TAX REPORT Nº 2

MUNICIPALITY OF RIO DE JANEIRO LEGISLATION:

DECREE Nº 36.776, OF FEBRUARY 15, 2013

Decree No. 36.776, published on February 18, 2013, regulates the remission of, the amnesty to and the granting of payment plans for debts referring to ISS, IPTU, waste collection and street cleaning fee (TCLLP) and the discontinued waste collection fee (TCL) and street lighting fee (TIP).

With respect to the ISS, the overdue tax debts assessed through a notice of tax deficiency or notice of assessment not yet recorded as an overdue liability, may be paid: (i) in a one-time payment, with remission of 70% of the late fees and if applicable, 70% amnesty of fines related to taxable events occurred up until October 31, 2012; and (ii) in a payment plan, with remission of 50% of the late fees and if applicable, amnesty of 50% of the fines, provided that the conditions set forth in the mentioned decree are duly met. 

For IPTU and TCL, the overdue tax debts not yet registered as an overdue tax liability may be paid: (i) in a one-time payment, with remission of 70% of the late fees, when derived from IPTU and TCL, related to taxable events occurred up until December 31, 2011; and (ii) in a payment plan, with remission of 50% of the late fees, provided that the conditions set forth in the mentioned decree are duly met. 

Finally, the tax debts related to TIP, TCLLP and IPTU are pardoned only in regards to the amount exceeding the application of a minimum rate related to the type of real estate, related to taxable events prior to fiscal years 1999 and 2000, with observance of the provisions of the referred decree.