PROVISIONAL MEASURE No 2,222, OF September 4, 2001.

Disposes on taxation, by income tax, of the benefits plans of previdential character.

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

Art. 1st As of , the income and gains earned in the resource applications of the provisions, technical reserves and funds from open provident welfare entities and insurer companies that operate pension character benefit plans, become subject to the incidence of income tax in accordance with the taxation standards applicable to persons physical and non-financial legal persons.

Single paragraph. The tax corresponding to the share of the income or gain appropriate to the participant or assisted by the plan may not be compensated with any tax or contribution due by the legal persons referred to in this article or by the physical person participant or assisted.

Art. 2nd The open or closed entity of supplementary providence, the insurer society and the administrator of the Individual Programmed Retirement Fund-FAPI will be able to opt for regime special of taxation, in which the positive result, earned in each quarter-calendar, of the income and gains of the provisions, technical reserves and funds will be taxed by the income tax to the twenty percent aliquot.

§ 1º The tax of which deals with this article:

I-will be limited to the product of the value of the legal person's contribution by the percentage resulting from the difference between:

a) the sum of the Aliquots of the income tax of legal persons and the social contribution on net profit, inclusive of additional; and

b) eighty percent of the maximum aliquot of the progressive table of the physical person's income tax;

II-will be ascertained quarterly and paid until the last working day of the subsequent month to that of the apuram;

III-will not be able to be compensated with any tax or contribution due by the legal persons referred to in this article or by the participating physical person or assisted.

§ 2nd The option by the regime of which it treats this article replaces the income tax taxation regime on income and earnings earned by closed entity of complementary foresight and by the FAPI, provided for in the current legislation, as well as that of which it treats art. 1st, in respect of the open welfare entities supplementary and the holding companies.

§ 3rd In the case of supplementary pension and insurance company open entity, the limit of which deals with the inciso I of § 1st will be calculated by taking on the basis, exclusively, the contributions received from legal person referring to benefits plans with new entrants starting from .

Art. 3rd The option by the regime referred to in the art. 2nd should take effect until the last working day of the month of November each year, producing effects for the entire subsequent calendar year-calendar.

§ First the closed pension entity and the FAPI will be able to opt for the scheme referred to in art. 2nd to the last working day of the month of December 2001, producing effects for the period from December 31, 2001 to December 31, 2001.

§ 2nd In the hypothesis of § 1st, the period of ascertaining of the tax referred to in art. 2nd will be the quadrimaster.

§ 3rd The option that it treats this article will be formalized by the standards set by the Registry of the Federal Revenue Ministry of the Ministry of Finance.

Art. 4th The willing in the arts. 1st to 3rd does not exclude the incidence of the income tax at the source on the importations paid or credited to the participating or assisted physical person in the form of the current legislation.

Art. 5th The opters by the special scheme of taxation will be able to pay or parceling, until the last working day of the month of January 2002, under the conditions laid down by art. 17 of the Act No 9,779 of January 19, 1999, the debits relating to tributes administered by the Registry of the Federal Revenue Office, incidents on the income and earnings referred to in the art caput. 2nd and the profits that are, in whole or in part, arising from, as well as in relation to the movement of the respective resources.

§ First For the purpose of the provisions of this article, the legal person shall prove the dismissals express and irrevocable from all the court actions that bear the object of the tributes indicated in the caput, and waive any claim of law upon which the said actions are founded.

§ 2nd In the hypothesis of § 1st, the value of the succumbing allowance shall be up to one per cent of the debit value arising from the quaint of the respective legal action.

§ 3rd The provisions of this article also apply to the debits of the same nature of those referred to in the caput that have not been the subject of legal action, whose generative facts have occurred until August 31, 2001.

§ 4th In the parceling hypothesis, the interest referred to in § 4th of the art. 17 of the Act No 9,779, 1999, will be calculated from the month of January 2002.

§ 5th The option by the parceling referred to in the caput will be given by the payment of the first instalment, at the same time set for the payment Integral.

Art. 6th Ficam exempt from income tax the income and earnings earned on the applications of provisions of provisions, technical reserves, and funds regarding benefits and FAPI plans, constituted exclusively with physical person resources or these and immune-legal person.

Single paragraph. The provisions of this article apply to the income and earnings produced from .

Art. 7th Stay held all too many rules that discipline the incidence of income tax on plans of benefits of a previdential or FAPI character, including those concerning the limits and conditions, for the deductions from the base of calculation of the tax, of the contributions made by physical or legal person.

Art. 8th The deduction of the legal person's contributions to life insurance with coverage clause by survival lies:

I-conditioned the option of which treats the art. 2nd of this Provisional Measure;

II-subject, as of , to the limit of which it treats the § 2nd of the art. 11 of the Law no 9,532, of December 10, 1997.

Art. 9th This Interim Measure Takes Effect on the date of its publication.

Brasilia, September 4, 2001; 180th of the Independence and 113th of the Republic.

FERNANDO HENRIQUE CARDOSO

Pedro Malan

Roberto Brant