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Provisional Measure No. 2,037-21, Of 25 August 2000

Original Language Title: Medida Provisória nº 2.037-21, de 25 de Agosto de 2000

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PROVISIONAL MEASURE NO 2.037-21, DE August 25, 2000.

Changes the legislation of Contributions to the Social Security-COFINS, for the Social Integration and Training Programs of Public Server Heritage-PIS/PASEP and the Tax on the Income, 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 aliquot of the contribution to the Social Integration and Training Programmes of Public Server Heritage-PIS/PASEP, due by the legal persons to which and refers § 1º of the art. 22 of Law No. 8,212 of July 24, 1991, is reduced to sixty-five hundredths per cent in relation to the generator facts occurring from 1º February 1999.

Art. 2º The art. 3º of Law No. 9,718 of November 27, 1998, pass vigorously with the following essay:

" Art. 3º ....................................................................................................................................

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§ 2º .........................................................................................................................................

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II-the reversions of provisions and recoveries of lowered credits as loss, which do not represent admission of new revenue, the positive outcome of the valuation of investments by net worth value and profits and dividends derived from investments assessed by the cost of acquisition, which have been computed as revenue ;

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§ 6º In determining the basis of calculation of contributions for PIS/PASEP and COFINS, people legal referred to in § 1º of the art. 22 of Law No. 8,212, 1991, in addition to the exclusions and deductions mentioned in the preceding paragraph, may exclude or deduct:

I-in the case of commercial banks, investment banks, development banks, boxes economic, credit corporations, financing and investment, real estate credit societies, brokerage companies, securities and securities distributors, merchant rental companies and credit unions:

a) expenses incurred in the operations of financial intermediation ;

b) bond expenses for loans, for repass, of resources from institutions of law private ;

c) take off in the allotment of securities ;

d) losses with fixed and variable income securities, except with shares ;

and) losses with financial assets and merchandise, in hedgingoperations.

II-in the case of private insurance companies, the value for the compensation corresponding to the claims occurring, effectively paid, deducted from the imports received for cosinsurance and reinsurance, saved and other restours.

III-in the case of private, open and closed pension entities, income earned in the financial applications intended for the payment of retirement benefits, pension, pechelium and bailouts ;

IV-in the case of capitalisation companies, income earned in financial applications intended for the payment of securities rescue.

§ 7º The exclusions provided for in the incisions III and IV of the preceding paragraph are restricted to income of financial applications provided by the guarantor assets of technical provisions, limited those assets to the amount of the said provisions.

§ 8º In determining the basis of calculation of contribution to PIS/PASEP and COFINS, they may be deducted the caption expenses incurred by legal persons who have per object the securitization of credits:

I-real estate, pursuant to Law No. 9,514 of November 20, 1997 ;

II-financial, observed regulation edited by the National Monetary Council. " (NR)

Art. 3º The § 1º of the art. 1º of Law No. 9,701 of November 17, 1998, passes vigorously with the following essay:

"§ 1º Is vetoed the deduction of any administrative expense." (NR)

Art. 4º The willing on art. 4º of Law No. 9,718, 1998, in its original version, applies, exclusively, in relation to the sales of gasolines, except aviation gasoline, diesel oil and oil-GLP gas-GLP.

Single Paragraph. In diesel oil sales occurred from 1º February 1999, the multiplication fact provided for the single paragraph of art. 4º of Law No. 9,718, from 1998, in original version, is reduced from four to three integers and thirty-three hundredths.

Art. 5º The condensate and natural gas processing units and importers of petroleum-derived fuels, with respect to the sales of automotive gasoline, diesel oil and GLP that they do, are required to charge to collect, in the condition of surrogate contributors, the contributions to the PIS/PASEP and COFINS, due by the distributors and retail traders, observed the same standards applicable to oil refineries.

Art. 6º The Social Contribution on Net Profit-CSLL, instituted by Law No. 7,689 of December 15, 1988, will be charged with the additional:

I-of four percentage points, regarding the generator facts occurring from 1º May 1999 to January 31, 2000 ;

II-of a percentage point, regarding the generator acts occurring from 1º February 2000 a December 31, 2002.

Single Paragraph. The additional one referred to in this article applies, including, in the monthly payment hypothesis by estimated estimate in art. 30 of Law No. 9,430 of December 27, 1996, as well as to legal persons taxed on the basis of the presumed or arbitrated profit.

Art. 7º The aliquot of the CSLL, due by the legal persons referred to in art. 1º is reduced to eight per cent in relation to the generator facts occurring from 1º January 1999, without prejudice to the application of the provisions of the previous article.

Art. 8º The legal persons in art. 1º, which have a negative calculation basis and values added, temporarily, to net profit, for the purpose of ascertaining the CSLL's calculation basis, corresponding to periods of ascertaining closed until December 31, 1998, will be able to opt for scripture, in its asset, as compensable credit with debits of the same contribution, the equivalent value to eighteen percent of the sum of those plots.

§ 1º The legal person who chooses in the manner provided for in this article shall not be able to compute the values that served as the basis of calculation of the said credit in determining the CSLL's calculation basis corresponds rate any period of afterior ascertainment to December 31, 1998.

§ 2º The compensation for credit to which this article refers can only be effected by up to thirty per cent of the remaining CSLL balance, in each period of ascertainment, after the compensation that it treats the art. 8º of Law No. 9,718, 1998, not being admitted, in any hypothesis, to the restitution of its value or its compensation with other tributes or contributions, observed the standards dispatched by the Office of the Federal Revenue Office of the Ministry of Finance.

§ 3º The right to compensation for which it treats the preceding paragraph is limited to the value of the original credit, not being admitted the addition of any value on a monetary or interest update title.

Art. 9º. The tax withheld at source on income paid or credited to the subsidiary, branch, controlled or affiliated of legal person domiciled in Brazil, uncompensated by virtue of the beneficiary being domiciled in country framed in the provisions of the art. 24 of Law No. 9,430, 1996, may be offset by the tax due on the actual profit of the matrix, parent or coalition in Brazil when the results of the subsidiary, branch, controlled or coalition, which contain the said yields, are computed in determining the actual profit of the legal person in Brazil.

Single Paragraph. It applies to the compensation of the tax to which this article is referred to in the art. 26 of Law No. 9,249 of December 26, 1995.

Art. 10. The art. 17 of Law No. 9,779 of January 19, 1999, passes in addition to the following paragraphs:

" § 1º The provisions of this article extend:

I-to cases in which the declaration of constitutionality has been handed down by the Supreme Court Federal, in extraordinary appeal ;

II-the taxpayer or responsible favoured by a definitive judicial decision in tax matters, delivered on any grounds, in any degree of jurisdiction ;

III-to judicial proceedings assisted until December 31, 1998, except for those relating to execution of the Union Active Debt.

§ 2º The payment in the form of the caput of this article applies to the exaction relative to fact generator:

I-occurred from the date of publication of the first Judgment of the Tribunal Plene of the Supreme Court Federal, in the assumption of inciso I of the preceding paragraph ;

II-occurred as of the date of publication of the judicial decision, in the case of inciso II of the prior paragraph ;

III-achieved by the application, in the hypothesis of the inciso III of the preceding paragraph.

§ 3º The payment referred to in this article:

I-matters in unretractable confession of debt ;

II-constitutes extrajudicial confession, in the terms of the arts. 348, 353 and 354 of the Code of Civil Procedure ;

III-it can be parceled in up to six equal, monthly and successive installments, winning the first on the same deadline set in the caput for the full payment and the other ones on the last business day of the subsequent months ;

IV-regarding the tributes and contributions administered by the Office of the Federal Revenue Office, can be effected in single quota, up to the last working day of the month of July 1999.

§ 4º The installments of the parcelial referred to in the incision III of the preceding paragraph shall be increased by interest equivalent to the benchmark rate of the Special Liquidation and Custody Special System-SELIC, for federal securities, accumulated monthly, calculated from the maturity month of the first instalment until the month prior to the payment and one per cent the month of payment.

§ 5º In the hypothesis of the inciso IV of § 3º, the interest referred to in the preceding paragraph shall be calculated from the month of February 1999.

§ 6º The payment under the conditions of this article may be partial, concerning only the given object of the judicial action, when this involves more than one object.

§ 7º In the case of partial payment, the provisions in the incisos I and II of § 3º exclusively reach the paid values.

§ 8º Applies the provisions of this article to contributions raised by the National Institute of the Social Insurance-INSS. " (NR)

Art. 11. It extends the benefit of the dispensation of legal accruals, of which it treats art. 17 of Law No. 9,779, 1999, with the essay given by the previous article, to payments made up to the last working day of the month of September 1999, in single quota, of debits of any nature, together with the Registry of the Federal Revenue Office to the Attorney General of the National Farm, enrolled or not in Active Union Debt, provided that by December 31, 1998 the taxpayer has helped any judicial process where the request covered the exoneration of the debit, even though partially and under any grounds.

§ 1º The dispensation of legal accruals, of which it treats the caput of this article, does not involve fines moratorial or punitive and the interest on arrears due from the month of February 1999.

§ 2º The application for conversion in income to the judge of the made where there is deposit with the purpose of suspending the exigability of credit, or guarantee judgment, amounts to the purposes of the enjoyment of the benefit, to the payment.

§ 3º The enjoyment of the benefit and the low correspondent of the debit involved presupposes application administrative to the governing body of the Office of the Office of the Office of the Federal Revenue Office or the Attorney General of the National Farm Responsible for its administration, instructed with proof of payment or application for conversion in income.

§ 4º In the case of § 2º, the low of the debit involved assumes, in addition to compliance with the provisions of the previous paragraph, the effective conversion into income of the Union of deposited values.

§ 5º If the debit is partially solved or in a parcellar scheme, the benefit shall apply predicted in this article solely on the remaining consolidated value.

§ 6º The provisions of this article shall not entail restitution of paid amounts, nor compensation of debts.

§ 7º The judicial executions for collecting credits from the National Farm Do not suspend, nor if interrupt, by virtue of the provisions of this article.

§ 8º The deadline laid down in art. 17 of Law No. 9,779, 1999, is extended for the last working day of the month of February 1999.

§ 9º Regarding the contributions raised by the INSS, the time limit referred to in the paragraph previous is extended for the last business day of the month of April 1999.

Art. 12. It is suspended, from 1º April to December 31, 1999, the application of Law No. 9,363 of December 13, 1996, which instituted the presumed credit of the Tax on Industrialized Products-IPI, as a real real of contributions to o PIS/PASEP and COFINS, incidents on the value of raw materials, intermediate products, and packaging materials used in the manufacture of products intended for export.

Art. 13. The contribution to PIS/PASEP will be determined based on the payroll, to the aliquot of one per cent, by the following entities:

I-temples of any cult ;

II-political parties ;

III-education and social assistance institutions to which the art refers. 12 of Law No. 9,532 of December 10, 1997 ;

IV-institutions of philanthropic, recreational, cultural, scientific, and associations, to which refers to art. 15 of Law No. 9,532, 1997 ;

V-unions, federations and confederations ;

VI-autonomous social services, created or authorized by law ;

VII-boards of supervision of regulated professions ;

VIII-foundations of private law and public foundations instituted or maintained by Power Public ;

IX-condos of residential or commercial real estate owners ; and

X-the Organization of Brazilian Cooperatives-OCB and the State Organizations of Cooperatives predicted in art. 105 and its § 1º of Law No. 5,764 of December 16, 1971 ;

Art. 14. In relation to the generator facts occurring from 1º February 1999, they are exempted from COFINS the recipes:

I-of the resources received as a repass, originating from the General Budget of the Union, of the States, of the Federal District and the Municipalities, by public companies and mixed economy societies ;

II-from the export of goods to the exterior ;

III-of the services provided to a resident physical or legal person or domiciled abroad, whose payment represents foreign exchange ticket ;

IV-of the supply of goods or services for use or consumption of board in vessels and aircraft in international traffic, when the payment is effected in convertible currency ;

V-of the international transport of loads or passengers ;

VI-earned by Brazilian shipyards in the construction activities, conservation modernization, conversion and repair of vessels pre-registered or registered in the Special Register Brazilian-REB, instituted by Law No. 9,432 of January 8, 1997 ;

VII-of freight of goods transported between Country and exterior by registered vessels in the REB, of which it treats art. 11 of Law No. 9,432, 1997 ;

VIII-of sales carried out by the producer-seller to commercial exporting companies under the Decree-Law No. 1,248 of November 29, 1972, and later amendments, provided that intended for the specific purpose of export to the outside ;

IX-of sales, with specific end of export to overseas, to registered exporting companies at the Foreign Trade Office of the Ministry of Development, Industry and Exterior Trade ;

X-relating to the activities of the entities to which the art refers. 13.

§ 1º They are exempt from the contribution to the PIS/PASEP the revenues referred to in the incisors I to IX of the caput.

§ 2º The exemptions provided for in the caput and in the previous paragraph do not reach the revenues of sales are:

I-the company established in the Franca Zone of Manaus, in the Western Amazon or in the area of free trade ;

II-the company established in export processing zone ;

III-the industrial establishment, for industrialization of products intended for export, to amparo of art. 3º of Law No. 8,402 of January 8, 1992.

Art. 15. Cooperative societies will be able, observed the willing in the arts. 2º and 3º of Law No. 9,718, 1998, exclude from the basis of calculation of COFINS and PIS/PASEP:

I-the values passed on to the associates, arising from the marketing of product by them delivered to the cooperative ;

II-the proceeds from the sale of goods and goods to associates ;

III-the revenue arising from the provision, to associates, of specialized services, applicable in rural activity, relative to technical assistance, rural extension, vocational training and assorted ;

IV-the revenue arising from the beneficiation, storage and industrialization of production of the associated ;

V-the financial revenue arising from rural loan resting contracted together with financial institutions, up to the limit of the charges to these due.

§ 1º For the purposes of the provisions of the inciso II, the exclusion will achieve only the revenue arising from the sale of goods and goods linked directly to the economic activity developed by the associate and which is the object of the cooperative.

§ 2º For the operations referred to in the incisos I a V of the caput:

I-the contribution to the PIS/PASEP will be determined, too, of compliance with the provisions of the art. 13 ;

II-will be accounted for prominently, by the cooperative, and proven by documentation skilled and idle, with the identification of the associate, of the value of the operation, of the species of the good or merchandise and quantities sold.

Art. 16. Cooperative societies that carry out returns of values to the associated legal person, in the hypothesis provided for in the incision I of the previous article, should observe the provisions of the art. 66 of Law No. 9,430, 1996.

Art. 17. They apply to philanthropic entities and social assistance benefit, for the purpose of payment of the contribution to the PIS/PASEP in the form of the art. 13 and enjoyment of the exemption from COFINS, the provisions of art. 55 of Law No. 8,212, 1991.

Art. 18. The payment of the contribution to the PIS/PASEP and COFINS, is to be effected up to the last working day of the first fortnight of the month subsequent to the occurrence of the generator facts.

Art. 19. The art. 2º of Law No. 9,715 of November 25, 1998, passes in addition to the following § 6º.

" § 6º The Office of the National Treasury will make the retention of the contribution to PIS/PASEP, due on the value of the transfers of which treats the inciso III. " (NR)

Art. 20. Legal persons submitted to the taxation scheme on the basis of presumed profit will only be able to adopt the cashier scheme, for the purposes of the incidence of the contribution to the PIS/PASEP and COFINS, in the hypothesis of adopting the same criterion in relation to the income tax of legal persons and CSLL.

Art. 21. Profits, income and capital gains earned abroad subject to the incidence of the CSLL, observed the universal taxation standards of which they treat the arts. 25 a to 27 of Law No. 9,249 of December 26, 1995, the arts. 15 a to 17 of Law No. 9,430, 1996, and the art. 1º of Law No. 9,532, 1997.

Single Paragraph. The balance of income tax paid abroad, which exceeds the compensable value with the income tax due in Brazil, may be offset with the CSLL of life by virtue of the addition, on its basis of calculation, of profits from abroad, up to the limit increased in consequence of that addition.

Art. 22. It applies to the negative calculation basis of CSLL the willing in the arts. 32 and 33 of Decree-Law No. 2,341 of June 29, 1987.

Art. 23. It will be added to the net profit, for the purpose of determining the profit of the holding, the share of:

I-COFINS that there has been compensated, in the terms of the art. 8º of Law No. 9,718, 1998, with CSLL ;

II-CSLL due, after compensation that it treats the earlier incision.

Art. 24. The capital gain arising from the disposal of goods or rights and the settlement or rescue of financial applications, owned by physical person, acquired, to any title, in foreign currency, shall be ascertained in accordance with the provisions of the in this article, kept the remaining standards of the legislation in force.

§ 1º The provisions of this article achieves, inclusive, the foreign currency held in kind.

§ 2º In the assumption of foreign currency disposal held in kind, the tax will be ascertained in the statement of adjustment.

§ 3º The basis of tax calculation will be the positive difference, in Reais, between the disposal value, settlement or rescue and the cost of acquisition of the good or right, foreign currency held in kind or original value of financial application.

§ 4º For the purposes of the provisions of this article, the value of disposal, liquidation or rescue, when expressed in foreign currency, will correspond to its converted quantity in US dollar and then to Reais, upon use of the dollar value for purchase, disclosed by the Central Bank of Brazil for the date of disposal, liquidation or rescue or, in the case of a term of operation or the provision, the date of receipt of each instalment.

§ 5º In the acquisition or application hypothesis, per resident in the Country, with earned income originally in foreign currency, the basis of calculation of the tax will be the positive difference, in US dollars, between the value of disposal, liquidation or rescue and the cost of acquisition of the good or right, converted to Reais upon the use of the value of the dollar for purchase, disclosed by the Central Bank of Brazil for the date of disposal, liquidation or rescue, or, in the case of a term operation or the provision, on the date of receipt of each instalment.

§ 6º Do not focus the income tax on earned earned on disposal, settlement or rescue:

I-of goods located abroad or representative of rights abroad, as well as financial applications, acquired, to any title, in the condition of non-residential ;

II-of foreign currency held in kind, whose total divestments, in the calendar year, are equal to or lower than the equivalent of five thousand U.S. dollars.

§ 7º For the purpose of ascertaining the capital gain that it treats this article, they may be used average dollar quotes, in the form established by the Office of the Federal Revenue Office.

Art. 25. The value received from legal person of public law in the form of housing benefits, not an integral part of the payee's remuneration, in substitution to the right of use of functional real estate, shall be deemed to be of the same nature of this right, not if subjecting to the incidence of the income tax, at the source or in the statement of adjustment.

Art. 26. The basis of calculation of the incident income tax at source on reinsurance premiums ceded to the exterior is eight percent of the paid, credited, delivered, employee or remitted.

Art. 27. The diplomatic missions and consular repartitions of permanent character, as well as the permanent character representations of international bodies that Brazil will be part of, will be able, upon request, to be ressarcated from the value of the IPI incident on products purchased in the domestic market, intended for the maintenance, extension or real estate reform of its use

§ 1º In the case of diplomatic mission and consular allocation, the provisions of this article shall apply, only, in the hypothesis where his country's legislation dispense, in relation to taxes incidents on the value-added or on the retail sale, as the case may be, reciprocal treatment for localized Brazilian missions or repartitions, in character permanent, on its territory.

§ 2º The rebirth to which this article refers will be made second standards laid down by the Secretary of the Federal Revenue Office.

Art. 28. It is responsible for the retention and collection of taxes and contributions, arising from applications in investment funds, the legal person who intermediates resources, together with clients, to make the said applications in funds administered by another legal person.

§ 1º The intermediate legal person of resources should maintain registration and control system, in magnetic medium, which allows the identification of each customer and the elements necessary for the ascertainment of taxes and of the contributions owed by him.

§ 2º The provisions of this article only apply to modalities of resource intermediation disciplined by norms of the National Monetary Council.

Art. 29. The taxation regime of which it treats art applies. 81 of Law No. 8,981 of January 20, 1995, to foreign investors, physical or legal persons, residents or domiciled abroad, who carry out operations in future settlement markets referenced in agri-livestock products, in the scholarships for future and goods.

§ 1º The provisions of this article do not apply to foreign investment from country other than tribute the income or tribute to the aliquot less than twenty per cent, which shall subject itself to the same rules established for the residents or domiciled in the Country.

§ 2º It is responsible for the fulfilment of the tax obligations arising from the planned operations in this article the futures exchange and goods entrusted with the registration of external investment in the Country.

Art. 30. From 1º January 2000, the monetary variations in the credit rights and obligations of the taxpayer, depending on the exchange rate, will be considered, for the purpose of determining the basis of calculation of the income tax, of the social contribution on the net profit of the contribution to the PIS/PASEP and COFINS, as well as the determination of the profit of the holding, when the settlement of the corresponding operation.

§ 1º To the option of legal person, monetary variations may be considered in the determination of the basis of calculation of all tributes and contributions referred to in the caput of this article, under the jurisdiction scheme.

§ 2º The option provided for in the preceding paragraph shall apply to the entire year-calendar.

§ 3º In the case of changing the criterion for recognition of monetary variations, in calendar years subsequent, for the purpose of determining the basis of calculation of tributes and contributions, the standards dispatched by the Office of the Federal Revenue Office shall be observed.

Art. 31. In determining the basis of calculation of the contribution to PIS/PASEP and COFINS may be excluded the share of the financial revenue arising from the monetary variation of the credit claims and the taxpayer's obligations, depending on the rate of cambio, submitted for taxation, under the jurisdiction scheme, relating to periods included in the calendar year 1999, surplus to the value of the monetary variation effectively carried out, even though the corresponding operation has already been liquidated.

Single Paragraph. The provisions of this Article shall apply to the determination of the basis of calculation of income tax and social contribution on profit due by the legal persons submitted to the taxation scheme based on the presumed or arbitrated profit.

Art. 32. It is extended, until August 31, 2000, the deadline of which it treats art. 4º of Law No. 8,248 of October 23, 1991.

Art. 33. The arts. 1º, 2º, 6º-A and 12 of Decree-Law No. 1,593 of December 21, 1977, amended by Law No. 9,822 of August 23, 1999, pass into force with the following amendments:

" Art. 1º The manufacture of cigarettes classified under Code 2402.20.00 of the Tax Incidence Table on Industrialized Products-TIPI, approved by Decree No 2,092 of December 10, 1996, will be exercised exclusively by the companies which, have been available from suitable industrial facilities, have kept special registration at the Office of the Federal Revenue Office of the Ministry of Finance.

§ 1º Companies manufacturers of cigarettes will still be required to constitute themselves in the form of society and with the minimum capital established by the Secretary of the Federal Revenue Office.

§ 2º The grant of the special registration will be given by industrial establishment and will be, too, on production hypothesis conditional on the installation of automatic counters of the quantity produced and, in the terms and conditions to be established by the Office of the Federal Revenue Office, to the proof of the tax regularity by:

I-of the requesting legal person or holder of the special register ;

II-of its associates, physical persons, directors, managers, administrators and prosecutors ;

III-of the controlling legal persons of the legal person referred to in the inciso I, as well as their respective partners, directors, managers, administrators and prosecutors.

§ 3º The provisions of this article also apply to the importation of cigarettes, except when intended for the sale in free store, in the Country.

§ 4º The special registration shall be granted by authority designated by the Secretary of the Revenue Office Federal.

§ 5º From the act that dismissal the application for special registration shall be made appeal to the Secretary of the Revenue Federal, within thirty days, counted from the date on which the taxpayer takes science from dismissal, the decision being final in the administrative sphere.

§ 6º Special registration may also be required of the establishments which industrialize or import other products, to be specified by means of act of the Secretary of the Revenue. "(NR)

" Art. 2º The special registration may be cancelled, at any time, by the granting authority, if, after its grant, one of the following facts occurs:

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§ 2º In the occurrence of the hypotheses mentioned in the incisos I and II of the caput of this article, the company will be subpoenaed to regularise its fiscal situation or to present the clarifications and credible evidence, within ten days.

§ 3º The granting authority of registration will decide on the provenance of the clarifications and the evidence presented, exposing declaratory act cancelling the special registration, in the case of improvenance or lack of regularization of the fiscal situation, giving science of its decision to the company.

§ 4º It will also be exclaimed declaratory act cancelling the special registration if the deadline has elapsed provided for in § 2º without any manifestation of the interested party.

§ 5º From the act that cancelling the special registration shall be appeal to the Secretary of the Federal Revenue Office, without suspension effect, within thirty days, counted from the date of its publication, the decision being final in the administrative sphere.

§ 6º The cancellation of the authorization or its absence implies, without prejudice to the requirement of the taxes and of the contributions due and the imposition of penalties provided for in tax and criminal legislation, seizure of the stock of raw materials, products in elaboration, finished products and packaging materials, existing in the establishment.

§ 7º The stock seized in the form of the previous paragraph may be released if, within ninety-term days, counted from the date of cancellation or the finding of the lack of special registration, is re-established or granted registration, respectively.

§ 8º Will be destroyed in accordance with the provisions of art. 14 of this Decree-Law, the products seized that have not been released, pursuant to the preceding paragraph. " (NR)

" Art. 6º-A. ................................................................................................................................

Single Paragraph. When dealing with national product, the packaging will still contain barcode, in the standard set by the Office of the Federal Revenue Office, and must contain, at the very least, information from the trade mark and the type of packaging. " (NR)

" Art. 12. Cigarettes intended for export may not be sold or exposed for sale in the Country, the manufacturer is obliged to print, typographically or by means of etiquette, on the packaging of each pack or twenty-unit portfolio, as well as in the packages and other envelopes that contain them, in visible characters, the number of the National Cadastro of the Legal Person-CNPJ.

§ 1º The packaging of presentation of cigarettes intended for countries of South America and America Central, including the Caribbean, should contain, without prejudice to the requirement that it treats caput, the expression "Only for export-prohibited sale in Brazil," conceded its replacement by saying with exact correspondence in another language.

§ 2º The provisions of the preceding paragraph shall also apply to packaging intended for sale, to consumption or resale, on vessels or aircraft in international traffic, including by means of ship's chandler.

§ 3º The provisions on the labelling or marking of products provided for in the arts. 43, 44 and 46, caput, of Law No. 4,502 of November 30, 1964, with the amendments of the art. 1º of Decree-Law No. 1,118 of August 10, 1970 and of art. 1º of Law No. 6,137 of November 7, 1974 at art. 1º of Law No. 4,557 of December 10, 1964, with the amendments of the art. 2º of Law No. 6,137, from 1974, and at art. 6º-A of this Decree-Law does not apply to cigarettes intended for export.

§ 4º The provisions of this article do not exclude the requirements regarding the seal of control. " (NR)

Art. 34. The art. 4º of Law No. 7,798 of July 10, 1989, passes vigorously with the following essay:

" Art. 4º The products subject to the schemes of which this Act will pay the tax a single time, re-salvaged the provisions of § 1º:

...........................................................................................................................................................

§ 1º When industrialization is on order, the tax will be due in the output of the product:

I-of the establishment that industrialization ; and

II-of the ordering establishment, whether industrial or equated to industrial, which may credit for the tax charged as per the previous inciso.

§ 2º In the industrialization hypothesis by order, the commission responds solidly with the industrial establishment by fulfilling the main obligation and legal addition.

§ 3º Subject to the payment of the tax, in the condition of liable, the commercial establishment wholesaler who possesses or maintain unaccompanied products from the common documentation of their provenance, or that of them der-leaving. " (NR)

Art. 35. The § 3º of the art. 1º of Law No. 9,522 of December 10, 1997, as amended by Law No. 9,959 of January 27, 2000, passes in force with the following essay:

" § 3º It will not be deductible in the determination of real profit and calculation basis of Social Contribution on Net Profit on interest, on loans, paid or credited to the controlled or related company, independent of the place of their domicile, incidents on value equivalent to profits not made available by controlled companies, domiciled abroad. " (NR)

Art. 36. In the case of sale operation the exporting commercial company, with the specific end of export, the industrial establishment of products classified under subheading 2402.20.00 of the IPI-TIPI Incident Table responds solidly with the commercial exporting company for the payment of taxes, contributions and their legal additions, due in due course of the non-effector of export.

Single Paragraph. The provisions of caput also apply to products intended for the use or consumption of board on vessels or aircraft in international trafficking, including by means of ship's chandler.

Art. 37. Industrial establishments of the products classified under headings 2202 and 2203 of the TIPI shall be subject to the installation of leakage and conducteimeter measuring equipment, as well as appliances for the control, registration and recording of the quantitative measured, in the form, conditions and deadlines set by the Office of the Federal Revenue Office.

§ 1º The Registry of the Federal Revenue Can:

I-accreditation, upon convention, specialized official bodies and national entities representative of the beverage manufacturers, who will be responsible for the hiring, supervision and approval of the installation, boarding, maintenance and repair services of the equipment ;

II-dispense with the installation of the equipment provided for in this article, depending on the limits of production or billing that you set.

§ 2º In the case of inoperation of any of the equipment provided for in this article, the taxpayer shall communicate the occurrence to the unit of the Office of the Office of the Federal Revenue Office with jurisdiction over its tax domicile, within twenty-four hours, and shall maintain control of the volume of production as long as the interruption is to be maintained.

Art. 38. The industrial establishment of beverages subject to the taxation regime by IPI that it treats Law No. 7,798, 1989, is expected to present, in magnetic medium, in the deadlines, models and conditions set by the Office of the Federal Revenue Office:

I-summary table of the records of the leather meters and conductivimeters, as of the date of entry into operation of the equipment ;

II-demonstration of the IPI's ascertainment.

Art. 39. For each period of tax ascertainment, the following fines may be applied:

I-of fifty per cent of the commercial value of the produced goods, not less than R$ 10,000.00 (ten thousand reais):

a) if, as of the twelfth subsequent to the deadline set for the entry into operation of the system, the equipment referred to in art. 37 have not been installed on the grounds of impediment created by the taxpayer ; and

b) if the taxpayer does not comply with any of the conditions referred to in § 2º of the art. 37 ;

II-worth R$ 10,000.00 (ten thousand reais), in the assumption of disfulfilment of the provisions of the article prior.

Art. 40. Industrial establishment has been equipped for wholesale commercial establishments that acquire from establishments importing foreign provenance products, classified in positions 3303 a to 3307 of TIPI.

Art. 41. The Office of the Federal Revenue Office will be able to institute ancillary obligations for the legal persons opting for the Integrated Tax Payment System and Contributions of Microcompanies and Small Business-SIMPLE Companies, instituted by the Law No. 9,317 of 1996 carrying out operations relating to the importation of foreign products.

Art. 42. The maximum adjusted net profit reduction limit, provided for in art. 16 of Law No. 9,065 of June 20, 1995 does not apply to the result arising from the exploitation of rural activity, in respect of the basic compensation of negative calculation of CSLL.

Art. 43. They are reduced to zero the aliquots of the contribution to the PIS/PASEP and COFINS incidents on the gross revenue arising from the sale of:

I-gasolines, except aviation gasoline, diesel oil and GLP, earned by distributors and retailer traders ;

II-alcohol for fuel purposes, when added to petrol, earned by distributors ;

III-alcohol for fuel purposes, earned by the retail traders.

Single Paragraph. The provisions of this Article shall not apply to the sales hypotheses of imported products, which shall be subject to the provisions of the art. 6º of Law No. 9,718, 1998.

Art. 44. Legal persons manufacturers and importers of vehicles classified under headings 8432, 8433, 8701, 8702, 8703 and 8711, and in subheadings 8704.2 and 8704.3 of TIPI, regarding sales they make, shall be required to collect and collect, in the condition of substitute contributors, the contributions to the PIS/PASEP and COFINS, due by the retail merchants.

Single Paragraph. In the hypothesis that it treats this article, the contributions will be calculated on the sale price of the legal person manufacturer.

The value corresponding to the Provisional Contribution on Moving or Transmission of Values and of Credits and Rights of Financial Nature-CPMF, not withheld and not collected by the institutions specified in Law No. 9,311 of October 24, 1996, by injunction force on a security warrant or in wary action, of early tutelage in action of other nature, or of a decision of merit, subsequently revoked, should be withheld and collected by the said institutions, in the form laid down in the following articles.

Art. 46 The institutions responsible for the retention and pickup of CPMF should:

I-ascertain and record the values due in the duration of the impetive judicial decision of the retention and the contribution gap

II-to debit into account of its customers-taxpayers, unless there is expressed manifestation on the contrary

a) on September 29, 2000, regarding injunction, early tuscreens or decisions of merit, revoked until August 31, 2000.

b) on the thirtieth day subsequent to that of the revocation of the judicial measure occurring from 1º million September 2000:

III-collect to the National Treasury, up to the third business day of the week subsequent to the debit at account, the value of the contribution, plus interest of late lives and a fine moratorium, second standards to be established by the Office of the Federal Revenue Office ;

IV-refer to the Registry of the Federal Recita, within thirty days, counted from the date be electable to the debit into account, with respect to taxpayers demonstrating in the opposite direction to the retention, as well to those who, benefited by the repealed judicial measure, have terminated their accounts prior to the dates referred to in the points of the inciso II, as per the case, relation containing the following information.

a) name or social reason of the taxpayer and the respective number of enrolment in the People's Cadastro Physical-CPF or in the National Cadastro of the Legal Person-CNPJ ;

b) value and date of operations that serve as a basis of calculation and the value of the due contribution.

Single Paragraph. In the assumption of inciso IV of this article, the contribution will be required from the taxpayer by means of the release of trade.

Art. 47. Non-fulfilment of the obligations laid down in the arts. 11 and 19 of Law No 9,311, 1996, subject to the legal persons referred to in art. 1º to fines of:

I-R$ 5, to 00 (five reais) per group of five inaccurate, incomplete or omitted information ;

II-R$ 10,000.00 (ten thousand reais) to the month-calendar or fraction, regardless of the sanction provided in the inciso anterio, if the form or other means of information standardized or presented outside the given period.

Single Paragraph. Presented the information, out-of-date, more before any trade procedure, or if, after subpoena, there is the submission within the time limit on this fixed, the fines will be reduced by half.

Art. 48. To the social assistance benefit entity providing false or inaccurate information that results in its undue framing in the predicted hypothesis in art's inciso V. 3º of Law No. 9,311, 1996, will be applied fine of three hundred per center on the value that it has ceased to be withheld, regardless of other administrative or criminal penalties.

Art. 49. The art. 14 Law No. 9,311, 1996, passes vigorously with the following essay:

" Art. 14. In the cases of the release of office will apply the provisions of the arts. 44, 47, 61 of Law No. 9,430 of December 27, 1996. " (NR)

Art. 50. The Office of the Federal Revenue Office shall lower the additional standards required to comply with the provisions of the arts. 45 a to 49, and may even alter the deadlines provided for in art. 46.

Art. 51. The acts practiced on the basis of the Provisional Measure No. 2.037-20, of July 28, 2000, shall be convalidated.

Art. 52. This Provisional Measure comes into effect on the date of its publication, producing effects:

I-from 1º April 2000, regarding the alteration of art. 12 of Decree-Law No. 1,593, of 1977, and the provisions of the art. 34 of this Provisional Measure ;

II-as far as the new essay of the arts is concerned. 4º and 6º of Law No. 9,718, 1998, and to art. 43 of this Provisional Measure, in relation to the generator facts occurring from 1º July 2000, the date on which the effects of the constant standards of the arts cease. 4º to 6º of Law No. 9,718, from 1998, in its original essay, and of the arts. 4º and 5º of this Provisional Measure.

Art. 53. Stay revoked:

I-as of September 28, 1999, the inciso II of the art. 2º of Law No. 9,715 of November 25, 1998 ;

II-as of June 30, 1999:

a) the incisos I and II of the art. 6º of Supplementary Law No. 70 of December 30, 1991 ;

b) the art. 7º of the Supplementary Act No. 70, 1991, and the Supplementary Law No. 85 of February 15, 1996 ;

c) the art. 5º of Law No. 7,714 of December 29, 1988 and Law No. 9,004 of March 16, 1995 ;

d) the § 3º of the art. 11 of Law No. 9,432 of January 8, 1997 ;

e) the art. 9º of Law No. 9,493 of September 10, 1997 ;

f) the inciso II and the § 2º of the art. 1º of Law No. 9,701 of November 17, 1998 ;

g) the § 4º of the art. 2º and the art. 4º of Law No. 9,715 of November 25, 1998 ; and

h) the art. 14 of Law No. 9,779 of January 19, 1999 ;

III-as of 1º January 2000, the § § 1º to 4º of the art. 8º of Law No. 9,718 of November 27, 1998 ;

IV-as of the publication of this Provisional Measure:

a) the inciso XI and the point "a" of the inciso XII of the art. 9º of Law No. 9,317 of December 5, 1996 ;

b) the inciso III of § 2º of the art. 3º of Law No. 9,718, 1998.

Brasilia, August 25, 2000 ; 179º of the independence and 112º of the Republic.

Fernando Henrique Cardoso

Pedro Malan

Marcus Vininicius Pratini of Moraes

Waldeck Ornélas

Attachment (s)