, of the 2016 Olympic Games and the 2016 Paralympic Games.

P R E S I D E N T A D A R E P B L I C A

I make it known that the National Congress decrees and I sanction the following Law:

Art. 1º This Act has on tax measures applicable to operations directly related to the organization or conduct of events regarding the realization, in Brazil, of the 2016 Olympic Games and the 2016 Paralympic Games.

CHAPTER I

PRELIMINARY PROVISIONS

Art. 2º For the purposes of the provisions of this Act, the following definitions shall be observed:

I-Committee International Olympique-CIO-legal person domiciled abroad, of unlimited duration, in the form of association with legal personality and recognized by the Swiss Federal Council ;

II-companies linked to CIO-legal persons, domiciled abroad or in Brazil, owned or controlled by the CIO, directly or indirectly, in the form defined in § 2º of the art. 243 of Law No. 6,404 of December 15, 1976 ;

III-Olympic Public Authority-APO-public consortium consisting of the Union, the State of Rio de Janeiro and the Municipality of Rio de Janeiro in the form of a special regime ;

IV-Organizing Committee of the Olympic Games Rio 2016-RIO 2016-legal person non-profit, domiciled in Brazil, constituted with the aim of fostering, developing and enabling the requirements provided for in the guarantees established by the Municipality of Rio de Janeiro to the CIO, for the realization of the 2016 Olympics ;

V-Games-the 2016 Summer Games and the 2016 Paralympic Games ;

VI-Events-the Games and the following activities to them related, officially organized, chancellorized, sponsored, or supported by CIO, APO or RIO 2016:

a) CIOcongresses, banquets, opening ceremonies, shutdown, awards, and other ceremonies, preliminary draw, final and any other draw, mascot launches and other launch activities ;

b) seminars, meetings, conferences, workshops and press collectives ;

c) cultural activities, such as concerts, exhibitions, presentations, shows or other cultural expressions, and charitable projects officially sponsored by the CIO, APO or RIO 2016 ;

d) training sessions, of friendlies and official sports competition present at the Games ; and

e) other activities necessary for the achievement or organization of the Games ;

VII-National Olympic Committees-committees domiciled abroad recognized by the CIO and responsible for the representation of the respective country at the Games and for cooperation with governments and non-governmental entities during the Games ;

VIII-International sports federations-legal persons domiciled abroad, who administer each of the modalities of Olympic sports in the world and accompany the organizations that run sports in national scope ;

IX-national and regional entities of administration of Olympic sport-Brazilian Olympic Committee, Brazilian Paralympic Committee and other legal persons under private law that run Olympic sports in Brazil ;

X- World Anti-Doping Agency - WADA - Independent international agency, domiciled abroad, which promotes, coordinates and monitors the fight against drugs in sport ;

XI- Court of Arbitration for Sport -CAS-international arbitration body, domiciled abroad, created to resolve sport-related litigation ;

XII-media companies and credentialed transmitters? legal persons, domiciled in Brazil or abroad, responsible for the image caption and transmission of the Games within their area, as contract struck with the CIO, with company linked to the CIO or the RIO 2016 ;

XIII-sponsors of the Games-legal persons, domiciled in Brazil or abroad, sponsors of the Games based on contractual relationship firsthand directly with the CIO, with company linked to CIO or RIO 2016 ;

XIV-service providers of CIO -legal persons, domiciled in Brazil or abroad, licensed or appointed on the basis of contractual relation by the CIO or by company linked to the CIO to provide services related to the organizing and producing the Events ;

XV-service providers of RIO 2016-legal persons, domiciled in Brazil or abroad, licensed or appointed on the basis of contractual relation by RIO 2016 to provide services related to the organization and production of the Events ;

XVI-volunteers of the Games-physical persons, domiciled in Brazil or abroad, who devote part of their time, without employing employment, to assist in the organization, administration or realization of the Events, before the CIO, the company linked to the CIO or the RIO 2016 ; and

XVII-durable goods-those whose useful life exceeds the period of 1 (one) year.

Single Paragraph. The Executive Power may establish convenient conditions for the defence of national interests, including as to the amount of capital earmarked for operations in the Country and the individualization of its legal representative to remedy any issues and receive official communications.

Art. 3º To enjoy the tax benefits referred to in this Act, the CIO, the companies linked to the CIO, the CAS, the WADA, the National Olympic Committees, the international sports federations, the accredited media and transmitter companies, the sponsors of the Games, CIO service providers and the service providers of RIO 2016 must establish themselves in Brazil if they do, albeit only for organization or holding of the Games, one of the following activities:

I-marketing, held in Brazil, of products and services ; or

II-hiring of physical persons, with or without employing employattic.

Single Paragraph. The Executive Power will be able to have over differentiated and simplified procedures for the establishment in Brazil of the legal persons treated in the caput.

CHAPTER II

DA DISONERATION OF TRIBUTES

I Section

From Exemption in Import

Art. 4º It is granted, in the form laid down in regulation, exemption from payment of federal tributes incidents in imports of goods, goods or services for use or exclusive consumption in activities of their own and directly linked to or realization of the Events, such as:

I-trophies, medals, plates, figurines, badges, flameters, banners and other commemorative objects ;

II-promotional material, printed, leaflets and other goods with similar purpose, to be distributed free of charge or used in the Events ; and

III-other non-durable goods, thus considered those whose useful life is up to 1 (one) year, of the types and in quantities normally consumed in sports activities of the same magnitude.

§ 1º The exemption from which this article deals with the following taxes, contributions and fees:

I-Tax on Industrialized Products-IPI linked to importation, incident in customs disembarster ;

II-Import Tax-II ;

III-Contribution to the Social Integration and Training Programs of the Public Server Heritage incident on the import of goods and services-PIS/Pasep-Importation ;

IV-Contribution to the Financing of Social Security Incident on the import of goods and services? COFINS Import ;

V-Rate of use of the Integrated Trade System of Foreign Trade ;

VI-Use fee of the Electronic Control System of Additional Fundraising to the Freight for the Renewal of the Merchant Navy-AFRMM-MERCANTE ;

VII-Additional to the Freight for the Renewal of the Merchant Navy-AFRMM ;

VIII-Contribution of Intervention in the Economic Domain-CIDE incident on the import of fuels ; and

IX-Contribution to the Program of Stimulation to the Interaction Universities-Company for Innovation Support, instituted by Law No. 10,168 of December 29, 2000.

§ 2º The provisions of this article, observed the requirements set by the Office of the Brazilian Federal Revenue Office of the Ministry of Finance, applies only to the imports promoted:

I-by CIO;

II-per company linked to CIO;

III-by National Olympic Committees ;

IV-by international sports federations ;

V-by WADA ;

VI-by CAS;

VII-by national and regional entities of Olympic sport administration ;

VIII-by RIO 2016 ;

IX-by sponsors of the Games ;

X-per CIOservice providers ;

XI-by service providers of RIO 2016 ;

XII-by accredited media and transmitter companies ; and

XIII-by means of physical or legal person contracted by the persons referred to in the incisos I to XII to represent them.

§ 3º The imports effected in the form of this article will not, in any hypothesis, give the credit of the Contribution to PIS/Pasep and Contribution for the Financing of Social Security-COFINS.

§ 4º The exemption granted under this article will apply, too, to durable goods of which it treats art. 4º whose unit value, ascertained under the rules of Article VII of the General Agreement on Tariffs and Trade-GATT 1994, is equal to or less than R$ 5,000.00 (five thousand reais).

§ 5º (VETADO).

Art. 5º The exemption from which it treats art. 4th does not apply to the importation of durable goods and equipment intended for the Events, which may be admitted to the Country under the Temporary Temporary Admission Scheme, with a suspension of payment of the import-incident tributes.

§ 1º The Regime dealing with caput is applicable, among others, to the following durable goods:

I-technical-sportic equipment ;

II-technical recording equipment and transmission of sounds and images ;

III-medical equipment ; and

IV-office technical equipment.

§ 2º In the hypothesis provided for in the caput, full suspension of the federal tributes related to § 1º of the art will be granted. 4º, including in the case of goods temporarily admitted to the Country for economic use, observed the requirements and conditions set by the Office of the Brazilian Federal Revenue Office of the Ministry of Finance.

§ 3º The presentation of guarantees of the suspended tributes, observed the requirements and conditions set by the Office of the Federal Revenue Office of Brazil of the Ministry of Finance, shall be waived.

Art. 6º The suspension that it treats art. 5º, granted to the goods referred to in their § 1st, shall be converted into exemption, provided that they are used in the Events and that, by up to 180 (one hundred and eighty) days, counted from the end term of the deadline set by the art. 23, be:

I-re-exported to the exterior ;

II-donated to the Union, which will be able to pass them on:

a) social assistance charities, certified under Law No. 12,101 of November 27, 2009, provided that the requirements of the art have been met. 29 of Law No. 12,101 of November 27, 2009 and § 2º of the art. 12 of Law No. 9,532 of December 10, 1997 ; or

b) legal persons of public law ; or

III-donated, directly by the beneficiaries, to:

a) social assistance charities, certified under Law No. 12,101 of November 27, 2009, provided that the requirements of the art have been met. 29 of Law No. 12,101 of November 27, 2009 and § 2º of the art. 12 of Law No. 9,532 of December 10, 1997 ;

b) legal persons of public law ; or

c) sports entities, non-profit entities, sports administration entities, or other non-profit legal persons with social objects related to sports practice, social development, environmental protection or assistance to children, provided that the requirements of paragraphs a to g of § 2º of the art are met. 12 of Law No. 9,532 of December 10, 1997.

§ 1º The entities related in point c of the inciso III of the caput shall be recognized by the Ministries of Sport, Social Development and Combat to the Famer or the Environment, as per criteria to be defined in acts exclaims by the respective certifying bodies.

§ 2º Children's assistance entities referred to in point c of the inciso III of the caput are those that receive resources from the funds controlled by the Municipal, State and National Councils of Rights of the Child and the Adolescent.

§ 3º Sports practice entities referred to in point c of the inciso III of the caput should apply the donations in direct support to sports and sports projects previously approved by the Ministry of Sport.

§ 4º The imports effected in the form of this article will not give, in any hypothesis, the credit of the Contribution to the PIS/Pasep and Cofins.

Art. 7º The Office of the Brazilian Federal Revenue Office of the Ministry of Finance will be able to edit specific normative acts concerning the taxation treatment applicable to the baggage of travellers entering the Country to participate in the Events of which it treats this Law.

Section II

Das Exemptions Granted to Legal People

Art. 8º It is granted to the CIO and the companies to it linked and domiciled abroad, in relation to the generator facts arising from the activities themselves and directly linked to the organization or realization of the Events, exemption from the payment of the following federal tributes:

I-taxes:

a) Tax on the Retained Income in the Source-IRRF ; and

b) Tax on Operations of Credit, Exchange and Insurance, or relating to Securities or Securities-IOF ;

II-social contributions:

a) Contribution to the Social Integration and Training Programs of the Public Server Heritage incident on the import-PIS/Pasep-Importation ; and

b) Contribution to the Financing of Social Security incident on the importation of goods and services-COFINS-Importation ; and

III-intervention contributions in the economic field:

a) Contribution to the Program of Stimulus to the Universidade-Enterprise Interaction for Innovation Support, instituted by Law No. 10,168 of December 29, 2000 ; and

(b) Contribution of Intervention in the Economic Domain for the Development of the National Film Industry-CONDECINE, instituted by the Provisional Measure No. 2.228-1 of September 6, 2001.

§ 1º The exemption provided for in the incisos I and III of the caput applies exclusively:

I-to the income paid, credited, delivered, employed, or remitted:

a) to the CIO or to the companies linked to it, including upon the provision of goods or provision of services ; or

b) by the CIO or by companies linked to it, in the manner provided for in paragraph to;

II-to shipments effected by the CIO or by companies to it linked or by them received ; and

III-to the exchange and insurance operations carried out by the CIO or by companies linked to it.

§ 2º The exemption provided for in paragraphs to and b of the inciso II of the caput refers to the importation of services by the CIO or by companies linked to it.

§ 3º The provisions of this article do not disobligate the legal person domiciled in Brazil and the physical person resident in Brazil who author income of any nature, received from the legal persons of which it treats the caput, of payment of the Income Tax of the Legal Person-IRPJ and the Tax on the Renda of the Physical Person-IRPF, respectively, observed the specific legislation.

§ 4º The exemption that it treats this article does not reach income and capital gains earned on financial operations or disposal of goods and rights.

§ 5º Legal persons dealing with caput, if they hire services executed upon assignment of labor, are under no obligation to retain and collect the predicted previdual contribution in art. 31 of Law No. 8,212 of July 24, 1991.

Art. 9º It is granted to companies linked to the CIO, and domiciled in Brazil, in relation to the generator facts arising from the activities themselves and directly linked to the organization or realization of the Events, exemption from the payment of the following federal tributes:

I-taxes:

a) IRPJ ;

b) IRRF ;

c) IOF incident in the exchange and insurance operation ; and

d) IPI, on the output of products imported from the importer establishment ;

II-social contributions:

a) Social Contribution on Net Profit-CSLL ;

b) Contribution to PIS/Pasep and PIS/Pasep-Importation ; and

c) Cofins and Cofinds-Importation ; and

III-intervention contributions in the economic field:

a) Contribution to the Program of Stimulus to the Universidade-Enterprise Interaction for Innovation Support, instituted by Law No. 10,168 of December 29, 2000 ; and

(b) Contribution to the Development of the National Film Industry-CONDECINE, instituted by the Provisional Measure No. 2.228-1 of September 6, 2001.

§ 1º The exemptions provided for in this article apply exclusively:

I-with respect to paragraph to of the inciso I of the caput and to point to of the inciso II of the caput, to the revenues, profits and income earned by the legal persons referred to in the caput ;

II-as far as point b of the inciso I of the caput and the inciso III of the caput:

a) to the income paid, credited, delivered, employed or remitted, in kind, by the legal persons referred to in the caput; or

(b) to the income paid, credited, delivered, employed or remitted, in kind, to the legal persons referred to in point to of this incision ; and

III-as far as point c of the inciso I of the caput, on the exchange and insurance operations carried out by the legal persons referred to in the caput.

§ 2º The exemption from which it treats point b of the inciso I of the caput does not disobligate the legal persons referred to in the caput of the income tax retention, of which it treats art. 7º of Law No. 7,713 of December 22, 1988.

§ 3º It will not be admitted to the Contribution credits discounts for PIS/Pasep or Cofins, set out respectively in the art. 3º of Law No. 10,637 of December 30, 2002, and at art. 3º of Law No. 10,833 of December 29, 2003 by purchasers, in relation to sales performed by the legal persons referred to in the caput.

§ 4º The legal persons referred to in the caput, if they hire services executed upon assignment of labor, are under no obligation to retain and collect the predicted previdual contribution in art. 31 of Law No. 8,212 of July 24, 1991.

§ 5º The provisions of this article:

I-do not exempt the physical person resident in Brazil who authenticates income or proceeds from any nature arising from the provision of services to the legal person that it treats the caput, of the predicted previdual contributions in the arts. 20 and 21 of Law No. 8,212 of July 24, 1991 ; and

II-does not exempt the legal person from which it treats the caput of collecting the social contribution provided for in paragraph to of the single paragraph of art. 11 of Law No. 8,212 of July 24, 1991 and the contributions administered by the Office of the Brazilian Federal Revenue Office of the Ministry of Finance in the form of the art. 3º of Law No. 11,457 of March 16, 2007, due by law to third parties, thus understood public funds and private entities of social service and vocational training.

§ 6º The provisions of this article do not disobligate the legal persons of which it treats the caput of withholding and collecting the pension contribution of the insured employees and individual contributors to their service, in the terms of art. 30 of Law No. 8,212 of July 24, 1991, and art. 4º of Law No. 10,666 of May 8, 2003.

§ 7º The exemption that it treats this article does not reach income and capital gains earned on financial operations or disposal of goods and rights.

Art. 10. It is granted to RIO 2016, in relation to the generator facts arising from the activities themselves and directly linked to the organization or conduct of the Events, exemption from payment of the following federal tributes:

I-taxes:

a) IRPJ ;

b) IRRF ;

c) IOF ; and

d) IPI, on the output of products imported from the importer establishment ;

II-social contributions:

a) CSLL ;

b) Contribution to PIS/Pasep and PIS/Pasep-Importation ;

c) Cofins and Cofinds-Importation ;

d) social contributions provided for in paragraph to of the single paragraph of art. 11 of Law No. 8,212 of July 24, 1991 ; and

e) contributions administered by the Office of the Brazilian Federal Revenue Office of the Ministry of Finance in the form of the art. 3º of Law No. 11,457 of March 16, 2007, due by law to third parties, thus understood public funds and private entities of social service and vocational training ; and

III-intervention contributions in the economic field:

a) Contribution to the Program of Stimulation to the Interaction Universities-Company for Innovation Support, instituted by Law nº10.168 of December 29, 2000 ; and

b) Condecine, instituted by the Provisional Measure No. 2.228-1 of September 6, 2001.

§ 1º The exemptions provided for in this article apply exclusively:

I-as referred to in point to of the inciso I of the caput and to the point to of the inciso II of the caput, to the revenues, profits and income earned by RIO 2016 ;

II-with respect to paragraph b of the inciso I of the caput and the inciso III of the caput, to the income paid, credited, delivered, employed or referred by RIO 2016 or to the RIO 2016, including by providing goods or the provison of services ; and

III-with respect to point c of the inciso I of the caput, to the credit, exchange and insurance operations carried out by RIO 2016.

§ 2º The exemption from which it treats letter b of the inciso I of the caput does not disobligate RIO 2016 of the income tax retention, of which it treats art. 7º of Law No. 7,713 of December 22, 1988.

§ 3º It will not be admitted to the Contribution credits discounts for PIS/Pasep or Cofins, set out respectively in the art. 3º of Law No. 10,637 of December 30, 2002, and at art. 3º of Law No. 10,833 of December 29, 2003 by purchasers, in relation to sales undertaken by RIO 2016.

§ 4º The provisions of this article do not exempt the physical person resident in the country who earned income or proceeds from any nature arising from the provision of services to RIO 2016 of the predicted previdual contributions in the arts. 20 and 21 of Law No. 8,212 of July 24, 1991.

§ 5º The provisions of this article do not disobligate RIO 2016 of retaining and collecting:

I-the pension contribution of the insured employees and individual contributors to their service, in the terms of art. 30 of Law No. 8,212 of July 24, 1991, and art. 4º of Law No. 10,666 of May 8, 2003 ; and

II-the predicted previdual contribution in art. 31 of Law No. 8,212 of July 24, 1991.

§ 6º The exemption that it treats this article does not reach income and capital gains earned on financial operations or disposal of goods and rights.

Section III

Das Exemptions to Non-resident Physical Persons

Art. 11. They are exempt from paying income tax the income paid, credited, employees, delivered or remitted by the CIO, by companies linked to the CIO, by the National Olympic Committees, by sports federations international, by WADA, by CAS, by media companies, accredited transmitters and by RIO 2016, to non-resident physical persons in Brazil, employed or otherwise hired to work in a personal and direct manner in the organization or realization of the Events, which enter the Country with temporary visa.

§ 1º For the purposes of the provisions of this article, it does not characterize residence in the Country the stay in Brazil during the period of which it treats art. 23, except for the case of obtaining a permanent visa or employment link with person distinct from those referred to in caput.

§ 2º Without prejudice to the agreements, treaties and international conventions concluded by Brazil or the existence of reciprocity of treatment, the other income received from source in Brazil, including the gain of capital in the divestment of goods and rights situated in the Country and income earned in financial operations, by the physical persons referred to in the caput are taxed in accordance with specific standards applicable to non-residents in Brazil.

§ 3º The exemptions from which this article deals apply, inclusive, to referees, judges, physical persons providers of timer and placary services and competitors, being in the case of the latter, exclusively as to the payment of financial rewards as a result of their performance at the Games.

§ 4º The National Olympic Committees, the CAS, WADA and international sports federations, if they hire services executed upon assignment of labor, are under no obligation to retain and collect the contribution predicted previdence in art. 31 of Law No. 8,212 of July 24, 1991.

Section IV

From the Disoneration of Indirect Tributs in the Acquisitions

Performed in the Internal Market

Art. 12. They are exempt from the payment of IPI, in the form established in regulation, the national products acquired by the legal persons mentioned in § 2º of the art. 4º directly from industrial establishment manufacturer, for use or consumption in the organization or conduct of Events

§ 1º The provisions of this article shall not apply to the durable goods and equipment acquired for use in the Events.

§ 2º The exemption provided for in this article will apply, also, in cases of donation and donation in payment, and of any other form of payment, including by providing goods or provision of services.

§ 3º The exemption provided for in this article applies only to goods purchased directly from legal person previously licensed or appointed by the CIO or the RIO 2016 and enabled by the Office of the Federal Revenue Office of Brazil Ministry of the Farm, in the terms of art. 19.

Art. 13. It is suspended payment of the IPI incident on the durable goods purchased directly from industrial establishment, for use in the Events, by the legal persons mentioned in § 2º of the art. 4º.

§ 1º The suspension of which treats caput will be converted into exemption provided that the goods purchased with suspension are used in the Events and that, by up to 180 (one hundred and eighty) days counted from the termination of the deadline set by the art. 23, be:

I-exported to the exterior ; or

II-donated in the manner willing in art. 6º.

§ 2º The suspension provided for in this article applies only to the goods purchased directly from legal person previously licensed or appointed by the CIO or the RIO 2016 and enabled by the Office of the Federal Revenue Office of Brazil Ministry of the Farm, in the terms of art. 19.

§ 3º The suspension provided for in this article will be applied, too, in cases of donation and donation in payment, and of any other form of payment, including by providing goods or provision of services.

Art. 14. The sales of goods and the provision of services occurring in the domestic market for the legal persons mentioned in § 2º of the art. 4º intended exclusively for the organization or the realization of the Events will be effected with suspension of the payment of the Contribution to PIS/Pasep and Cofins.

§ 1º The suspension that it treats the caput will not prevent the maintenance by the sellers or the service providers of the Contribution credits for PIS/Pasep and Cofins tied to the operations carried out with the said hold.

§ 2º The suspension that it treats this article will be converted into exemption after the proof of the use or consumption of the goods or services, of which it treats caput, in the purposes provided for in this Act.

§ 3º Ficam the legal persons mentioned in § 2º of the art. 4º obliged severally to collect, in the condition of those responsible, the unpaid contributions due to the suspension that it treats this article, plus interest and a fine of living, in the form of the specific legislation, calculated from the date of the acquisition, if they do not use or consume the goods or services of which it treats the caput with the purposes provided for in this Act.

§ 4º The suspension provided for in this article applies only to the goods purchased directly from legal person previously licensed or appointed by the CIO or the RIO 2016 and enabled by the Office of the Federal Revenue Office of Brazil Ministry of the Farm, in the terms of art. 19.

§ 5º The suspension, and further conversion into exemption, that it treats this article will in no way give a claim to the credit of the Contribution to the PIS/Pasep and Cofins to the legal persons mentioned in § 2º of the art. 4º.

§ 6º The provisions of this Article shall also apply to durable goods and equipment intended for use in the Events, provided that such goods and equipment are, by up to 180 (one hundred and eighty) days counted from the termination of the established time limit by art. 23:

I-exported to the exterior ; or

II-donated in the manner willing in art. 6º.

§ 7º The Office of the Brazilian Federal Revenue Office of the Ministry of Finance will be able to relate the passable goods of application of the benefits provided for in this article.

V Section

From the Contribution Apuration Regime to PIS/Pasep

and the Cofins

Art. 15. The Contribution to the PIS/Pasep and the Cofins will be ascertained by the legal persons mentioned in § 2º of the art. 4º, when domiciled in Brazil, in the form of art. 8º of Law No. 10,637 of December 30, 2002, and art. 10 of Law No. 10,833 of December 29, 2003.

Section VI

From Sponsor Contrpression in Species,

Goods and Services

Art. 16. The provisions of the arts apply. 12 a 14 to sponsorships in the form of goods provided by sponsor of the Games domiciled in the Country.

Single Paragraph. The sponsorship of which this article is supposed to be directly linked to the contract mentioned in the inciso XIII of the caput of the art. 2º.

Art. 17. The provisions of the arts apply. 8º, 9º and 10 to the sponsorships in kind effected by sponsor of the Games domiciled in the Country.

Single Paragraph. The sponsorship of which this article is supposed to be directly linked to the contract mentioned in the inciso XIII of the caput of the art. 2º.

Art. 18. The provisions of the art apply. 14 to sponsorships in the form of the provision of services effected by sponsor of the Games domiciled in the Country.

Single Paragraph. The sponsorship of which this article is supposed to be directly linked to the contract mentioned in the inciso XIII of the caput of the art. 2º.

CHAPTER III

GENERAL PROVISIONS

Art. 19. The CIO or RIO 2016 will indicate to the Office of the Brazilian Federal Revenue Office of the Ministry of Finance the physical or legal persons entitled to the enjoyment of the enjoyment of the benefits instituted by this Act.

§ 1º The persons indicated by the CIO or the RIO 2016 that meet the requirements set by the Office of the Brazilian Federal Revenue Office of the Ministry of Finance will be empowered under the caput.

§ 2º In the impossibility of the CIO or RIO 2016 indication of the people that it treats the caput, it will be up to the APO to indicate them.

§ 3º Physical and legal persons entitled in the form of caput shall submit common documentation that links them to the activities intrinsic to the realization and organization of the Events, without prejudice to the fulfilment of the requirements to be established by the official bodies referred to in § 1º.

§ 4º The contracts concluded by the physical and legal persons entitled in the form of the caput, that have relation to the organization and the realization of the Events, should be disclosed on electronic site and in physical locations to be defined by the competent bodies, so as to enable monitoring by the whole of society and to give transparency to the process.

Art. 20. The disonerations provided for in this Act apply only to the operations in which the CIO, RIO 2016 and the other legal persons mentioned in the art. 2º to demonstrate, by means of optimal tax or contractual documentation, they are related to the organization or achievement of the Events, in accordance with the regulation provided for in art. 26.

Art. 21. Any federal tributes collected improperly with non-compliance with the provisions of this Act shall be returned in accordance with the rules laid down in the specific Brazilian

Art. 22. The use of the tax benefits granted by this Act, at odds with its terms, will subject the beneficiary, or the tax officer, to the payment of the due tributes and the legal additions, without prejudice to the other penalties cableable.

Single Paragraph. They stay the CIO and RIO 2016 subject to the payments referred to in the caput, in the event of the impossibility or difficulty of identifying the taxable person or the tax officer on grounds of addiction contained in the indication that it treats the art. 19.

CHAPTER IV

FINAL PROVISIONS

Art. 23. The provisions of this Act will be applied to the generator facts that occur between 1st January 2013 and December 31, 2017.

Art. 24. The provisions of this Act in relation to the CIO applies to the International Paralympic Committee - IPC and its linked companies, and the benefits, definitions and other provisions of this Act, regarding the 2016 Olympic Games, cover and regulate legal or physical persons, committees, operations and events of the same nature related to the 2016 Paralympic Games.

Art. 25. (VETADO).

Art. 26. The amendments in the tax legislation after the publication of this Act will be contemplated in specific law designed to preserve the measures now instituted.

Art. 27. The Executive Power shall regulate the provisions of this Act.

Single Paragraph. The Office of the Brazilian Federal Revenue Office of the Ministry of Finance, in the terms of the art. 16 of Law No. 9,779 of January 19, 1999, and the other competent bodies of the federal public administration, within the scope of their powers, shall discipline the application of the provisions of this Act.

Art. 28. (VETADO).

Art. 29. The Executive Power will forward to the National Congress and will be publishing, by the day 1º of August 2018, accountability for the 2016 Olympic Games and 2016 Paralympic Games, in which it is conspicuous, among other information that may be assigned to the Games, the following:

I-total fiscal waiver ;

II-increase in fundraising ;

III-generation of jobs ;

IV-number of foreigners who have joined the Country to attend the Games ; and

V-cost of the works of which they treat the 2016 Olympic Games and Paralympic Games.

Single Paragraph. It shall be the Executive Power forward, annually, between 2013 and 2017, up to the day 1º of August each year, partial account installments, presenting the results regarding the incisos I and II of this article.

Art. 30. At least 60% (sixty per cent) of the goods referring to the 2016 Olympic Games and the 2016 Paralympic Games and the related and officially organized, chancellor, sponsored, or supported events by CIO and Rio 2016, performed in the Country, to be marketed with the logo of the Games and Events, will be able to be produced in Brazil.

Art. 31. This Act shall enter into force on the date of its publication.

Brasilia, January 9, 2013 ; 192º of Independence and 125º of the Republic.

DILMA ROUSSEFF

Nelson Henrique Barbosa Filho