Provisional Measure No. 694/2015 was published on September 30th, 2015, with the purpose of changing the following tax rules:
- Increasing the withholding tax rate levied on the payment or credit of interest on equity from 15% (fifteen percent) to 18% (eighteen percent), as well as limiting the interest deducted to the lowest of 5% (five percent) or the Long-Term Interest Rate – TJLP;
- Suspending, during the calendar year of 2016, the following benefits under Law 11,196/2005 (the so-called “Lei do Bem” in Portuguese) relating to the exclusion of IRPJ and CSLL from amounts exceeding the expenses actually incurred with research and development:
- Directly by a retained Scientific and Technological Institution or by private scientific and technological nonprofit organizations; and
- By entities from the computing, automation and information technology industries.
- Raising the PIS-Import and COFINS-Import tax rates from, respectively, 0,54% (zero point fifty four percent) and 2,46% (two point forty six percent) to 1,11% (one point eleven percent) and 5,02% (five point zero two percent), from January 1st, 2016, onwards, applicable to imports of the following products:
- Ethane, propane and butane to be used for to ethylene and propane production;
- Petrochemical naphtha and condensed naphta for petrochemical centrals; and
- Ethane, propane, butane, butadiene, ortho-xylene, benzene, toluene, isoprene and paraxylene, where the import is made by chemical industries.
The above mentioned rules come into force on 1st January, 2016.