PROVISIONAL MEASURE NO. 252, OF June 15, 2005

Institutes the Special Regime of Taxation for the Platform of Export of Information Technology Services-REPES, the Special Acquisition Scheme of Capital Bens for Exporting Enterprises-RECAP and the Digital Inclusion Programme, has about tax incentives for technological innovation and gives other arrangements.

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

CHAPTER I

OF THE REPES

Art. 1º Stay instituted the Special Taxation Regime for the Service Export Platform of Information Technology-REPES, under the terms and conditions set by the Registry of the Federal Revenue Ministry of the Ministry of Finance.

Art. 2º It is a beneficiary of REPES the legal person who exclusively exercises the activities of software development and the provision of technology services of the information and that, on the occasion of its option by REPES, assume export commitment in excess of eighty per cent of its annual gross income from selling goods and services.

Paragraph single. The willing in the caput does not apply to the legal person who has his or her income, in whole or in part, submitted to the Cumulative Incidence of Contribution to the PIS/PASEP and Contribution to the Funding of Social Security-COFINS.

Art. 3º For the purposes of controlling production and the proving that the contractor of the service provided is resident or domiciled abroad, the beneficiary of the REPES is expected to use computer program in open source.

§ 1º The Registry of the Federal Revenue Office will have access on line, by the Internet, to the information and to the program that it treats the caput, for auditing purposes, with access control upon digital certification.

§ 2º For the purpose of recognition of the use of the software and hardware infrastructure, the programme of which treats the caput will be approved by the Revenue Office Federal.

Art. 4º Stay suspended the requirement of the Contribution to the PIS/PASEP-Import and COFINS-Import incidents on the import of new goods destined for development, in the Country, of software and information technology services, when imported directly by the REPES beneficiary to embedding to your immobilized asset.

§ 1º The suspension of which treats the caput applies also to the Contribution to PIS/PASEP and COFINS incidents on the sale of the said goods in the domestic market, when acquired by legal person benefiting from the REPES.

§ 2º In the tax notes concerning the sale of which it treats § 1º, the expression " Sale effectuated with suspension of the Contribution requirement for PIS/PASEP and COFINS ", with the specification of the corresponding legal device.

§ 3º In the hypothesis of this article, the percent of exports of which it treats art. 2º will be ascertained considering the average obtained, from the commencement of use of the purchased goods under the REPES, during the three-year period.

§ 4º The start-of-use deadline referred to in § 3º shall not be higher than one year, counted from the acquisition.

Art. 5º Stay suspended the requirement of the Contribution to the PIS/PASEP-Import and COFINS-Import incidents on the import of services aimed at the development, in the Country, of software and information technology services, when imported directly by the beneficiary of REPES.

§ 1º The suspension of which treats the caput applies also to the Contribution to the PIS/PASEP and COFINS incidents on the sale of the said services on the domestic market, when acquired by legal person benefiting from the REPES.

§ 2º In the tax notes relating to the services of which it treats § 1º, it should appear the expression " Sale of services effected with suspension of the requirement of the Contribution to the PIS/PASEP and of COFINS ", with the specification of the corresponding legal device.

Art. 6º The suspensions of which treat the arts. 4º and 5º convert to zero aliquot after the course of the five year period counted from the date of occurrence of the respective generative facts.

Art. 7º The adherence to REPES becomes conditional on the tax regularity of the legal person in relation to the federal tributes and contributions.

Art. 8º The beneficiary legal person of the REPES will have the accession cancelled:

I-in the hypothesis of unfulfillment of the export commitment of which it treats art. 2º;

II-whenever it is apt that the beneficiary:

a) did not meet the conditions or did not meet the requirements for adherence; or

b) stopped satisfying the conditions or of meeting the requirements for adherence; and

III-on request.

§ 1º In the occurrence of the cancellation of the membership of the REPES, the legal person of it excluded is obliged to collect interest and fine, from mora or ofletter, counted from the date of the acquisition or the registration of the Import Declaration, as the case may be, regarding unpaid contributions in the event of the suspension of which they treat the arts. 4º and 5º, in the condition of taxpayer, in relation to imported goods or in the condition of responsible, in relation to goods purchased in the domestic market.

§ 2º In the hypotheses that they treat the incisos I and II of the caput, the legal person excluded from the REPES will only be able to effect new membership after the course of the two-year term, counted from the date of the cancellation.

Art. 9º The transfer of ownership or the assignment of use, to any title, of the goods imported or acquired in the domestic market in the form of the caput or § 1º of the art. 4º, before it has complied with the provision of which it treats § 3º of the same article, it should be preceded by pick-up, by the beneficiary of the REPES, of interest and fine, of mora or of trade, in the form of § 1º of the art. 8º.

Art. 10. In the case of art. 9º, if the beneficiary effectuates the transfer of ownership before they decorated two years of the occurrence of the generative facts, the contributions will also be due.

Art. 11. It is vetted adherence to the REPES of optant legal person of the Integrated Tax Payment System and Contributions of Microenterprises and Small Businesses-SIMPLE.

Art. 12. The goods and services benefited by the suspension referred to in the arts. 4º and 5º will be related in regulation.

CHAPTER II

DO RECAP

Art. 13. The Special Regime of Acquisition of Capital Bens of Capital for Exporting Companies-RECAP, under the terms and conditions set by the Registry of the Federal Revenue Office.

Art. 14. It is the beneficiary of RECAP the preponderantly exporting legal person, thus considered the one whose gross revenue arising from export to the outside, in the calendar year immediately preceding the accession to RECAP, there was equal or higher at eighty percent of its total gross sales revenue of goods and services in the period, and that it assumes commitment to maintain that percent of export over the two-year period-calendar.

§ 1º The legal person at the beginning of activity, or who did not hit the year before the percent of export revenue required in the caput, will be able to enable RECAP as long as it assumes commitment to auinjure, in the period of three years-calendar, gross revenue arising from export to the outside of at least eighty percent of its revenue gross total sales of goods and services.

§ 2º The provisions of this article are not applies to legal persons who have their revenues, in whole or in part, submitted to the Cumulative Incidence of Contribution to the PIS/PASEP and COFINS.

Art. 15. The requirement of the Contribution to the PIS/PASEP-Import and COFINS-Import incidents on the import of machinery, apparatus, instruments and equipment, new, related in regulation, when imported directly by the beneficiary of RECAP for incorporation to its immobilized asset.

§ 1º The suspension of which it treats the caput applies also to the Contribution to PIS/PASEP and COFINS incidents on the sale of the said goods in the domestic market, when acquired by legal person benefiting from RECAP.

§ 2º The suspension benefit of which it treats this article could be enjoyed in the acquisitions and imports carried out in the period of three years counted from the date of accession to RECAP.

§ 3º The percentage of exports of which treat the caput and § 1º of the art. 14 will be ascertained considering the average obtained, from the commencement of use of the goods purchased under RECAP, during the period:

I-of two years, in the case of the caput; or

II-of three years, in the case of § 1º of the art. 14.

§ 4º The term of commencement of use referred to in § 3º will not be able to be more than three years.

§ 5º The legal person who gives a diverse destination of the provided for in the caput, resell the good before the deadline referred to in the incisos I or II of § 3º, as the case may be, or do not meet the remaining conditions of which it treats art. 14, is obliged to collect interest and fine, of mora or of trade, counted as of the date of the acquisition, concerning the unpaid contributions in due to the suspension of which it treats this article, in the condition:

I-de taxpayer, in relation to the Contribution to the PIS/PASEP-Import and COFINS-Importation; or

II-de-responsible, in relation to the Contribution to the PIS/PASEP and to COFINS.

§ 6º In the tax notes relating to the sale of which it treats § 1º should appear the expression "Sale effected with suspension of the requirement of the Contribution to the PIS/PASEP and COFINS", with the corresponding legal device specification.

§ 7º The suspension of which treats this article converts to zero aliquot after fulfilled the conditions of which they treat the caput and § 1º of the art. 14.

§ 8º The legal person who will make the commitment that it treats § 1º of the art. 14 may still, observed the same conditions established there, use the suspension benefit of which it treats art. 40 of Law No. 10,865, of April 30, 2004.

Art. 16. Adherence to RECAP becomes conditional on the tax regularity of the legal person in relation to the federal tributes and contributions.

CHAPTER III

DOS INCENTIVES FOR TECHNOLOGICAL INNOVATION

Art. 17. The legal person will be able to enjoy the following tax incentives:

I-deduction, for the purpose of ascertaining net profit, of value corresponding to the sum of expenditures carried out in the period of ascertaining with technological research and development of technological innovation, classifiable as operating expenses by the legislation of the Tax on the Income of the Legal Person-IRPJ, or as payment in the form provided for in § 2º;

II-reduction of fifty per cent of the Industrialized Products Tax-IPI incident on equipment, machinery, apparatus and instruments, as well as the spare accessories and tools that accompany these goods, intended for research and technological development;

III-accelerated depreciation, calculated by the application of the usually admitted depreciation rate, multiplied by two, without prejudice to the normal depreciation of the machines, equipment, appliances and new instruments, intended for use in the technological research and technological innovation development activities, for the purpose of IRPJ ascertaining;

IV-accelerated amortization, upon deduction as a cost or operating expense, in the period of ascertaining in which are effectuated, of the expenditures concerning the acquisition of intangible goods, linked exclusively to the technological research activities and development of technological innovation, classifiable in the beneficiary's deferred asset, for effect of Investigation of the IRPJ;

V-credit of income tax withheld at source, incident on the values paid, remitted or credited to beneficiaries residing or domiciled abroad, for the title of royalties, technical or scientific assistance and specialized services, provided for in technology transfer contracts averaged or registered under the terms of Law No. 9,279 of May 14, 1996, in the following percentage:

a) twenty percent, relative to the periods of ascertaining ended from 1º January 2006 to December 31, 2008;

b) ten percent, relative to the periods of ascertaining closed from 1º January 2009 to 31 of December 2013; and

VI-zero reduction of the aliquot of income tax withheld in the source in the consignments made to the outside intended for the registration and maintenance of brands, patents and cultivars.

§ 1º Considerate technological innovation the design of new product or manufacturing process, as well as the aggregation of new functionalities or characteristics to the product or process that implies incremental improvements and effective gain of quality or productivity, resulting greater competitiveness in the market.

§ 2º The willing in the inciso I of the caput applies also to expenditures with technological research and development of technological innovation contracted in the Country with university, research institution and independent inventor of which treats the inciso IX of the art. 2º of Law No. 10,973 of December 2, 2004, by staying the legal person who has effected the disservice with responsibility, the business risk, the management and control of the use of the results of the expenditures.

§ 3º In the hypothesis of expenditures with technical, scientific, or resembling assistance and royalty assistance by industrial patents paid to the physical or legal person abroad, the deductibility is conditional on the observance of the provisions of the arts. 52 and 71 of Law No. 4,506 of November 30, 1964.

§ 4º In the apuration of the expenditures carried out with technological research and development of technological innovation, will not be computed the amounts allocated as non-refundable resources by organs and entities of the Public Power.

§ 5º The benefit to which refers to the inciso V of the caput can only be enjoyed by the legal person who takes the commitment to carry out expenditures in research in the Country, in amount equivalent to, at a minimum, double the value of this benefit.

§ 6º The deduction of which treats inciso I of the caput applies for the purpose of ascertaining the calculation basis of the Social Contribution calculation basis on the Net Profit-CSLL.

§ 7º The legal person beneficiary of the incentives that it treats this article is bound to provide, in electronic means, information about the research programs, technological development and innovation, in the form established in regulation.

Art. 18. They can be deducted as operating expenses, in the form of the inciso I of the art caput. 17 and of its § 6º, the importances transferred to microenterprises and small enterprises of which it treats Law No. 9,841 of October 5, 1999 aimed at the execution of technological research and development of technological innovation of interest and on account and order of the legal person who promoted the transfer, yet the legal person receiving such importances comes to have a stake in the economic outcome of the resulting product.

§ 1º The willing in this article applies to the transfers of resources effected to independent inventor of that treats the inciso IX of the art. 2º of Law No. 10,973, of 2004.

§ 2º Do not constitute revenue of microenterprises and small size company, nor independent inventor yield, the importances received in the form of the caput, provided that it is used in full in the realization of the research or development of technological innovation.

§ 3º In the hypothesis of § 2º, for microenterprises and small-sized companies that it treats the caput that ascertains the income tax based on actual profit, expenditures effected with the execution of technological research and development of technological innovation will not be deductible in the apuration of the actual profit and calculation basis of CSLL.

Art. 19. Without prejudice to the provisions of the art. 17, as of the 2006 calendar year, the legal person will be able to exclude from the net profit, in the determination of the actual profit and calculation basis of CSLL, the value corresponds to up to sixty percent of the sum of the expenditures carried out in the period of ascertaining with technological research and development of technological innovation, classifiable as expenditure by the IRPJ legislation, in the form of the inciso I of the art caput. 17.

§ 1º The exclusion of which treats the caput will be able to reach up to eighty per cent of the expenditures depending on the number of employed researchers hired by the legal person, in the form to be defined in regulation.

§ 2º In the legal person hypothesis that is devoted exclusively to research and technological development, they may also be considered, in the form of the regulation, the partners who exercise research activity.

§ 3º Without prejudice to the willing in the caput and in § 1º, the legal person will be able to exclude from the net profit, in the determination of the actual profit and calculation basis of CSLL, the value corresponds to up to twenty percent of the sum of the expenditures or payments linked to technological research and development of technological innovation object of patent granted or cultivar registered.

§ 4º For the purposes of the provisions of § 3º, the expenditures and payments shall be registered in Part B of the Royal Profit Purpose Book-LALUR and excluded in the period of ascertaining the granting of the patent or the registration of the cultivar.

§ 5º The exclusion of which treats this article is limited to the value of the real profit and calculation basis of CSLL before the exclusion itself, vetted the harnessing of the eventual excess in a later ascertaining period.

§ 6º The provisions of § 5º do not apply to the legal person referred to in § 2º.

Art. 20. For the purposes of the provisions of this Chapter, the figures for expenditures incurred on fixed installations and in the acquisition of apparatus, machinery and equipment, intended for use in research and technological development projects, metrology, technical standardization and conformity assessment, applicable to products, processes, systems and personnel, authorization procedures of records, licences, homologations and their correlates forms, as well as concerning protection procedures of intellectual property, may be depreciated or amortized in the form of the prevailing legislation, and the undepreciated or unamortized balance may be excluded in the determination of the actual profit, in the period of ascertaining in which it has completed its use.

§ 1º The value of the excluded balance in the form of the caput is to be controlled in Part B of the LALUR and will be added, in the determination of the actual profit, in each subsequent ascertaining period, by the value of the normal depreciation or amortization that comes to be accounted for as operating expense.

§ 2º The legal person benefiting from depreciation or accelerated amortization under the incisies III and IV of the art caput. 17 you will not be able to use the benefit of which it treats the caput of this article in respect of the same assets.

§ 3º The accelerated depreciation or amortization of which treat the incisos III and IV of the art caput. 17, as well as the exclusion of the undepreciated or non-amortized balance in the form of the caput of this article do not apply for the purpose of ascertaining the CSLL calculation basis.

Art. 21. The Union, through the agencies of fomenting sciences and technology, will be able to undersell up to fifty percent of the value of the remuneration of researchers, titled as masters or doctors, employed in technological innovation activities at companies located in the Brazilian territory, in the form of the regulation.

Art. 22. The expenditures and payments of which treat the arts. 17 a 20:

I-should be controlled accounting in specific accounts; and

II-only be able to be deducted if paid to resident physical or legal persons and Domiciliated in the Country, except payments for obtaining and maintaining patents and trademarks abroad.

Art. 23. The enjoyment of the tax benefits and the grant of which they treat the arts. 17 a 21 is conditional on the substantiation of the tax regularity of the legal person.

Art. 24. The terms, limits and conditions for the fruition effect of the tax incentives mentioned in the arts. 17 a 21 will be the object of regulation.

Art. 25. The defulfillment of any obligation assumed to obtain the incentives of which they treat the arts. 17 a 22, as well as the misuse of the tax incentives in them, imply forfeiture of the right to the as yet unused incentives and the pick-up of the value corresponding to the unpaid tributes in due to the incentives already used, increased fine and interest, of mora or trade, provided for in the tax legislation, without prejudice to the criminal penalties that are liable.

Art. 26. The Industrial Technology Development Programs-PDTI and Agrolivestock Technological Development Programs-PDTA and the projects approved until December 31, 2005 will be governed by the legislation in force on the date of publication of this Interim Measure, authorized the migration to the regime in it provided for, as disciplined in regulation.

Art. 27. The provisions of this Chapter do not apply to legal persons who use the benefits of which they treat the Laws in the 8,248, of October 23, 1991, 8,387, of December 30, 1991, and 10,176, of January 11, 2001.

CHAPTER IV

OF THE DIGITAL INCLUSION PROGRAM

Art. 28. They become reduced to zero the Contribution aliquots for PIS/PASEP and COFINS incidents on gross sales revenue, retail, of digital processing units classified under IPI-TIPI Incidence Table code 8471.50.10.

§ 1º The reduction of aliquots of which treats the caput achieves sales revenue of input units sorted into the codes 8471.60.52 (keyboard) and 8471.60.53 (exclusively mouse), and the output unit by video sorted into code 8471.60.72 (monitor), all from TIPI, when sold along with the unit of digital processing.

§ 2º The products of which it treats this article must meet the terms and conditions set out in regulation, including as to the value and technical specifications.

Art. 29. In the sales effected in the form of the art. 28 does not apply to withholding the source of the Contribution to the PIS/PASEP and the COFINS to which the art relates. 64 of Law No. 9,430, of December 27, 1996, and the art. 34 of Law No. 10,833, of December 29, 2003.

Art. 30. The provisions of the arts. 28 and 29:

I-do not apply to sales effected by an opting company by the SIMPLE; e

II-apply to the sales effected until December 31, 2009.

CHAPTER V

OF THE INCENTIVES TO THE MICRO-REGIONS OF ADA AND ADENE

Art. 31. Without prejudice to the remaining standards in force applicable to the matter, for goods purchased from the year-calendar year 2006 and until December 31, 2013, legal persons who have approved project for installation, extension, modernization or diversification framed in sectors of the economy considered to be prioritised for regional development, in less developed micro-regions located in the acting areas of the North-East Development Agency-ADENE and the Agency of Development of Amazonia-ADA, will be entitled:

I-to accelerated depreciation encouraged, for the purpose of calculating the income tax;

II-at the discount, in the period of twelve months counted from the acquisition, from the credits of the Contribution to the PIS/PASEP and COFINS of which they treat the inciso III of § 1º of the art. 3º of the Laws in the 10,637, of December 30, 2002, and 10,833, of 2003, and the § 4º of the art. 15 of Law No. 10,865 of April 30, 2004 on the hypothesis of procurement of machines, appliances, instruments and equipment, new, related in regulation, intended for incorporation to its immobilized asset.

§ 1º The micro-regions achieved, as well as the limits and conditions for fruition of the benefit referred to in this article will be set out in regulation.

§ 2º The fruition of this benefit lies conditioned to the fruition of the benefit of which it treats art. 1º of the Provisional Measure No. 2.199-14 of August 24, 2001.

§ 3º The depreciation accelerated incentivised that it treats the caput consists of the integral depreciation, in the year itself of the acquisition.

§ 4º The accelerated depreciation quota, corresponding to the benefit, will constitute the exclusion of net profit for the purposes of determination of real profit, and shall be scripted in the LALUR.

§ 5º The total accumulated depreciation, including normal and accelerated, you will not be able to overcome the cost of acquiring the good.

§ 6º From the period of ascertaining in which the limit of which it treats § 5º is reached, the value of the normal depreciation, recorded in the commercial bookkeeping, is to be added to the net profit for the purpose of determination of the actual profit.

§ 7º The credits of which it treats the inciso II of the caput will be ascertained upon application, each month, of the aliquots referred to in the art caput. 2º of the Laws in the 10,637, from 2002, and 10,833, of 2003, on the value corresponding to a twelve avos of the acquisition cost of the good.

§ 8º Unless express permission is expressed in law, the tax benefit of which it treats this article cannot be cumulatively enjoyed with other identical ones.

CHAPTER VI

DO SIMPLE

Art. 32. The art. 15 of Law No. 9,317 of December 5, 1996, it passes the invigoration with the following essay:

" Art. 15. ..........................................................................

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II-from the subsequent month to what inrush the exclusionated situation, in the hypotheses that they treat incisions III to XIV and XVII to nineteenth of art. 9º;

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VI-from the subsequent calendar year-calendar of the science of the declaratory act of exclusion in the cases of the incisions XV and XVI of the art. 9º.

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§ 5º In the inciso VI hypothesis of the caput, it will be allowed to remain the legal person as optant by the SIMPLE upon a proving, together with the unit of the Registry of the Federal Revenue Officer with jurisdiction over its tax domicile, of the discharge of the debit inscribed within up to thirty days counted from the science of the declaratory act of exclusion. " (NR)

CHAPTER VII

FROM IRPJ And DA CSLL

Art. 33. The art. 15 of Law No. 9,249 of December 26, 1995, it passes on the invigorating addition of the following paragraph:

" § 4º The percent of which treats this article will also be applied on the financial revenue of the legal person who explore real estate activities concerning land lotting, real estate incorporation, construction of buildings intended for sale, as well as the sale of real estate built or purchased for the resale, when arising from the marketing of real estate and for spurred by means of indexes or coefficients predicted in contract. " (NR)

Art. 34. The art caput. 1º of Law No. 11,051 of December 29, 2004, it passes the invigoration with the following essay:

" Art. 1º The legal persons taxed on the basis of real profit will be able to use credit concerning the Social Contribution on Net Profit-CSLL, at the reason of twenty-five per cent on the accounting depreciation of machines, apparatus, instruments and equipment, new, related in regulation, acquired between 1º October 2004 and December 31, 2006, intended for the immobilized asset and employees in industrial process of the acquirer. " (NR)

CHAPTER VIII

OF THE PHYSICAL PERSON' S INCOME TAX

Art. 35. The art. 22 of Law No. 9,250 of December 26, 1995, it passes the invigoration with the following essay:

" Art. 22. It is exempt from the income tax the capital gain earned on the disposal of goods and rights of small value, whose unit price of divestment, in the month in which this one takes place, is equal to or less than:

I-R$ 20,000.00 (twenty thousand reais), in the case of alienation from shares traded on the over-the-counter market;

II-R$ 35,000.00 (thirty-five thousand reais), in the remaining cases.

.......................................................................... " (NR)

Art. 36. It is exempt from the income tax the earned earned per physical person resident in the Country in the sale of residential real estate, provided that the disposant, within the term of one hundred and eighty days counted from the conclusion of the contract, apply the proceeds of the sale on the acquisition of residential real estate.

§ 1º In the case of sale of more than one real estate, the term referred to in this article will be counted from the date of conclusion of the contract relating to the first operation.

§ 2º The partial application of the proceeds of the sale will imply taxation of the gain, proportionally, to the value of the unapplied parcel.

§ 3º In the case of acquisition of more than one real estate, the exemption of which treats this article will apply to the gain of capital corresponding to the parcel employed in the residential real estate acquisition.

§ 4º Failure to comply with the conditions set out in this article will impose on demand of the tax on the basis of the capital gain, plus:

I-late-interest rate, calculated from the second month subsequent to the receipt of the value or parcel of the value of the real estate sold; and

II-fine, of mora or of trade, calculated from the second month following the receipt of the value or of share of the value of real estate sold, if the tax is not paid up to thirty days after the deadline of which it treats the caput.

§ 5º The physical person will only be able to enjoy the benefit of which it treats this article once every five years.

Art. 37. For the ascertaining of the base of calculation of the income tax incident on the capital gain on the occasion of the divestance, to any title, of real estate carried out by resident physical person in the Country, reduction factor (FR) of the Capital gain ascertained.

§ 1º The reduction factor referred to in the caput will be determined by the following formula: FR = 1 / 1.0035m, where "m" corresponds to the number of months elapsed between the date of acquisition of the immovable and that of its disposal.

§ 2º In the real estate hypothesis acquired until December 31, 1995, the reduction factor of which treats the caput will be applied from 1º January 1996, without injury of the provisions of the art. 18 of Law No. 7,713, of December 22, 1988.

CHAPTER IX

OF THE CONTRIBUTION TO THE PIS/PASEP AND THE COFINS

Art. 38. The § 8º of the art. 3º of Law No. 9,718 of November 27, 1998, it passes on the invigorating addition of the following inciso:

" III-agricultural, as an act of the National Monetary Council?. (NR)

Art. 39. The art. 3º of Law No. 10,485 of July 3, 2002, passes the invigoration with the following essay:

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

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§ 3º Are subject to the withholding of the contribution to PIS/PASEP and COFINS the payments regarding the acquisition of auto parts set in Annexes I and II of this Act, except pneumatics, when effected by legal person manufacturer:

I-of parts, components, or sets intended for the related products in art. 1º;

II-of related products in the art. 1º.

§ 4º The value to be retained in the form of § 3º constitutes anticipation of the contributions owed by the legal persons supplier and shall be determined by application, on the importance to be paid, of the percentage of one tenth per cent for the Contribution to the PIS/PASEP and five tenths per cent for COFINS.

§ 5º The value withheld in the fortnight is to be collected until the last working day of the subsequent fortnight to the one where payment has occurred.

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§ 7º The withholding at the source of which treats § 3º:

I-do not apply in the case of payment effected the legal person opting for the Integrated Tax Payment System and Contributions of Microenterprises and Small Sized Enterprises-PLAIN and the wholesale or retailer dealer;

II-achieves also the payments effected by service of industrialization in the case of industrialization by order. " (NR)

Art. 40. The arts. 10 and 15 of Law No. 10,833, of 2003, go on to invigorate with the following essay:

" Art. 10. ..........................................................................

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XXVI-the revenues concerning the activities of reselling real estate, dismemberment or loosening of land, incorporation real estate and building construction intended for sale, when arising from long term contracts firmed before October 30, 2003;

.......................................................................... " (NR)

" Art. 15. ..........................................................................

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V-nos incisos VI, IX to XXVI of the caput and in § § 1º and 2º of the art. 10;

.......................................................................... " (NR)

Art. 41. The arts. 7º, 8º, 28 and 40 of Law No. 10,865, of 2004, go on to invigorate with the following essay:

" Art. 7º ..........................................................................

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§ 5º For the purpose of the provisions of § 4º does not include the plot referred to in point "and" of the inciso V of the art. 13 of the Supplementary Act no 87, of September 13, 1996. " (NR)

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

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§ 12. ..........................................................................

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XIII-preparations composed of nonalcoholic compounds, classified in the code 2106.90.10 Ex 01, of TIPI, intended for the elaboration of beverages by the industrial legal persons of the products referred to in art. 49 of Law No. 10,833, of 2003.

.......................................................................... " (NR)

" Art. 28. ..........................................................................

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VII-preparations composed of nonalcoholic, classified in the code 2106.90.10 Ex 01, of the TIPI, intended for the elaboration of beverages by the industrial legal persons of the products referred to in art. 49 of Law No. 10,833, of 2003.

.......................................................................... " (NR)

" Art. 40. ..........................................................................

§ 1º For the purposes of the provisions of the caput, it considers itself to be preponderantly exporting the one whose gross revenue arising from export to the outside, in the calendar year immediately previous to that of the acquisition, there have been more than eighty percent of its total gross revenue from selling goods and services in the same period.

.......................................................................... " (NR)

Art. 42. The arts. 2º and 10 of Law No. 11,051, of 2004, go on to invigorate with the following essay:

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

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§ 2º The provisions of this article apply to the acquisitions effected after 1º October 2004. " (NR)

" Art. 10. ..........................................................................

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III-for related auto parts in Annexes I and II to Law No. 10,485, of July 3, 2002:

a) in the inciso I of art. 3º of Law No. 10,485, of 2002, in the case of sale to the legal persons in it related; or

b) in the inciso II of the art. 3º of Law No. 10,485, of 2002, in the case of sales to the legal persons in it related;

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

§ 2º The Contribution to the PIS/PASEP and COFINS will focus on the gross revenue earned by the legal person executor of the order to the aliquots of one whole and sixty-five hundred percent and of seven integers and six tenths per cent respectively.

§ 3º For the effects of this article apply the concepts of industrialization by order of the Excise on Industrialized Products-IPI. " (NR)

Art. 43. In the acquisitions of aluminum scrap, classified under the TIPI code 7602.00, effected by legal person carrying out smelting activity, it is vetted to use the credit of which it treats the inciso II of the art caput. 3º of Law No. 10,637, of 2002, and the inciso II of the art caput. 3º of Law No. 10,833, of 2003.

Art. 44. The incidence of the Contribution to the PIS/PASEP and COFINS stands suspended in the case of sale of aluminium scrap, classified under code 7602.00 of the TIPI, for legal person who appoints the income tax on the basis of the actual profit and that exerts the activity of foundry.

Single paragraph. The suspension of which treats the caput does not apply to sales effected by legal person opting for the SIMPLE.

CHAPTER X

DO IPI

Art. 45. The § 2º of the art. 43 of Law No. 4,502 of November 30, 1964, it passes the invigoration with the following essay:

"§ 2º The indications of the caput and its § 1º will be made in the form of the regulation." (NR)

Art. 46. The art. 6º of Law No. 9,363 of December 13, 1996, it passes the invigoration with the following essay:

" Art. 6º The Office of the Federal Revenue Officer will expedite the necessary instructions for compliance with the provisions of this Act, including as to the requirements and periodicity for ascertaining and for fruition of the presumed credit and its ressaration, to the definition of export revenue and the comprotory tax documents of the releases, to that title, effected by the exporting producer. " (NR)

CHAPTER XI

OF TAX PICKUP DEADLINES AND CONTRIBUTIONS

Art. 47. In relation to the generating facts occurring from 1º January 2006, the Income Tax Returns held at Source-IRRF and of the Tax on Credit Operations, Exchange and Insurance, or Relatives to Securities or Securities-IOF will be effected on the following deadlines:

I-IRRF:

a) on the date of the occurrence of the generator fact, in the case of:

1. income attributed to residents or domiciliates abroad; and

2. payments to unidentified beneficiaries;

b) until the third working day subsequent to the occurrence of the occurrence of the generative facts, in the case of:

1. interest on equity and financial applications, inclusive of those assigned to residents or domiciled abroad, and capitalization securities;

2. awards, inclusive of those distributed in the form of goods and services, obtained in contests and sorteds of any kind and profits arising from these awards; and

3. fine or any advantage, of which it treats art. 70 of Law No. 9,430, of 1996;

c) until the last working day of the subsequent month to the termination of the period of ascertainment, in the case of income and capital gains distributed by the real estate investment funds; and

d) until the last working day of the first decent of the month subsequent to the occurrence month of the generative facts, in the remaining cases;

II-IOF:

a) until the third business day subsequent to the occurrence of the occurrence of the generative facts, in the case of gold acquisition, financial asset; and

b) until the third business day subsequent to the decennial of the collection or the tax ledger of the tax, too much cases.

Single paragraph. Exceptionally, in the hypothesis that it treats the "d" point of the inciso I, in relation to the generative facts occurred:

I-in the month of December 2006, the pickups will be effectuated:

a) until the third working day of the subsequent decent, for the generative facts occurred in the first and second decendiums; and

b) until the last working day of the first Decentrus of the month of January 2007, for the generating facts occurred in the third decendition;

II-in the month of December 2007, the pickups will be checked out:

a) until the third working day of the second decenum, for the generative facts occurred in the first decendid; and

b) until the last working day of the first decenum of the month of January 2008, for the generating facts occurred in the second and the third decendia.

Art. 48. The § 1º of the art. 63 of Law No. 8,981 of January 20, 1995, it passes the invigoration with the following essay:

"§ 1º The tax of which treats this article will focus on the market value of the premium, on the date of distribution." (NR)

Art. 49. The single paragraph of the art. 10 of Law No. 9,311 of October 24, 1996, it passes the invigoration with the following essay:

" Single paragraph. Payment or retention and the pick-up of the contribution will be effected at a minimum once per decendition. " (NR)

Art. 50. The § 2º of the art. 70 of Law No. 9,430, 1996, goes on to invigorate with the following essay:

"§ 2º The tax is to be withheld on the date of payment or credit of the fine or advantage." (NR)

Art. 51. The art. 35 of Law No. 10,833, 2003, goes on to invigorate with the following essay:

" Art. 35. The values withheld in the fortnight in the form of the arts. 30, 33 and 34, should be collected from the National Treasury by the public body that effectuate the withholding or, centrally, by the establishment matrix of the legal person, until the last working day of the subsequent fortnight to that fortnight in which it has the payment of the payment to the legal person supplier of the goods or the carmaker of the service occurred. " (NR)

CHAPTER XII

OF THE INVESTMENT FUNDS LINKED TO PROVIDENT PLANS AND

LIFE INSURANCE WITH COVERAGE BY SURVIVAL

Art. 52. Supplementary welfare open entities and holding companies will be able to, as of 1º January 2006, constitute investment funds, with segregated heritage, linked exclusively to supplementary pension plans or life insurance with coverage clause by survival, structured in the variable contribution modality, by them marketed and administered.

Paragraph single. During the accumulation period, the remuneration for the mathematical provision of benefits to be granted, of the plans and insurance referred to in the caput, will be based on the profitability of the investment portfolio of the respective funds.

Art. 53. The acquisition of plan or insurance framed in the structure provided for in the art. 52 will be paid by underwriting, by the acquirer, of quotes from the linked investment funds.

§ 1º In the case of plan or collective insurance:

I-the procuring legal person will also be cotist of the fund; and

II-the contract or policy will contain clause with the periodicity in which the quotas acquired by the legal person will have their title transferred to the participants or insured.

§ 2º The transfer of title of which treats the inciso II of the § 1º:

I-will confer upon the participants or insured the right to the realisation of rescues and the portability of the accumulated resources corresponding to the quotas;

II-no characterize ransom for incidence purposes of the Income Tax.

§ 3º Regardless of the provisions of § 1º, inciso II, in the case of bankruptcy or extrajudicial settlement of proprietary legal person of quotas:

I-the title of the quotas linked to individualized participants or insured will be transferred to these;

II-the entitlement of the quotas not linked to any individualized participant or insured will be transferred to all participants or insured in proportion to the number of quotas owned by these, including those whose entitlement has been transferred to them on the basis of the inciso I of this paragraph.

Art. 54. The equity of the investment funds of which it treats this Chapter does not communicate with that of the open welfare entities supplementary or of the holding companies constituting them, not responding, not even secondarily, by debt of these.

Single paragraph. In the case of bankruptcy or extrajudicial settlement of the supplementary pension open entity or the insurer society, the fund's equity will not integrate the respective bankrupt or liquidated mass.

Art. 55. In the case of death of the participant or insured of the plans and insurance of which it treats art. 52, its beneficiaries will be able to opt for the ransom of the quotas or for the receipt of benefit of continued character predicted in contract, regardless of the opening of inventory or similar procedure.

Art. 56. Supplemental pension plans and life insurance with coverage clause by survival marketed until December 31, 2005 could be adapted by the open provident entities and insurer companies to the structure provided for in this Chapter.

Art. 57. The willing in the art. 56 does not affect the right of the participants and insured to the portability of the accumulated resources, for other plans and insurance, structured or not in the terms of the art. 52.

Art. 58. The grant of benefit of continued character by plan or structured insurance in the form of the art. 52 shall impose on the transfer of the ownership of the quota of the funds to which the respective plan or insurance is linked to the supplementary provident entity or the holding company responsible for the concession.

Paragraph single. The transfer of quota entitlements from which it treats the caput does not characterize ransom for incidence purposes of the Income Tax.

Art. 59. They apply to the plans and insurance of which it treats art. 52 the art. 11 of Law No. 9,532, of December 10, 1997, and the arts. 1º to 5º and 7º of Law No. 11,053 of December 29, 2004.

Single paragraph. He / she is responsible for withholding and collecting the taxes and incident contributions on the applications effected in the investment funds of which it treats art. 52 a supplementary pension entity or the insurer corporation that marketing or administering the plan or insurance framed in the structure provided for in the aforementioned article, as well as by the fulfilment of the ancillary obligations arising from that responsibility.

Art. 60. It is provided to the supplementary provident plan participant framed in the structure provided for in the art. 52 the offer, as a guarantee of real estate financing, of quotas, of its entitlement, of the funds of which it treats the said article.

§ 1º The provisions of this article apply as well:

I-to the Individual Programmed Retirement Fund cotists; and

II-to the insured life insurance holders with coverage clause by survival framed in the structure provided for in this Chapter.

§ 2º The faculty mentioned in the caput applies only to real estate financing taken in institution financial, which can be linked to or not to the operator's operator of the plan or insurance.

Art. 61. It is vehementing to the open welfare entities supplementary and to the holding companies to impose restrictions on the exercise of the faculty mentioned in the caput, especially when real estate financing is taken up in financial institution no linked.

Art. 62. The guarantee that it treats art. 60 will be the object of specific contractual instrument, firmed by the participant or insured, by the open provident entity or the insurer society and by the financial institution.

Paragraph single. The specific contractual instrument referred to in the caput will be considered, for all legal purposes, as an integral part of the benefits plan or the policy, as the case.

Art. 63. The real estate financing operations that count on the guarantee mentioned in the art. 60 will be hired with life insurance with death coverage and permanent disability.

Art. 64. It is incumbent upon the Central Bank of Brazil, the Securities Commission and the Superintendency of Private Insurance, within the framework of their respective assignments, to have on the supplementary criteria for the regulation of this Chapter.

CHAPTER XIII

OF THE GENERAL PROVISIONS

Art. 65. For the purpose of determining the basis of calculation of the Contribution to PIS/PASEP, COFINS, IRPJ and CSLL, the financial institutions and the remaining institutions authorized to operate by the Central Bank of Brazil shall compute as revenues or expenses incurred in the operations carried out in future settlement markets:

I-a difference, ascertained on the last working day of the month, between changes in the rates, prices or contracted indices (difference of curves), the balance being ascertained on the occasion of the settlement of the contract, the assignment or the closure of the position, in the cases from:

a) swap and term;

b) future and other derivatives with daily financial adjustments or periodicals of positions whose assets underlying the contracts are spot interest rates or fixed income instruments for which the ascertaining of the criterion laid down in this incisity is possible;

II-the result of the algebraic sum of the monthly ascertained adjustments, in the case of the markets referred to in the "b" of the inciso I whose assets underlying the contracts are goods, currencies, variable income assets, term interest rates or any other asset or economic variable for which it is not possible to adopt the criterion set out in the said incisus;

III-the result ascertained in the settlement of the contract, of the assignment or of the closure of the position, in the case of options and too much derivative.

§ 1º The Registry of the Federal Revenue Office shall regulate the provisions of this article, may, including, determine that the value to be recognized monthly, in the hypothesis that it treats the "b" of the inciso I of the caput, is to be calculated:

I-by the fellowship in which the contracts were negotiated or registered;

II-while it is not available the information that it treats the inciso I of the caput, according to the criteria established by the Central Bank of Brazil.

§ 2º When the operation is performed on the counter market, will only be admitted the recognition of expenses or losses if the transaction has been registered in system that has criteria to affirm whether prices, opening or closing of the position, are consistent with market prices.

§ 3º In the case of hedging operations carried out in future settlement markets on overseas exchanges, the recipes or the expenses of which treats the caput will be appropriate by the result:

I- of the algebraic sum of the monthly ascertained adjustments, in the case of contracts subject to adjustment of positions;

II-earned in the settlement of the contract, in the case of the too many derivatives.

§ 4º For the purpose of determining the calculation basis of the Contribution to PIS/PASEP and COFINS, it is vetted the recognition of expenditure or ascertained losses in operations carried out in out-of-pocket markets abroad.

§ 5º The adjustments will be effectuated in the LALUR.

Art. 66. The art. 4º of Law No. 10,931 of August 2, 2004, passes the invigoration with the following essay:

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

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

§ 2º The payment of the tributes and contributions in the form of the willing in the caput will be considered definitive, not generating, in any hypothesis, right to restitution or compensation with whatever is ascertained by the incorporator.

§ 3º The revenues, costs and own expenses of incorporation subject to taxation in the form of this article should not be computed in the apuration of the bases of calculation of the tributes and contributions of which it treats the caput, due by the incorporator by virtue of its other business activities, inclusive unaffected incorporations.

§ 4º For the purposes of the provisions of § 3º, the costs and expenses indirect paid by the incorporator in one month will be recognised as own from the incorporation in the same percentage of share of the own monthly revenue of the incorporation into the total monthly revenue received by the incorporator, thus understood the sum of all operating or non-operational revenue received by the incorporator, inclusive of the advent of the affected incorporation.

§ 5º The option by the special taxation regime obliges the taxpayer to make the pick-up of the tributes, in the form of the caput, from the month of the option. " (NR)

Art. 67. It is subject to income tax exclusively at the source, to the aliquot of fifteen percent, the capital gain ascertained in the divestness effected by physical person to organs, authorities and foundations of the federal public administration, from rural real estate to purposes of agrarian reform.

§ 1º In the alienation hypothesis referred to in the caput, effectuated by legal person, the capital gain is subject to the incidence, at the source, of the IRPJ and CSLL, to the same aliquots and form of incidence provided for in the art. 64 of Law No. 9,430, of 1996.

§ 2º The value withheld in the form of § 1º will be considered anticipation of what is due by the legal person in relation to the same tax and contribution.

§ 3º The physical person and the legal person should demonstrate before the organ, municipality or foundation of the procuring federal public administration, for the effect of the caput and the § 1º, the capital gain arising from the operation, in the disciplined form by the Registry of the Federal Revenue Office.

§ 4º The taxes and the contribution that it treats this article will be withheld, in kind, by the procuring organ or entity, in the act of payment.

§ 5º The retained value, corresponding to each tax or contribution, will be taken to credit of the respective account of the Union's revenue, on the date of retention.

§ 6º The provisions of this article are not applies in the hypotheses of disposals effected by physical persons not subject to the incidence of the income tax, provided for in the tax legislation, and in the disposals effected by optant legal persons by the SIMPLE.

Art. 68. The Minister of State for Finance will be able to create, on the Boards of Contributors of the Ministry of Finance, Special Turks, by a specified time frame, with competence for the trial of the processes it specifies depending on matter and value.

§ 1º The Turks of which treats the caput will be paritary, composed of four limbs, being a councillor Speaker, Representative of the Farm, and three counsellors with pro tempore tenure, assigned among the alternate counsellors.

§ 2º The Minister of State for Finance shall discipline the provisions of this article, including as to the definition of the subject matter and the value to which the caput and the operation are concerned of the Special Turks.

Art. 69. The art. 7º of the Decree-Law No. 2,287 of July 23, 1986, it passes the invigoration with the following essay:

" Art. 7º The Office of the Federal Revenue Office, after recognition of the receivable right at the request of the taxable person and before proceeding to the refund or the ressaration of tributes and contributions by it administered, should check that this is debtor before that Registry and the Attorney General of National Finance-PGFN.

§ 1º Verified the existence of debit in the name of the taxable person, yet parceled under any modality, inscribed or not in Active Debt of the Union, of a tax nature or not, the value of the refund or the resarcement will be used to extinguish it, total or partially, upon offsetting in ophile procedure.

§ 2º After the realization of the procedures referred to in the caput and § 1º, if remanded credit, the restitution and the ressarcement are conditional on the substantiation, by the taxable person legal person, of their tax regularity with respect to the contributions to which the arts relate. 1º to 3º of Law No. 11,098 of January 13, 2005, inclusive of those listed in active debt of the National Institute of Social Insurance-INSS.

§ 3º In the hypothesis of existence of debit on behalf of the taxable person legal person, relating to the contributions of which it treats § 2º, the remaining value of the credit to be returned to it or ressarted, after the realization of the procedures to which the caput relates and § 1º, will be used to extinguish it, either fully or partially.

§ 4º The extinguishing of debit in the form of § § 1º and 3º shall be preceded by subpoena to the taxable person in order to express his / her concordance with respect to the procedure, within fifteen days, being his silence deemed acquiescence.

§ 5º The equivalent value to the amount of the extinct debit in the form foreseen in § 3º will be passed monthly to the INSS.

§ 6º The Ministries of Finance and Social Security will discipline, within their respective competencies, the provisions of in this article. " (NR)

Art. 70. The art. 89 of Law No. 8,212 of July 24, 1991, it passes on the invigorating addition of the following paragraph:

" § 8º Verified the existence of debit in the name of the passive subject, yet parceled under any modality, inscribed or not in active INSS debt, of a tax nature or not, the value of the refund will be used to extinguish it, in whole or in part, upon compensation in the procedure of offending. " (NR)

Art. 71. The art. 8º-A of Law No. 10,336 of December 19, 2001, it passes the invigoration with the following essay:

" Art. 8º-A. The value of CIDE-Combustible paid by the seller of liquid hydrocarbons, not intended for the formulation of gasoline or diesel, could be deducted from the values owed by the procuring legal person of these products, in respect of tributes or contributions, administered by the Registry of the Federal Revenue Officer, on the terms, limits and conditions set out in regulation.

§ 1º The legal person importing the products from which it treats the caput, not intended for the formulation of gasoline or diesel, may deduct from the values of the tributes or contributions administered by the Registry of the Federal Revenue Office, in the terms, limits and conditions set out in regulation, the value of CIDE-Combustible paid on the import.

§ 2º Applies the provisions of this article only to the liquid hydrocarbons used as insumo by the procuring legal person.

§ 3º The tributes or contributions of which will be able to be deducted CIDE-Combustible, in the form of this article, will be related in regulation " (NR)

Art. 72. The art. 18 of Law No. 10,833, 2003, goes on to invigorate with the following essay:

" Art. 18. ..........................................................................

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

§ 4º Will also be required fine insulated fine on the total value of the unduly compensated debit, when the compensation is considered undeclared in the hypotheses of the inciso II of § 12 of the art. 74 of Law No. 9,430 of December 27, 1996, applying for the expected percentage:

I-in the inciso I of the art caput. 44 of Law No. 9,430, of 1996;

II-no inciso II of the art caput. 44 of Law No. 9,430, 1996, in the cases of obvious intent to fraud, defined in the arts. 71, 72 and 73 of Law No. 4,502 of November 30, 1964, regardless of other administrative or criminal penalties bootable.

§ 5º Applies the provisions of § 2º of the art. 44 of Law No. 9,430, 1996, to the hypotheses provided for in Paragraph 4º of this article. " (NR)

CHAPTER XIV

OF THE FINAL PROVISIONS

Art. 73. This Interim Measure shall come into force on the date of its publication, producing effects:

I-from the first day of the subsequent month to its publication in relation to the provisions of the arts. 39 and 40, noted the provisions of paragraph "a" of the inciso II of this article;

II-a departure from the first day of the subsequent fourth month to its publication in relation to the provisions:

a) in the art. 39 of this Provisional Measure, relatively to the inciso I of § 3º and to the inciso II of § 7º of the art. 3º of Law No. 10,485, of 2002;

b) in art. 42, in relation to the changes of the art. 10 of Law No. 11,051, of 2004;

c) in the arts. 43 and 44;

III-as of 1º October 2005, in relation to the provisions of the arts. 33, 69 and 70, observed the provisions of the inciso V;

IV-as of 1º January of 2006, in relation to the provisions of the arts. 17 a to 27 and 47 a to 51;

V-from the editing of act disciplining the matter, in relation to the changes effected in § § 2º and 3º of the art. 7º of the Decree-Law No. 2,287, of 1986, by art. 69 of this Provisional Measure; and

VI-in relation to art. 65, from the editing of act disciplining the matter, observed, as a minimum term:

a) the first day of the fourth month subsequent to that of the publication of this Provisional Measure, for the Contribution to the PIS/PASEP and to COFINS;

b) the first day of the month of January 2006, for the IRPJ and the CSLL.

Art. 74. They are revoked:

I-as of 1º January 2006:

a) the Law No. 8,661, of June 2, 1993;

b) the single paragraph of the art. 17 of Law No. 8,668 of June 25, 1993;

c) o § 4º of the art. 82 and the incisos I and II of the art. 83 of Law No. 8,981 of January 20, 1995;

d) the arts. 39, 40, 42 and 43 of Law No. 10,637 of December 30, 2002;

II-the art. 11 of Law No. 10,931 of August 2, 2004; and

III-the art. 73 of Provisional Measure No. 2.158-35, of August 24, 2001.

Brasilia, June 15, 2005, 184º of Independence and 117º of the Republic.

LUIZ INACIO LULA DA SILVA

Antonio Palocci Filho

Luiz Fernando Furlan