MEASURE PROVISóRIA NO. 1.943-48, OF January 6, 2000.

Changes the income tax legislation and gives other arrangements.

THE PRESIDENT OF THE REPUBLIC, at the use of the assignment that gives it Article 62 of the Constitution, adopts the following Provisional Measure, with force of law:

Art. 1º The legal person, whose claims with a legal person of public law or with company under his control, public company, economy society or its subsidiary, arising from construction by endeavor, of supply of goods or service provision, are settled by the Public Power with title of its issuance, including with Certificates of Securitization, issued specifically for that purpose, may copulate the share of the profit, corresponding to those claims, that there has been deferred in the form of the provisions of § § 3º and 4º of the art. 10 of the Decree-Law No. 1,598 of December 26, 1977 in the determination of the actual profit of the period-base of the rescue of the securities or of its disposal in any form.

Art. 2º The provisions of the art. 65 of Law No. 8,383 of December 30, 1991 applies, also, in the cases of delivery, by the winning bidder, of government 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 public law, in the cases of deestatization by them promoted.

Art. 3º It gets reduced to fifteen percent the aliquot of the income tax incident in the source on the sums paid, credited, delivered, maids or remitted abroad for the title of royalties of any nature.

Art. 4º It will not focus income tax on the source on the income paid or credited to the company domiciled abroad, by the contraption of telecommunications 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, the corporate network is considered to be the privative telecommunication network of a company or entity, which interconnects its various points of operations in Brazil and abroad.

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

Art. 6º Excluded from the incidence of the income tax at source and in the income statement the value of the rescue of private provident contributions, the burden of which has been on the physical person, received on the occasion of their disbanding of the entity's benefits plan, which match the instalments of contributions effected in the period from 1º to January 1989, to December 31, 1995.

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

Art. 8º Ficam convalidated the acts practiced on the basis of the Provisional Measure No. 1.943-47, of December 9 of 1999.

Art. 9º This Interim Measure takes effect on the date of its publication.

Brasilia, January 6, 2000; 179º of Independence and 112º of the Republic.

FERNANDO HENRY CARDOSO

Pedro Malan