Small agricultural producer shall mean the natural person, covered by the scheme's alleged income of the income tax act " , and which operates one or more farms whose total tax appraisal does not exceed the equivalent of 100 monthly tax units for the month of January for the respective year. In each repricing of the farms that practice by virtue of the provisions of article 3 of law No. 17.235, the amount corresponding to 100 monthly tax units shall be adjusted by the same percentage of variation that is determined between the new total of the appraisals of the agricultural lands not exceeding this amount , and what was said before reavalúo. For these purposes, the new limit of monthly tax units shall be expressed in whole numbers up to the entire tenth top five and despising the less than this decimal.
Be understood, also, as small farmers to natural persons benefiting from the regime of rent alleged of the income tax Act, that they exploit farms whose fiscal valuation greater than 100 tax units per month provided that your sales do not exceed a net amount of 200 tax units per month, in the period of twelve months, pointed out in the letter e).
(b) products that sold must be agricultural and may not be purchased from third parties, except that in the case of sales of animals purchased for breeding and fattening.
(c) the tax credit with the right to return must comply with all the requirements that this respect Decree Law N ° 825, 1974.
d) refund of the tax credit not recovered through other legal mechanism, only proceed when small agricultural producers to make sales to taxpayers as indicated in the letter g), for which issued invoices of purchases, and may not exceed such tax refund corresponding by services that do not exceed 70% of such sales and purchases , in net values, in the same tax period. However, the right to a refund of the tax credit shall apply only up to a net amount of sales of 200 monthly tax units with respect to a small agricultural producers, in the period of twelve months referred to in the next letter.
(e) the application for refund of the tax credit must occur before the internal revenue service in the month of June of each year, with respect to the purchases made or services used in the twelve months immediately preceding. The request will contain specifications that set this service and she will accompany bills of the period, both acquisitions and used services as of sales. Within two months of the filing of the application, the Treasury service, following a report from the internal revenue service, it will return to small agricultural producers, without further processing, the amount corresponding tax credit concept, more a readjustment equivalent to 50% of the variation of the index of prices given in the period of twelve consumer respective months.
(f) the amount of the tax from purchase invoices referred to in the previous letter in which emission is detected infringements, be deducted entirely in the amount by which the return is requested, either callable refund the proportional amount received, will be considered for all purposes as a difference of the value added tax. While she is not returned to the quantities corresponding to this unreasonable returns, small agricultural producers not may follow impetrando the benefit referred to in this article, without prejudice to the sanctions that apply in accordance with provisions in other legal texts.
((g) for the purposes of the provisions of point (d)), the Director of the internal revenue service may establish, for certain companies to declare their taxes on the basis of full accounting, the obligation to issue invoices, purchases that make to small agricultural producers, withhold, declare and pay the tax to the added value that corresponds to the operation without any deduction of any species, assuming the company all obligations established by Decree Law No. 825, 1974, for contributing seller of goods. Use of this allocation, the Director shall consider the amount of sales of companies, its capital or any other history or requirement which ensures adequate control of the purchasing invoice issued. The Director may suspend or abolish the obligation to issue invoices of purchases, with regard to companies that it deems appropriate exclude system referred to in this article.
(h) the companies referred to in the letter above, so this article will be applicable, must register in a role in the form, term and conditions established by the internal revenue service. In addition, this service may require small agricultural producers to register in this role. The mentioned service may require information that it deems necessary, impose display and annotation of identification bills respective demand requirements and special obligations in the issuance of invoices of purchases, and any operation that is indispensable for the due receipt of tax interest and even suspend or remove the requirement to deliver some or all of the invoices to request the refund of the tax credit.
(i) non-compliance with the provisions contained in the preceding subparagraphs and requirements or requirements established on the occasion of them, will make apply the sanctions provided for in the tax code. Notwithstanding the origin of these sanctions, small agricultural producers who commits any of the offences contained in number 4 of article 97 of the tax code, shall be definitively excluded from the right to a refund of the tax credit which authorizes this article.
(j) the provisions of this article shall be applicable from the 1st day of the month following the publication of this law in the "official journal", affecting purchases or services showing by small agricultural producers for the twelve months prior to June 1991.