Law n. 12.766, of Dec. 27. 2012, DOU-I, Dec. 28. 2012, deals with various subjects, among which the following should be highlighted:

  • It introduces changes in the legislation dealing with administrative public and private enterprise contracts (Parceria Público Privada- PPP). The law provides that the contribution of funds by the public partner in favor of the private partner as payment of a variable remuneration, during the investment stage of the project and/or after making the services available, will be defined in the contract and authorized in the tender notice for new contracts or, in specific law, if the contracts were executed before August 8, 2012.

Within the tax scope, the contribution amount may be excluded from the calculation of the real profit and from the CSLL, COFINS and PIS contribution calculation basis, as the costs to accomplish the works and acquire reversible assets are incurred.

  • It introduces changes in the transfer price rules, specifically with respect to the deduction limits of the interest charged or credited among associated legal entities for the purposes of calculating the real profit. The adopted interest rate cannot exceed i) the market rate of Brazilian sovereign bonds issued in the foreign market in US dollars, in the event of operations in US dollars with a pre-set rate; ii) the market rate of Brazilian sovereign bonds issued in the foreign market, in the event of operations in Brazilian Reais abroad with a pre-set rate; and iii) the LIBOR for a six-month term, in the other cases. When determining the limit, a spread will be added as defined by the Ministry of Finance.

The new limits will apply to contracts as of January 1st, 2013, and any amendment or new pact will be deemed a new contract.

  • It sets forth the new amounts for fines due for failure to comply with ancillary tax obligations in connection with the untimely presentation of statements and digital bookkeeping. In the cases of untimely presentation of the documents, the fine amount varies between R$500 and R$ 1.5 per month/calendar depending on the type of breach and of the income tax calculation method. If the taxpayer presents a statement with information that proves to be inaccurate, incomplete or omitted, the fine will be of 0.2%, but not lower than R$100,00, and will be calculated over the turnover of the month preceding the presentation of the mistaken statement or bookkeeping.

(Law n. 12.766, Dec. 27.2012, DOU-I, Dec. 28.2012. Available at:<http://www.planalto.gov.br/ccivil_03/_ato2011-2014/2012/lei/l12766.htm>. Access in: Jan. 2013).