INTERIM MEASURE NO. 2.062-64, OF March 27, 2001

Changes the income tax legislation and gives other providences.

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. 1º A legal person, whose claims with legal person of public law or with company under his or her control, public company, mixed economy company or its subsidiary, arising from construction by employment, of supply of goods or of provision of services, are settled by the Public Power with securities of their issuance, including with Securitization Certificates, issued specifically for that purpose, may compute the share of the profit, corresponding to those claims, that there is differed 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 on the determination of the actual profit of the base period 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 of public law, in the cases of destaycation by them promoted.

Art. 3º It gets reduced to fifteen percent the aliquot of the income tax incident at the source on the sums paid, credited, delivered, maids or remitted to the exterior in the title of remuneration for technical services and technical assistance, and the title of royalties, of any nature, from the beginning of the collection of the contribution instituted by Law No. 10,168 of December 29, 2000.

Art. 4º It is granted incident credit on the Contribution of Intervention in the Economic Domain, Instituted by Law No. 10,168, 2000, applicable to importations paid, credited, delivered, maids or remitted abroad to the title of royalties of any nature.

§ 1º The credit referred to in the caput:

I-will be determined on the basis of the due contribution, incident on payments, credits, deliveries, employment or shipping abroad at the title of royalties of any nature, upon use of the following percentage:

a) one hundred percent, relative to the periods of ascertaining ended from 1º January 2001 to December 31, 2003;

b) seventy percent, relative to the periods of ascertaining ended from 1º January 2004 to 31 of december 2008;

c) thirty percent, regarding the periods of ascertaining closed to from 1º January 2009 to December 31, 2013;

II-will be used, exclusively, for the purposes of deduction of the incident contribution in later operations, concerning royalties.

§ 2º The Gestor Committee defined in the art. 5º of Law No. 10,168, of 2000, will be composed of representatives of the Federal Government, the industrial sector and the academic-scientific segment.

Art. 5º It will not focus the income tax on the source on the income paid or credited to the company domiciled abroad, by the contraption of services of telecommunication, by telecommunication company that centralize, in Brazil, the provision of corporate network services of legal persons.

Paragraph single. For the purposes of this article, it is considered to be corporate network the privative telecommunications network of a company or entity, which interconnects its various points of operations in Brazil and abroad.

Art. 6º The assets of the permanent immobilized asset, except the bare earth, acquired by legal person who explore the rural activity, for use in this activity, could be depreciated in full in the year of the acquisition itself.

Art. 7º Excludes 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 of the physical person, received on the occasion of their disbanding of the entity benefits plan, which corresponds to the installments of contributions effected in the period 1º from January 1989 a to December 31, 1995.

Art. 8º Will be admitted as expenses with instruction, foreseen in the art. 8º, inciso II, paragraph 9,250 (b) of Law No. 9,250 of December 26, 1995, payments are made to crèches.

Art. 9º It is reduced to zero, regarding the generating facts occurring from 1º January 2001, the aliquot of the income tax incident on remittances, to the exterior, intended solely for the payment of expenses related to market research for Brazilian export goods, as well as those arising from participation in exhibitions, fairs and similar events, inclusive rentals and bookings of estandes and exhibition venues, linked to the promotion of Brazilian products, as well as expenditures with advertisement carried out in the framework of these events.

§ 1º The Executive Power shall lay down the conditions and requirements for the application of the provisions of this article.

§ 2º Regarding the period from 1º January 2001 a to December 31, 2003, the annual waiver of revenue arising from the reduction of aliquot referred to in the caput will be ascertained, by the Executive Power, upon projection of the effective resignation verified in the first half.

§ 3º For the purposes of the provisions of art. 14 of the Supplementary Act No. 101 of May 4, 2000, the annual amount of the waiver, ascertained in the form of the preceding paragraph, in the months of September each year, shall be borne to the account of financing sources of the contingency reserve, save if verified excess fundraising, ascertained also in the form of the preceding paragraph, in relation to the forecast of revenues, for the same period, deducted the value of the waiver.

§ 4º The excess fundraising perhaps ascertained in the terms of the preceding paragraph, in fine, will be used for compensation of the amount of the waiver.

§ 5º The aliquot referred to in the caput, in the hypothesis of payments to resident or domiciled in countries that do not tax income or that the tribute to the maximum aliquot of less than twenty percent, referred to in art. 24 of Law No. 9,430 of December 27, 1996 will be twenty-five per cent.

Art. 10. They are convalidated the acts practiced on the basis of the Provisional Measure No. 2.062-63, of February 23, 2001.

Art. 11. This Interim Measure takes effect on the date of its publication.

Brasilia, March 27, 2001; 180º of Independence and 113º of the Republic.

FERNANDO HENRIQUE CARDOSO

Amaury Guilherme Bier