LEI N. 10,637? FROM December 30, 2002

Dispose about the non-cumulativity in the collection of the contribution to the Social Integration Programs (PIS) and Public Server Heritage Training (Pasep), in the cases it specifies; on the payment and the parceling of federal tax debts, the compensation of tax credits, the declaration of inaptitude of enrollment of legal persons, the customs legislation, and gives other arrangements.

THE PRESIDENT OF THE REPUBLIC

I do know that the Congress National decrees and I sanction the following Law:

CHAPTER I

OF THE NON-CUMULATIVE COLLECTION OF THE PIS AND THE PASEP

Art. 1º The contribution to the PIS/Pasep has as fact generator the monthly billing, thus understood the total revenues earned by the legal person, regardless of their denomination or accounting classification

§ 1º For the purpose of the provisions of this article, the total revenue comprises the revenue gross of the sale of goods and services in the operations on own account or alheia and all the other revenues earned by the legal person.

§ 2º The basis of calculating the contribution to the PIS/Pasep is the value of the billing, as defined in the caput.

§ 3º Do not integrate the calculation basis to which this article refers, the recipes:

I? arising from outputs exempted from the contribution or subject to zero aliquot;

II? (VETADO)

III? earned by the legal person reseller, in the resale of goods in respect of which the contribution is required from the seller company, in the condition of tax substitutes;

IV? of sale of the products of which they treat Laws No. 9,990, of July 21, 2000, 10,147, December 21, 2000, and No 10,485, of July 3, 2002, or any others subjected to the monophasic incidence of the contribution;

V? referring to:

a) cancelled sales and unconditional discounts granted;

b) reversal of provisions and recoveries of lowered credits as loss, which do not represent ingress of new revenue, the result positive from the valuation of investments by net worth value and the profits and dividends derived from investments assessed by the cost of acquisition, which have been computed as revenue.

Art. 2º For determination of the value of the contribution to the PIS/Pasep will apply, on the basis of established calculation as per the provisions of the art. 1º, the aliquot of 1.65% (one integer and sixty-five hundred percent).

Art. 3º Of the value ascertained in the form of the art. 2º the legal person will be able to discount credits calculated in relation to:

I? goods purchased for resale, except in respect of the goods and the products referred to in the incisties III and IV of § 3º of the art. 1º;

II? goods and services used as an insume in the manufacture of products intended for sale or the provision of services, including fuels and lubricants;

III? (VETADO)

IV? rentals of buildings, machinery and equipment, paid to the legal person, used in the activities of the company;

V? financial expenses arising from loans and financing of legal person, except from optant by the Integrated Tax Payment System and Contributions of Microenterprises and Small Business Companies (Simple);

VI? machines and equipment purchased for use in the manufacture of products intended for sale, as well as other assets embedded in the immobilized asset;

VII? buildings and benefactions in third-party real estate, when the cost, inclusive of labor, has been supported by the locatary;

VIII? goods received in return, whose sales revenue has integrated invoicing of the previous month or month, and taxed as per the provisions of this Act.

§ 1º The credit will be determined upon application of the predicted aliquot in the art. 2º about the value:

I? of the items mentioned in the incisos I and II of the caput, acquired in the month;

II? of the items mentioned in the incisos III to V of the caput, incurred in the month;

III? of the depreciation and amortization charges of the goods mentioned in the incisos VI and VII of the caput, incurred in the month;

IV? of the goods mentioned in the inciso VIII of the caput, returned in the month.

§ 2º shall not give a credit claim the value of labour pays the physical person.

§ 3º The right to the credito applies, exclusively, in relation:

I? to the goods and services purchased from legal person domiciled in the Country;

II? the costs and expenses incurred, paid or credited to the legal person domiciled in the Country;

III? to the purchased goods and services and to the costs and expenses incurred from the month in which the application of the provisions of this Act is commented.

§ 4º The untapped credit in any given month could be in the subsequent months.

§ 5º (VETADO)

§ 6º (VETADO)

§ 7º In the hypothesis of the legal person subjecting itself to the non-cumulative incidence of the contribution to the PIS/Pasep, in relation only to part of its revenues, the credit shall be ascertained, exclusively, in relation to the costs, expenses and charges linked to these revenues.

§ 8º Observed the standards to be edited by the Registry of the Federal Revenue, in the case of costs, expenses and charges linked to the revenue referred to in § 7º and those submitted to the scheme of cumulative incidence of this contribution, the credit shall be determined, at the discretion of the legal person, by the method of:

I? direct appropriation, including in relation to costs, by means of integrated and coordinated cost accounting system with the deed; or

II? proportional prorogation, applied to costs, expenses and common charges the existing percentage ratio between gross income subject to non-cumulative incidence and total gross revenue, earned in each month.

§ 9º The method elected by the legal person will be applied consistently for the whole year-calendar, observed the standards to be edited by the Federal Revenue Secretary.

Art. 4º The taxpayer of the contribution to the PIS/Pasep is the person legal to earn the revenue referred to in art. 1º.

Art. 5º The contribution to PIS/Pasep will not focus on the revenue arising from the operations from:

I? export of goods to the outside;

II? provision of services for physical or legal person domiciled abroad, with payment in convertible currency;

III? sales the exporting commercial company with the specific end of export.

§ 1º In the hypothesis of this article, the person legal seller will be able to use the credit ascertained in the form of the art. 3º for the purposes of:

I? deduction of the value of the contribution to be collected, arising from the remaining transactions in the internal market;

II? compensation with own debits, overdue or vincende, relating to tributes and contributions administered by the Registry of the Federal Revenue Officer, observed specific legislation applicable to matter.

§ 2º The legal person who, until the end of each quarter of the calendar year, is unable to use credit for any of the foreseen forms in § 1º, you will be able to apply for your cash-in-cash, observed the specific legislation applicable to the matter.

Art. 6º The right to the ressaration of the contribution to the PIS/Pasep of which they treat Laws No 9,363, of December 13, 1996, and No 10,276, of September 10, 2001, does not apply to the person legal submitted to the apuration of the value due in the form of the arts. 2º and 3º of this Act.

Single paragraph. Regarding the legal person referred to in the caput:

I? the percent referred to in § 1º of the art. 2º of Law No. 9,363 of December 13, 1996, will be 4.04% (four integers and four hundreths per cent);

II? the index of the factor determination formula (F), constant of the Single Annex of Law No. 10,276, of September 10, 2001, will be 0.03 (three hundrst hundrths).

Art. 7º The exporting commercial company that there is procured goods from another legal person, with the specified end of export to the outside, which, within 180 (one hundred and eighty) days, counted from the date of issuance of the tax bill by the seller, do not substantiate your shipment to the outside, will be subject to payment of all taxes and contributions that are no longer paid by the seller company, plus interest payment and fine, of mora or of trade, calculated in the form of the legislation governing the collection of the unpaid tribute.

§ 1º Para. effect of the provisions of this article, the time limit for payment is considered to be due on the date the salesperson company should do so, should the sale be effected to the domestic market.

§ 2º In the payment of the said tributes, the exporting commercial enterprise will not be able to deduct, from the amount due, any value to title of Income Tax on Industrial Products (IPI) or contribution to PIS/Pasep, arising from the acquisition of the goods and services object of incidence.

§ 3º The company should pay, too, the taxes and contributions due in sales to the domestic market, in case, by any way, have disposed of or used the goods.

Art. 8º Remain subject to the standards of the legislation of the contribution for the PIS/Pasep, previously beholdant to this Law, not by applying to the provisions of the arts. 1º to 6º:

I? the legal persons referred to in § § 6º, 8º and 9º of the art. 3º of Law No. 9,718 of November 27, 1998 (paragraphs introduced by Provisional Measure No. 2.158-35 of August 24, 2001), and Law No. 7,102, of June 20, 1983;

II? the legal persons taxed by the income tax on the basis of the presumed or arbitrated profit;

III? the legal persons opting for the Simple;

IV? the legal legal persons imposed on taxes;

V? public bodies, federal, state and municipal public authorities and foundations, and the foundations whose creation has been authorized by law, referred to in art. 61 of the Act of the Transitional Constitutional Provisions of the Constitution of 1988;

VI? (VETADO)

VII? the revenue arising from the operations:

a) referred to in the inciso IV of § 3º of the art. 1º;

b) subject to the tax replacement of the contribution to the PIS/Pasep;

c) referred to in the art. 5º of Law No. 9,716 of November 26, 1998;

VIII? revenue arising from the provision of telecommunications services;

IX? (VETADO)

Art. 9º (VETADO)

Art. 10. The contribution of which treats art. 1º should be paid up to the last working day of the first fortnight of the subsequent month to the occurrence of the generator fact.

Art. 11. The contributing legal person of PIS/Pasep, submitted to the ascertaining of the value due in the form of the art. 3º, shall be entitled to discount corresponding to the opening stock of the goods of which they treat the incisos I and II of that article, acquired from legal person domiciled in the Country, existing on 1º December 2002.

§ 1º The presumed credit mandant will be equal to the result of the application of the 0.65% percent (sixty-five hundrth percent) application on the value of the stock.

§ 2º The presumed credit calculated under § 1º will be used in 12 (twelve) plots monthly, equal and successive, the part of the date to which the caput of this article is concerned.

§ 3º The legal person that, taxed on the basis of presumed profit, move to adopt the taxation regime on the basis of actual profit, will, on the assumption of, on the basis of that option, subject yourself to the non-cumulative incidence of the contribution to PIS/Pasep, right to discount corresponding to the opening stock of the goods and the taking advantage of the credit presumed in the form provided in this article.

Art. 12. By December 31, 2003, the Executive Power will submit to the National Congress Bill by making non-cumulative the collection of the Contribution to Social Security Financing (Cofins).

Paragraph single. The project will also contain the modification, if necessary, of the aliquot of the contribution to the PIS/Pasep, with the purpose of maintaining constant, in relation to previous periods, the share of the fundraiser affected by the changes introduced by this Law.

CHAPTER II

OF THE OTHER PROVISIONS ON TAX AND CUSTOMS LEGISLATION

Art. 13. They will be able to be paid until the last working day of January 2003, in a single instalment, the debits referred to in the art. 11 of the Provisional Measure No. 2.158-35, of August 24, 2001, bound or not to any legal action, relating to generative facts occurring until April 30, 2002.

§ 1º For the purposes of this article, the legal person should substantiate the express and irrevocable dismissal of all the lawsuits that bear the object of the tributes to be paid and waive the any claim of law on which the said actions are founded.

§ 2º In the hypothesis that it treats this article, shall be waived the interest of late payment due until January 1999, such charge being required, in the form of § 4º of the art. 17 of Law No. 9,779 of January 19, 1999, plus the Provisional Measure No. 2.158-35, of August 24, 2001, as of the month:

I? of February of the said year, in the case of generative facts occurring until January 1999;

II? following that of the occurrence of the generator fact, in the remaining cases.

§ 3º In the hypothesis of this article, the fine, of mora or of craft, incident on the debit constituted or not, will be reduced in the percent fixed in the art's caput . 6º of Law No. 8,218 of August 29, 1991.

§ 4º For the effect of the provisions of the caput, if the debits are arising from the launch of trade and meet with suspended exigency by force of the inciso III of the art. 151 of Law No. 5,172 of October 25, 1966, the taxable person shall expressly and in an irrevocable manner of the impurition or the interposed appeal.

Art. 14. The debits that it treats art. 13, relating to generative facts linked to lawsuits proposed by the taxable person against demanding tax or contribution instituted after 1º January 1999 or against majoration, after that date, of tax or contribution previously instituted, will be able to be paid in single instalment until the last working day of January 2003 with the dispensation of moratorium and punitive fines.

§ 1º For the purpose of this article, the taxpayer or the responsible person should substantiate the express and irrevocable dismissal of all the court actions that bear the object of the tributes to be paid in the form of the caput, and waive any claim of law on which the said actions are founded.

§ 2º The benefit of which it treats this article can only be enjoyed should the taxpayer or the responsible pay in full, within the same period set out in the caput, the debit referred to therein, concerning gerrymander facts accordion May 2002 up to the month preceding that of the payment.

§ 3º In the hypothesis of this article, the interest of late payment is determined by the Long-Term Rate Interest Rate (TJLP) monthly variation.

Art. 15. Regarding the tributes and contributions administered by the Registry of the Federal Revenue Officer, the taxpayer or the responsible who, as of May 15, 2002, has been paying debit, in accordance with standard of character exonerated, and diverge in relation to the debit value constituted of trade, may challenge, on the basis of the standards set out in Decree No. 70,235 of March 6, 1972, the parcel not recognised as due, provided that the imputation:

I? is presented together with the payment of the recognized value as due;

II? verse, exclusively, on the divergence of value, vehementing the inclusion of any other subjects, in particular those of law in which they have founded the respective legal actions or impugments and appeals previously filed against the same launch;

III? is preceded by the deposit of the parcel not recognized as due, determined in accordance with the provisions of Law No. 9,703, of November 17, 1998.

§ 1º Of the decision handed down in relation to the challenge of which it treats this article shall be appean in the suits of Decree No. 70,235 of March 6, 1972.

§ 2º The conclusion of the administrative-fiscal process, by definitive decision in its sphere or dismissal of the passive subject, will imply the immediate conversion into income from the deposit effected, in the part favorable to the National Farm, turning into definitive payment.

§ 3º The parcel deposited pursuant to the inciso III of the caput which comes to be deemed undue by virtue of the decision referred to in § 2º shall subject to the provisions of Law No. 9,703, 17 of november 1998.

§ 4º The provisions of this article also apply to the majorness or aggravation of a fine of workshop, in the art hypothesis. 13.

Art. 16. It applies to the provisions of the arts. 13 and 14 to the contributions raised by the National Institute of Social Insurance (INSS), observed edited regulation par that organ, in particular as to the procedures in the framework of its administrative litigation.

Art. 17. The option by the payment modality of debit predicted in the art's caput . 5º of the Provisional Measure No. 2,222 of September 4, 2001, may be exercised until the last working day of the month of January 2003, provided that the payment is made in single parcel by that date.

Paragraph single. The debits to be paid out of the provisions of the caput will be increased interest equivalent to the rate of the Special Settlement and Custody System (Selic) for federal securities, accumulated monthly, calculated as of the month of January from 2002 to the month prior to the payment, and added from 1% (one percent) relatively to the month in which payment is being made.

Art. 18. The debits relating to the contribution to the Public Server Heritage Training Program (Pasep) of the States, the Federal District and the Municipalities, as well as their public authorities and foundations, without suspended demanding, correspondents the operative fact chained up to April 30, 2002, may be paid by special parceling arrangements, by choice of the legal person of the right internal public deveer.

Paragraph single. The option referred to in the caput is to be formalized until the last working day of the month of September 2002, under the terms and conditions set by the Office of the Federal Revenue Office.

Art. 19. The special parceling regime referred to in the art. 18 implies the consolidation of the debits on the date of the action and will cover the entirety of the existing debits in the name of the optant, constituted or not, inclusive of the default interest rates up to the date of option.

Paragraph single. The consolidated debit in the form of this article:

I? subject to, from the date of consolidation, interest equivalent to the Selic rate for federal securities, accumulated monthly, calculated from the date of deferral of the application up to the month before that of the payment, and added 1% (one per one percent) regarding the month in which payment is being made;

II? will be paid monthly, up to the last working day of the first fortnight of each month, amounting to 5% (five percent) of the value due in the same month by the aptant, relative to Pasep corresponding to the generator fact occurred in the month immediately previous, up to the total settlement of the debit;

III? the last instalment will be paid for the residual value of the debit, when lower than the one referred to in the inciso II.

Art. 20. The option by the special parceling regime referred to in the art. 18 subject to legal person:

I? to the irrevocable and irretreatable confession of the debits referred to in art. 19;

II? the regular payment of the consolidated debit plots, as well as the due values relating to the Pasep arising from generative facts occurring later on April 30, 2002.

Paragraph single. The option by the special scheme excludes any other form of parceling of debits concerning the Pasep.

Art. 21. The legal person opting for the special parceling regime referred to in the art. 18 will be of it excluded in the following hypotheses:

I? failure to comply with the requirement set out in the inciso I of the art. 20;

II? default, for 2 (two) consecutive months or 6 (six) alternates, relatively to the Pasep, inclusive of generative fact-facts occurring later on April 30, 2002.

§ 1º The exclusion of the legal person from the special scheme will entail immediate exigency of the confessed credit totality and not yet paid.

§ 2º The exclusion will be formalized by means of act of the Registry of the Federal Revenue Office and will produce effects to from the subsequent month to the one in which the opting legal person is scientified.

Art. 22. (VETADO)

Art. 23. The option by the alternative parceling to Refis that it treats the art. 12 of the Law No. 9,964 of April 10, 2000, regularly effected, may be converted into an option by the Refis, and vice versa, in the error hypothesis of fact made on the occasion of the first payment effected, observed the standards set by the Committee Manager of the said Programme.

§ 1º The change of option referred to in this article should be requested by the last working day of the month of January 2003.

§ 2º The legal person excluded from the alternative parceling to Refis in repayment ratio ratio in lower value than fixed in the art. 12, § 1º, of Law No. 9,964, of April 10, 2000, plus interest corresponding to the monthly variance of the Long-Term Interest Rate (TJLP), may have its option reinstated, observed the provisions of the caput.

§ 3º The conversion of the option under this article does not imply restitution or compensation of already paid values.

Art. 24. The caput of the art. 10 of Law No. 10,522 of July 19, 2002, passes the vigour with the following essay:

" Art. 10. The debits of any nature towards the National Farm will be able to be parceled into up to sixty monthly instalments, the sole discretion of the making authority, in the form and conditions laid down in this Law.

.........................................................................................................................................................? (NR)

Art. 25. Regarding the tributes and contributions administered by the Office of the Federal Revenue Office, on the assumption of, on the date of the payment carried out of compliance with exonerative character standard, the taxpayer or the responsible person is under the monitoring in respect of the matter to be the subject of such payment, parcel not recognised as due may be charged within the period fixed in the constant subpoena of the infringement self or the notification of release, under the conditions laid down by the referred to as a standard, including in relation to the deposit of the respective parcel within the time frame specified for the payment of the recognized value as due.

Art. 26. You will be able to opt for the Integrated Tax Payment System and Contributions of Microenterprises and Small Business Companies (Simple), under the conditions laid down by Law No. 9,317 of December 5, 1996, the legal persons who delve into exclusively to the activities of:

I? travel agency and tourism;

II? (VETADO)

III? (VETADO)

IV? (VETADO)

V? (VETADO)

VI? (VETADO)

VII? (VETADO)

VIII? (VETADO)

IX? (VETADO)

Art. 27. The foreign trade operation carried out upon use of third party resources is presumed to be on account and order of this, for the purposes of application of the provisions of the arts. 77 a 81 of the Provisional Measure No. 2.158-35, of August 24, 2001.

Art. 28. International transport companies operating on a regular basis, by air or sea, are expected to provide information about crew and passengers, in the form and time set by the Federal Revenue Office.

Paragraph single. The unfulfillment of the provisions of this article will take the application of a fine in the value of:

I? R$ 5,000.00 (five thousand reais) per vehicle whose information is not presaged; or

II? R$ 200.00 (two-hundred reais) per omitted information, limited to the value of R$ 5,000.00 (five thousand reais) per vehicle.

Art. 29. The raw materials, intermediate products and packaging materials, intended for establishment that deters, preponderantly, to the elaboration of products classified in Chapters 2, 3, 4, 7, 8, 9, 10, 12, 15, 16, 17, 18, 19, 20, 20, 23, 23, 23, 23, 23 (except codes 2309.10.00 and 2309.90.30 and Ex-01 in code 2309.90.90), 28, 29, 30, 31 and 64, in code 2209.00.00, and in the positions 21.01 a to 05/21/2000, of the Imposed Incident Table of Industrial Products? Tipi, inclusive of those to which it corresponds to NT notation (not taxed), will come out of the industrial establishment with suspension of the said tax.

§ 1º The provisions of this article also apply to the outputs of raw materials, intermediate products and packaging materials, when acquired by.

I? industrial establishments manufacturers, preponderantly, of:

a) components, chassis, bodywork, parts and parts of the products referred to in art. 1º of Law No. 10,485 of July 3, 2002;

b) parts and parts intended for the industrial establishment of product rated in Chapter 88 of the Tipi;

II? preponderantly exporting legal persons.

§ 2º The provisions of the caput and the inciso I of § 1º apply to the industrial establishment whose gross revenue arising from the products listed there, in the calendar year immediately preceding that of the acquisition, there was more than 60% (sixty per cent) of its total gross revenue in the same period.

§ 3º For the purposes of the incept II of § 1, it considers itself to be preponderantly exporting the one whose gross revenue arising from export to overseas, in the calendar year immediately preceding that of the acquisition, there have been more than 80% (eighty percent) of its total gross revenue in the same period.

§ 4º The raw materials, intermediate products, and packaging materials, imported directly by establishment of which treat the caput and § 1º will be disembarked with suspension from the IPI.

§ 5º The suspension of the tax does not preclude the maintenance and the use of IPI credits by the respective industrial establishment, manufacturer of the said raw materials, intermediate products and packaging materials.

§ 6º In the tax notes relating to the outputs referred to in § 5º, it should appear the expression "Output with suspension of IPI", with the specification of the corresponding legal device, vetted the registration of the tax in the said notes.

§ 7º For the purposes of the willing in this article, procuring companies should:

I? meet the terms and conditions set by the Federal Revenue Office;

II? declare to the seller, in an express manner and under the penalties of the law, that it meets all the requirements set forth.

Art. 30. The lack of provision of the information referred to in art. 5º of the Supplementary Act No. 105, of January 10, 2001, or its presentation inaccurately or incompletely, subject to legal person to the following penalties:

I? R$ 50.00 (real fifty) per group of five inaccurate, incomplete or omitted information;

II? R$ 5,000.00 (five thousand reais) per month-calendar or fraction, regardless of the sanction provided for in the inciso l, in the delay hypothesis in the delivery of the declaration that comes to be instituted for the purpose of submitting the information.

§ 1º The provisions of the inciso II of the caput apply also to the declaration that does not meet the specifications that are established by the Federal Revenue Office, including when required in digital medium.

§ 2º The fines of which it treats this article will be:

I? ascertained considering the period between the day after the end of the deadline set for the delivery of the dedication up to the date of the effective delivery;

II? majored in 100% (one hundred percent), in the hypothesis of self-infringing lavrature.

§ 3º In the lavrature hypothesis of self-infringement, in case the legal person does not present the statement, will be lavished supplementary infraction autos until their effective delivery.

Art. 31. The lack of presentation of the elements referred to in art. 6º of the Supplementary Act No. 105 of January 10, 2001, or its presentation inaccurately or incomplete, subject to legal person to the fine equivalent to 2% (two percent) of the value of the object's object operations, ascertained by means of tax procedure with the legal person itself or the holder of the deposit account or financial application, as well as to third parties, by month-calendar or delay fraction limited to 10% (ten per cent), observed the minimum value of R$ 50,000.00 (fifty thousand reais).

Single paragraph. To the fine that it deals with this article applies to the provisions of § § 2º and 3º of the art. 30.

Art. 32. The closed supplementary provident entities will be able to exclude from the base of calculation of the contribution to the PIS/Pasep and the Cofins, in addition to the values already provided for in the current legislation, those regarding:

I? income relating to rental revenues, intended for the payment of retirement benefits, pension, peculium and bailouts;

II? revenue arising from the sale of immovable property, intended for the payment of retirement benefits, pension, peculium and bailouts;

III? positive result earned in the reassessment of the real estate investment portfolio referred to in the incisos I and II.

Paragraph single. The entities of which it treats the caput will be able to pay in single parcel, until the last working day of the month of November 2002, with a waiver of interest and fine, the debits relating to the contribution to the PIS/Pasep and the Cofins, constituted or not, enrolled or not in Active Divida, helped or to help, referring to generative facts occurring until July 31, 2002 and arising from:

I? income relating to rental revenues, intended for the payment of retirement benefits, pension, peculium and bailouts;

II? revenue arising from the sale of immovable property, intended for the payment of retirement benefits, pension, peculium and bailouts;

III? positive result earned in the reassessment of the real estate investment portfolio referred to in the incisos I and II.

Art. 33. (VETADO)

Art. 34. The condition and the sealing established, respectively, in the art. 13, § 2º, III, b, of Law No. 9,249, of December 26, 1995, and in art. 12, § 2º, a, of Law No. 9,532 of December 10, 1997, do not achieve the assumption of remuneration of leader, due to employment linkage, by the Organizations of the Civil Society of Public Interest (Oscip), qualified by the standards set out in Law No. 9,790 of March 23, 1999 and by the Racial Organizations (OS), qualified depending on the devices of Law No. 9,637, of May 15, 1998.

Paragraph single. The provisions of this article apply only to the non-superior remuneration, at its gross value, to the limit set for the remuneration of servers of the Federal Executive Power.

Art. 35. The revenue arising from the valuation of securities and securities, financial instruments, derivatives and items object of hedge, registered by the financial institutions and too many entities authorized to function by the Central Bank of the Brazil, institutions authorised to operate by the Superintendence of Private Insurance-Susep and companies authorized to operate in insurance or reinsurance in the wake of the market price value in what exceeds the yield produced until the said date will only be computed in the calculation basis of the Income Tax of Legal People, of the Social Contribution on the Net Profit, of the Contribution to the Social Security Financing (Cofins) and the contribution to the PIS/Pasep when da disposal of the respective assets.

§ 1º In the devaluation hypothesis arising from the assessment mentioned in the caput, the recognition of the loss for the effect of the Income Tax of Legal People and the Social Contribution on the Net Profit will be computed also when of the divestment.

§ 2º For the purposes of the provisions of this article, any form of transmission of the property, as well as settlement, shall be deemed to be disposed of, the rescue and the assignment of the said securities and securities, derivative financial instruments and items object of hedging.

§ 3º The accounting records of which it treats this article will be effected in consideration of the specific adjustments account for that purpose, in the form to be established by the Registry of the Federal Revenue Office

§ 4º Stay convalidated the procedures previously carried out for the duration of this Act, in the course of the year-calendar of 2002, provided that I have observed the provisions of this article.

Art. 36. It will not be computed, in the determination of the actual profit and calculation basis of the Social Contribution on the Net Profit of the legal person, the share corresponding to the difference between the capital integralization value, resulting from the incorporation to the other legal person's estate that undersubscriptions and integrates, and the value of that registered society-registered stake in the Accounting deed of this same legal person.

§ 1º The value of the established difference will be controlled in Part B of the Real Profit Spurt Book (Lalur) and should only be computed in the determination of the actual profit and calculation basis of the Social Contribution sabre the Net Profit:

I? in the disposal, liquidation or low, to any title, of the subscribed participation, proportionally to the amount realized;

II? proportionally to the value realized, in the period of ascertaining in which the legal person for whom the society-wide shareholding has been transferred realize the value of such participation, by disposal, liquidation, capital conference on another person legal, or low to any title.

§ 2º Will not be considered as realization of the eventual transfer of the participation societary incorporated into the patrimony of another legal person, in the result of merger, spinning or incorporation, observed the conditions of § 1º.

Art. 37. Regarding the generative facts occurring from 1º January 2003, the aliquot of the Social Contribution on Net Profit (CSLL), instituted by Law No. 7,689 of December 15, 1988, will be 9% (nine percent).

Art. 38. It is hereby established, in relation to the tributes and contributions administered by the Office of the Federal Revenue Officer, tax addedness bonus, applicable to legal persons submitted to the taxation regime on the basis of actual or presumed profit.

§ 1º The bonus referred to in the caput:

I? corresponds to 1% (one per cent) of the CSLL calculation basis determined under the standards set for legal persons subjected to the scheme of ascertaining on the basis of the assumed profit;

II? will be calculated in relation to the calculation basis referred to in the inciso I, relative to the calendar year in which it is allowed to take its advantage.

§ 2º In the quarterly ascertaining period hypothesis, the bonus will be calculated in relation to the 4 (four) quarters of the calendar year and could be deducted from the CSLL due corresponding to the last quarter.

§ 3º Will not make jus to the bonus the legal person who, in the last 5 (five) years-calendar, enquels in any of the following hypotheses, in relation to tributes and contributions administered by the Office of the Federal Revenue Office:

I? launch of trade;

II? débitos with suspended exigency;

III? enrollment in active debt;

IV? pickups or payments in arrears;

V? lack or delay in the fulfillment of an ancillary obligation.

§ 4º In the definitive decision hypothesis, in the sphere administrative or judicial, which implies full disoneration of the legal person, the restrictions referred to in the incisies I and II of § 3º shall be disregarded from the origin.

§ 5º The period of 5 (five) years-calendar will be computed per full year, including the one in respect of which to give the harnessing of the bonus.

§ 6º The deduction of the bonus will give in respect to CSLL due in the calendar year.

§ 7º The share of the bonus that cannot be harnessed in a given period may sway it in later periods, vehement of the ressaration or the compensation distinct from that referred to in this article.

§ 8º The improper use of the bonus set up by this article implies the imposition of the fine of which it treats the inciso II of the art. 44 of Law No. 9,430 of December 27, 1996, without prejudice to the provisions of your § 2º.

§ 9º The bonus will be registered in accounting for the beneficiary legal person:

I? in the acquisition of the right, the Current Asset account debit and the accrued Profit or Damage Credit;

II? in the use, the debit of the provision for payment of the CSLL and the credit of the Current Asset account referred to in the inciso I.

§ 10. The Registry of the Federal Revenue Office shall establish the necessary standards for the application of this article.

Art. 39. Legal persons will be able to deduct from the net profit, in the determination of the actual profit and calculation basis of CSLL, the operating expenses relating to the expenditures carried out with technological research and technological innovation development of products.

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

§ 2º The figures for the expenditures incurred in fixed installations and in the purchase of apparatus, machinery and equipment, intended for use in research projects and technological developments, metrology, technical standardization and conformity assessment, applicable to products, processes, systems and personnel, authorization procedures of registrations, licences, homologation and its correlates forms, as well as relative to intellectual property protection procedures, may be depreciated in the form of the current legislation, and the undepreciated balance may be excluded in the determination of the actual profit, in the period of ascertaining where completed its use.

§ 3º The value of the excluded balance in the form of § 2º is to be controlled in Part B of the Book of Apuration donates Actual Profit (Lalur) and will be added, in the determination of the actual profit, in each period of later ascertaining, by the value of the normal depreciation that comes to be accounted for as operating expense.

§ 4º For purposes of the deduction, expenditures should be controlled accounting in specific, individualized accounts by project accounts carried out.

§ 5º In the 2003 financial year, the provisions of the caput of this article also apply to balances, in 31 of December 2002, from the accounts of the Wounded Asset, regarding expenditures carried out with technological research and technological innovation development.

Art. 40. Without prejudice to the provisions of art. 39, the legal person may, still, be able to exclude, in the determination of actual profit, value equivalent to 100% (one hundred percent) of the total expenditures of each project that comes into being turned into a patent filing, duly registered at the National Institute of Industrial Property (INPI), e. cumulatively, in at least one of the following examination entities recognized by the Treaty of Cooperation on Patents (Patent Cooperation Treaty -PCT):

I? European Patent Office (European Patent Office);

II? Japanese Patent Department (Japan Patent Office); or

III? North American Department of Patents and Marks (United States Patent and Trade Mark Office).

§ 1º The value that will serve as a basis for exclusion should be controlled in Part B of the Lalur, per project, until the requirements laid down in this Act are met, when they may be excluded in the determination of actual profit in the form provided in this article.

§ 2º The values registered in the form of § 1º should, at any time, be evidenced by documentation idônea, which should be at the disposal of the audit of the Registry of the Federal Revenue Office.

Art. 41. (VETADO)

Art. 42. To convalidate the appropriateness of the expenditures effected, with views to the enjoyment of the tax benefit provided for in the art. 40, the technological innovation development projects are to be submitted to the analysis and approval of the Ministry of Science and Technology, to the terms laid down in § 5º of the art. 4º of Law No. 8,661 of June 2, 1993, observed rules set out in regulation.

Single paragraph. For enjoyment of the tax benefit provided for in the arts. 39, 40 and 41, the legal person shall prove, where appropriate, the pick-up of the intervention contribution in the economic field instituted by law No. 10,168 of December 29, 2000 and amended by Law No. 10,332 of December 19 of 2001.

Art. 43. The expenditures to which the arts refer. 39 and 40 will only be able to be deducted if paid to physical or legal persons resident and domiciled in the Country, except payments for obtaining and maintaining patents and trademarks abroad.

Art. 44. (VETADO)

Art. 45. In cases of ascertaining excess cost of purchase of goods, rights and services, imported from linked companies and which are deemed undetectable in determining the actual profit and calculation basis of the social contribution on profit liquid, ascertained in the form of the art. 18 of Law No. 9,430 of December 27, 1996, the legal person shall adjust the excess cost, determined by one of the methods provided for in the legislation, at the close of the period of ascertaining, accounting, by means of launching the debit account of accumulated results and the credit of:

I? account of the asset where it was accounted for the acquisition of the goods, rights or services and that they remain there registered at the end of the period of ascertaining; or

II? own cost or expense account of the period of ascertaining, which records the value of the goods, rights or services, in the case that these assets have already been downloaded from the asset account that has registered their acquisition.

§ 1º In the case of classifiable assets in the permanent asset and which have generated depreciation, amortization or exhaustion quotas, in the year-calendar of the import, the value of the excess import purchase price is to be credited to the asset account in whose shares have been debited, in return to the account of accumulated results referred to in the caput.

§ 2º Case the legal person chooses to add, in the determination of the actual profit and the basis of calculating the social contribution on net profit, the value of excess ascertained in each period of ascertaining solely on the occasion of the realization by disposal or low to any title of the good, right or service acquired, the total value of the excess ascertained in the period of acquisition is to be excluded from net worth, for purposes of determining the basis of calculation of interest on equity capital, of which it treats art. 9º of Law No. 9,249 of December 26, 1995, amended by Law No. 9,430 of December 27, 1996.

§ 3º In hypothesis of § 2º, the legal person shall record the total value of the excess purchase price in own sub-account that records the value of the good, service or right acquired abroad.

Art. 46. The art. 13, caput, and the art. 14, I, of Law No. 9,718, of November 27, 1998, go on to invigorate with the following essay:

?Art. 13. The legal person whose total gross revenue, in the previous year-calendar year, was equal to or less than R$ 48,000,000.00 (forty-eight million reais), or at R$ 4,000,000.00 (four million reais) multiplied by the number of months of activity of the previous calendar year, when less than 12 (twelve) months, may opt for the taxation regime on the basis of the presumed profit.

..........................................................................................................................................................? (NR)

" Art. 14 ........................................................................................................................................

I? whose total revenue, in the previous year-calendar is higher than the limit of R$ 48,000,000.00 (forty-eight million reais), or proportional to the number of months of the period, when less than 12 (twelve) months;

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

Art. 47. The legal person member of the Electrical Energy Tactician Market (MAE), established by Law No. 10,433 of April 24, 2002, will be able to opt for special taxation arrangements, regarding the contribution to the Social Integration Programme and of Public Server Heritage Training (PIS/Pasep) and the Contribution to Social Security Financing (Cofins).

§ 1º The option by the special regime referred to in the caput:

I? will be exercised by simple communianship, under the terms and conditions set by the Office of the Federal Revenue Office;

II? will produce effects in relation to the generating facts occurring from the subsequent month to that of the exercise of the option.

§ 2º For the purposes of the special scheme referred to in the caput, it is considered gross revenue earned in the operations of purchasing and selling electric energy carried out in the form of the regulation of which it treats art. 14 of Law No. 9,648 of May 27, 1998, with the wording given by Law No. 10,433 of April 24, 2002, for the purpose of incidence of the contribution to PIS/Pasep and Cofins, the positive results ascertained monthly by the legal person opting.

§ 3º In the determination of the basis of calculation of the contribution to PIS/Pasep and Cofins, the legal person opting will be able to deduct the due values, corresponding to adjustments of staged accounts of purchase and sale operations of electric power, carried out under the MAE, when arising from:

I? decision delivered in the process of conflict solution, within the framework of the MAE, the National Electrical Energy Agency (Aneel) or in arbitration proceedings, in the manner provided for in § 3º of the art. 2º of Law No. 10,433 of April 24, 2002;

II? resolution of the Aneel;

III? decision delivered within the framework of the Judicial Power, carried forward on trial; and

IV? (VETADO)

§ 4º The deduction of which treats § 3º is allowed only in the hypothesis where the accounting adjustment characterize revenue cancellation subject to the incidence of PlS/Pasep and Cofins, in the form established by the Registry of the Federal Revenue.

§ 5º Without prejudice to the provisions of § § 3º and 4º, optant electric power generators will be able to exclude from the basis of calculation of the contribution to PIS/Pasep and Cofins the value of the earned income with the compulsory sale of electric power by means of the Energy Allocation Mechanism, of which it treats the single paragraph of the art. 14 of Law No. 9,648 of May 27, 1998, introduced by Law No. 10,433 of April 24, 2002.

§ 6º Applied to the special scheme of which it treats this article the remaining standards applicable to the contributions referred to in the caput, observed what follows:

I? in relation to PIS/Pasep, the provisions of the arts do not apply. 1º to 6º;

II? in relation to the generating facts which occurred until August 31, 2002, the payment of the due values corresponding to the Cofins and PIS/Pasep could be made with dispensation of fine and of moratory interest, provided that they are effected in a single instalment, until the last business day of the month of September 2002.

§ 7º (VETADO)

Art. 48. (VETADO)

Art. 49. The art. 74 of Law No. 9,430 of December 27, 1996, passes the invigoration with the following essay:

?Art. 74. The taxable person who ascertains credit, including the judicial with transit on trial, concerning the tax or contribution administered by the Registry of the Federal Revenue, Liable for restitution or redressaration, may use it in the compensation of debits of its own relative to any tributes and contributions administered by that Organ.

§ 1º The compensation of which treats the caput will be effected upon delivery, by the passive subject, of declaration in which constarred information regarding the credits used and the respective compensated debits.

§ 2º The compensation declared to the Registry of the Internal Revenue Officer extinguishes the tax credit, under resolute condition of its subsequent homologation.

§ 3º In addition to the hypotheses laid down in the specific laws of each tribute or contribution, will not be able to be the object of compensation:

I? the balance to be restituted ascertained in the Annual Adjustment Statement of the Income Tax of the Physical Person;

II? the debits concerning tributes and contributions due in the record of the Declaration of Import.

§ 4º The pending applications for compensation by the administrative authority will be considered as a declaration of compensation, since its protocol, for the purposes set out in this article.

§ 5º A Secretary of the Federal Revenue Office will discipline the provisions of this article.? (NR)

Art. 50. The caput of the art. 6º of Law No. 9,826 of August 23, 1999, passes the vigour with the following essay:

" Art. 6º The export of domestic products without having occurred its exit from the Brazilian territory will only be admitted, producing all tax and foreign exchange effects, when the payment is effective in foreign currency of free conversibility and the sale is held for:

..........................................................................................................................................................? (NR)

Art. 51. The caput of the art. 52 of Law No. 9,532 of December 10, 1997, it passes the invigoration with the following amendment:

?Art. 52. The value of the IPI due in the customs disembarkation of the cigarettes of the Tipi code 2402.20.00 will be ascertained in the same way as for the national product, taking the basis of the framing class released by the Registry of the Federal Revenue Office.

..........................................................................................................................................................? (NR)

Art. 52. The art. 33 of the Decree-Law No. 1,593 of December 21, 1977, it passes the invigoration with the following amendment:

" Art. 33. The following penalties apply, in relation to the seal of control of which it treats art. 46 of Law No. 4,502 of November 30, 1964 on the occurrence of the following infractions:

I? sale or exposure to the sale of product without the seal or with a stamp employment already used: fine equal to the commercial value of the product, not less than R$ 1,000.00 (thousand reais);

II? employment or possession of legitimate seal not acquired by the establishment itself directly from the supplier apportionment: a fine of R$ 1.00 (a real one) per unit, not less than R$ 1,000.00 (thousand reais);

III? stamp employment intended for national product, when it comes to foreign product, and vice-versa; employment of seal intended for amusing product; employment of stamp not used or marked as scheduled in act of the Registry of the Federal Revenue Office; employment of seal that is not in circulation: consider the products as unsealed, equipping themselves to infringe upon the lack of payment of the Industrialized Products Tax, which will be chargeable, in addition to the fine equal to 75% (seventy-five per cent) of the value of tax required;

IV? fabrication, sale, purchase, assignment, use or possession, loose or applied, of false control stamps: irrespective of criminal sanction cabbable, fine of R$ 5.00 (five reais) per unit, not less than R$ 5,000.00 (five thousand reais), in addition to the apprehension of the unused stamps and the application of the penalty of pervation of the products in which the stamps have been used;

V? product transport without the seal or with employment of seal already used: fine equal to 50% (fifty per cent) of the commercial value of the product, not less than R$ 1,000.00 (thousand reais).

§ 1º Apply for the same sentence comprised in the inciso II to those who provide the other establishment, of the same legal person or of third parties, legitimate control stamps acquired directly from the supplier apportionment.

§ 2º Apply still to penalty of pervation to the products of code 24.02.20.00 of the Incidence Table of Industrial Products Industrialized Products (Tipi):

I? in the hypothesis that they treat the incisos I and V of the caput;

II? found in the industrial establishment, packaged in packaging intended for marketing, without the seal of control.

§ 3º For the purposes of applying the penalties provided for in this article, and there is the finding of products with control stamps at odds with the standards set by the Revenue Office Federal, it will be considered irregular the totality of the identified lot where the same were found. " (NR)

Art. 53. Manufacturing, in establishment of third parties, of the products of code 24.02.20.00 of the Tipi.

Paragraph single. To the establishments that receive or have in their power raw materials, intermediate products or packaging material for the manufacture of cigarettes to third parties, the penalty provided for in the inciso II of the art applies. 15 of the Decree-Law No. 1,593, of December 21, 1977.

Art. 54. The paper for cigarettes, in coils, can only be sold, in the domestic market, the industrial establishment that has posted the Special Record that it treats art. 1º of the Decree-Law No. 1,593 of December 21, 1977, with the wording given by Provisional Measure No. 2.158-35, of August 24, 2001.

Art. 55. At Conventions aimed at avoiding double taxation of income, to be firmed up by Brazil with member countries of the Southern Common Market (Mercosur), provision will be included by providing for the granting of credit tax credit on profits and dividends received by legal person domiciled in Brazil that was to be paid in the other signatory country, but that there was no temporary effective law enforcement of encouraging economic, national, regional or setorial.

Single paragraph. The credit referred to in the caput, observed the remaining general conditions of concession and others that come to be established in specific legislation, will only be admitted when the profits or dividends distributed provenham, directly, from activity developed in the signatory foreign country, relative to the sectors:

I? industrial, except from the cigarette and beverage industry in general, including those concentrated from these;

II? agricultural, of forestation or fishing.

Art. 56. (VETADO)

Art. 57. The charge that it treats art. 1º of the Decree-Law No. 1,025 of October 21, 1969, including on the condition that it treats art. 3º of the Decree-Law No. 1,569 of August 8, 1977 on the payments of debits relating to tributes and contributions administered by the Office of the Federal Revenue Officer, entered into the Union Active Debt, and effected from May 15, 2002, at virtue of an exonerative character norm, including in the hypotheses that they treat the arts. 13 and 14 of this Act, shall be calculated on the values originally due, limited to the value corresponding to the fine calculated in the terms of § 3º of the art. 13.

Art. 58. The art. 42 of Law No. 9,430 of December 27, 1996, it passes on the invigoration plus of the following § § 5º and 6º;

?Art. 42 .......................................................................................................................................................

§ 5º When it proved that the values credited to the deposit or investment account belong to the third party, evidencing interposition of person, the determination of income or revenue will be effected in relation to the third party, in the condition of effective deposit or investment account holder.

§ 6º Na hypothesis of deposit or investment accounts held together, whose declaration of income or information of the holders has been submitted separately, and where there is no substantiation of the origin of the resources pursuant to this article, the value of income or revenue will be imputed to each holder upon division among the total income or revenue by the amount of holders.? (NR)

Art. 59. The art. 23 of the Decree-Law No. 1,455 of April 7, 1976, it passes the following with the following amendments:

?Art. 23 .......................................................................................................................................................

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

V? foreign or domestic, in importation or exportation, in the concealment hypothesis of the taxable person, of the actual seller, buyer or of responsible for the operation, upon fraud or simulation, including the fraudulent interposition of third parties.

§ 1º The damage to the erarium arising from the infractions foreseen in the caput of this article will be punished with the penalty of peruse of the goods.

§ 2º Presume-if fraudulent interposition in the foreign trade operation to non-substantiation of the origin, availability and transfer of the employed resources.

§ 3º The penalty provided for in § 1º converts to a fine equivalent to the customs value of the goods that is not found or that has been consumed.

§ 4º The provisions of § 3º do not prevent the seizure of the goods in the cases provided for in the inciso I or when it is prohibited its import, consumption or circulation in the national territory. " (NR)

Art. 60. The art. 81 of Law No. 9,430 of December 27, 1996, it passes on the following with the following amendments:

?Art. 81 .......................................................................................................................................................

§ 1º It will also be declared inapt the enrolment of the legal person not to prove the origin, availability and effective transfer, if it is the case, of the resources employed in operations of foreign trade.

§ 2º For the purposes of the provisions of § 1º, the substantiation of the origin of resources from abroad give it upon, cumulatively:

I? proof of the regular closing of the foreign exchange operation, including with the identification of the overseas financial institution charged with the shipment of the resources to the Country;

II? identification of the sender of the resources, thus understood as the titular physical or legal person of the resources remitted.

§ 3º In the case of the sender referred to in the inciso II of § 2º being legal person should be also identified the members of their societional and managerial cadres.

§ 4º The provisions of § § 2º and 3º applies, too, in the hypothesis that it treats § 2º of the art. 23 of the Decree-Law No. 1,455, of April 7, 1976. " (NR)

Art. 61. (VETADO)

Art. 62. The art. 15 of Law No. 10,451 of May 10, 2002, passes the invigoration with the following essay:

?Art. 15. This Act comes into force on the date of its publication, producing effects, in the case of the arts. 1º and 2º; in relation to the generative facts occurring from 1º January 2002, noted the provisions of the art. 1º of Law No. 9,887, of December 7, 1999.? (NR)

Art. 63. The art. 21 of Law No. 9,532 of December 10, 1997, amended by Law No. 9,887 of December 7, 1999, passes the invigoration with the following essay:

" Art. 21. Regarding the generative facts occurred during the years-calendar 1998 a to 2003, the aliquot of 25% (twenty five percent), constant of the tables of which they treat the arts. 3º and 11 of Law No. 9,250 of December 26, 1995, and the corresponding plots to be deducted, shall respectively become the aliquot, of 27.5% (twenty-seven whole and five tenths per cent), and the parcels to be deducted, by December 31, 2001, from R$ 360.00 (three hundred and sixty reais) and R$ 4,320.00 (four thousand, three hundred and twenty reais), and as of 1º January 2002, those determined by art. 1º of Law No. 10,451 of May 10, 2002, namely from R$ 423.08 (four hundred and twenty three reais and eight cents) and R$ 5,076.90 (five thousand and seventy-six reais and ninety cents).

Paragraph single. They are reinstated, regarding the generating facts occurring from 1º January 2004, the aliquot of 25% (twenty five cent) and the respective plots to be deducted from R$ 370.20 (three hundred and seventy real and twenty cents) and of R$ 4,442.40 (four thousand, four hundred and forty two real and forty cents), of which treat the arts. 3º and 11 of Law No. 9,250 of December 26, 1995, modified in coherence with art. 1º of Law No. 10,451, of May 10, 2002.? (NR)

Art. 64. The art. 43 of the Provisional Measure No. 2.158-35, 2001, passes the invigorated vigour of the following § 2º, renumbering the single paragraph for § 1º:

" Art. 43 .........................................................................................................................................

§ 2º The provisions of this article, with regard to the products classified in headings 84.32 and 84.33, achieves only the self-propelled vehicles described in Codes 8432.30, 8432.40.00, 8432.80.00 (except rolls for lawn or field of sport), 8433.20, 8433.30.00, 8433.40.00 and 8433.5. " (NR)

Art. 65. (VETADO)

CHAPTER III

OF THE FINAL PROVISIONS

Art. 66. The Registry of the Federal Revenue Officer and the Attorney General of the National Finance shall, within their respective powers, the standards necessary for the application of the provisions of this Act.

Art. 67. (VETADO)

Art. 68. This Act comes into force on the date of its publication. producing effects:

I? as of 1º October 2002, in relation to the arts. 29 and 49;

II? as of 1º December 2002, in relation to the arts. 1º to 6º and 8º to 11;

III? as of 1º January 2003, in relation to the arts. 34, 37 a to 44, 46 and 48;

IV? from the date of the publication of this Law, in relation to the remaining articles.

Brasilia, December 30, 2002; 181º of Independence and 114º of the Republic.

FERNANDO HENRIQUE CARDOSO

Pedro Malan