In Answer to Consultation n. 46, of February 27, 2013, the Brazilian Revenue Service understood that the Income Tax (Imposto de Renda – IR), the Contribution for Intervention in the Economic Domain (Contribuição de Intervenção no Domínio Econômico – CIDE), PIS and COFINS are not imposed on the transfer of know-how to a Brazilian legal entity by a shareholder domiciled abroad to pay up its shares.

(Enquire Solution n. 46, 27.02.2013, DOU-I, Apr. 03, 2013).