Legislation - Laws

Amends Law no. 9430 of December 27, 1996, and provides for other matters


THE PRESIDENT OF THE REPUBLIC - Let it be known that National Congress has passed and I have signed the following MP into Law:

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Article 5 Article 22 of Law no. 9430 of December 27, 1996 becomes effective with the following amendments:

"Article 22. The interest paid or credited to a related person shall only be deductible for purposes of determining the income tax and social contribution bases up to the amount that does not exceed that calculated based on a rate determined hereunder, plus a percentage margin as spread, to be defined by an act issued by the Minister of Finance based on the market average, as pro-rated according to the period to which said interest refers.

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Paragraph 6 The rate addressed in the main section hereof will be:

I - that applicable to the market of the Federative Republic of Brazil sovereign bonds issued in foreign markets in United States dollars, in the case of transactions in United States dollars at a fixed rate;

II - that applicable to the market of the Federative Republic of Brazil sovereign bonds issued in foreign markets in Brazilian reais, in the case of transactions abroad in reais, at a fixed rate; and

III - the London Interbank Offered Rate - LIBOR for a period of six (6) months, in other cases.

Paragraph 7 The Minister of Finance may set the rate referred to in the main section hereof in the event of transactions in reais carried out abroad at a floating rate.

Paragraph 8 In the case of item III of paragraph 6, for transactions performed in other currencies in which no Libor rate is disclosed, the Libor rate for US-dollar deposits should be used.

Paragraph 9 The checking referred to hereunder shall take place on the date the transaction is taken out, and apply to contracts entered into on or after January 1, 2013.

Paragraph 10. For purposes of the provisions set forth in paragraph 9, any novation and renegotiation are deemed as new contracts.

Paragraph 11. The provisions set forth in this article shall be governed by the Brazilian Federal Revenue Service, including with respect to the specifications and conditions for use of the rates provided for in the main section hereof and in paragraph 6." (AS REWORDED)

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Article 13. This Law comes into force from its publication date, producing effects:

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II - as from January 1, 2013, in relation to the articles 2, 3 and 5;

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Article 14. Paragraph 5 of article 22 of Law no. 9430 of December 27, 1996 is hereby repealed.
Brasília, December 27, 2012; 191st year of Independence and 124th year of the Republic.

DILMA ROUSSEFF