PROVISIONAL MEASURE NO. 280, OF 15 BILLION FEBRUARY.

Altera the Federal Tax Legislation.

THE PRESIDENT OF THE REPUBLIC, in the use of the assignment that gives him the art. 62 of the Constitution, adopts the following Provisional Measure, with force of law:

Art. 1º The art. 1st of Law no 11,119, of May 25, 2005, goes on to invigorate with the following essay:

" Art. 1º The income tax incident on the incomes of physical persons will be calculated according to the following monthly progressive table, in reais:

Progressive Table Monthly

Paragraph single. The annual income tax due, incident on the incomes of which it treats the caput, will be calculated according to annual progressive table corresponding to the sum of the monthly progressive tables prevailing in the months of each year-calendar. " (NR)

Art. 2º The inciso XV of the art. 6th of the Law no 7,713, of December 22, 1988, goes on to invigorate with the following essay:

" XV-the income from retirement and pension, transfer to the paid reserve or retirement, paid by the Social Security of the Union, the states, the Federal District and the Municipalities, by any legal person of internal public law, or by private provident entity, up to the value of R$ 1,257.12 (thousand, two hundred and fifty and seven reais and twelve cents), per month, starting from the month in which the taxpayer completes sixty-five years of age, without prejudice to the exempt plot predicted in the monthly tax incidence table; " (NR)

Art. 3º The arts. 4º, 8º, 10 and 15 of Law No. 9,250, of December 26, 1995, go on to invigorate with the following essay:

" Art. 4º ..........................................................................

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III-the amount of R$ 126.36 (one hundred and twenty-six reais and thirty-six cents) per dependent;

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VI-the amount of R$ 1,257.12 (thousand, two hundred and fifty and seven cents), corresponding to the exempted plot of the income from retirement and pension, transfer to the paid reservation or retirement, paid by the Social Security of the Union, the States, the Federal District and the Municipalities, by any legal person of internal public law, or by private provident entity, starting from the month in which the taxpayer completes sixty-five years of age.

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" Art. 8º ..........................................................................

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II-..........................................................................

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b) to expense payments with instruction from the taxpayer and its dependents, effectuated to educational establishments, up to the individual annual limit of R$ 2,373.84 (two thousand, three hundred and seventy and three reais and eighty-four cents), relatively:

c) to the amount of R$ 1,516.32 (thousand, five-hundred and sixteen reais and thirty-two cents) per dependent;

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" Art. 10. The taxpayer will be able to opt for a simplified discount, which will replace all deductions admitted to the legislation, corresponding to the twenty percent deduction of the value of taxable income in the Annual Adjustment Statement, limited to R$ 11,167.20 (eleven thousand, one hundred and sixty-seven reais and twenty cents), regardless of the amount of these income, dispensed with attestation of the expenditure and the indication of its species.

Paragraph single. The deducted value will not be able to be used for proof of equity, being considered to be consumed income. " (NR)

" Art. 15. In the cases of foreclosing and permanent exit of the national territory, the income tax due will be calculated by using the values corresponding to the sum of the monthly progressive tables concerning the months of the period covered by taxation in the calendar year. " (NR)

Art. 4º The arts. 1º, 2º and 4º of Law No. 7,418, of December 16, 1985, go on to invigorate with the following essay:

" Art. 1º ..........................................................................

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§ 3º The benefit of which treats the caput can also be paid in sinúnia, vetting the cumulative concession with Vale-Transport. " (NR)

" Art. 2º ..........................................................................

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Paragraph single. In the hypothesis of § 3º of the art. 1º, the provisions of this article shall not apply to the value exceeding six per cent of the maximum salary limit-of-contribution of the General Social Welfare Regime. " (NR)

" Art. 4º The granting of the benefit ora instituted entails the acquisition by the employer of the Valleys-Transport or payment in the amount required of the worker's displacements in the residential pathway-work and vice versa, in the service of transport that best suits.

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Art. 5º The payment or retention to the largest of the income tax in the month of February 2006, by virtue of the provisions of this Provisional Measure, will be compensated in the Annual Adjustment Statement corresponding to the calendar year 2006.

Art. 6º This Interim Measure comes into effect on the date of its publication, producing effects from 1º February 2006.

Brasilia, February 15, 2006; 185º of Independence and 118º of the Republic.

LUIZ INÁCIO LULA DA SILVA

Murilo Portugal Son