According to the guidelines announced by the Brazilian Revenue Service, expressed in Answer to Consultation n. 174, of the 10th Tax region, the substitute social security contribution provided by art. 8, Law n. 12.546, of 2011, applicable to the gross revenue in the events contemplated by the legislation, in the cases of contracts with a term longer than one year must be calculated by applying to the total price the percentage of the contract or of the production performed each month.

It should be mentioned that the gross revenue amount consequent of exportation must be considered when calculating the contribution reduction percentage over the payroll, whether in connection with the gross revenue of the activities not related to the product manufacturing, or with the total gross revenue.

(Enquire Solution n. 174, Dec. 04.2012).