Skip to main content

  • AddRemove
  • Build a Report 
Legal Update

Brazil: PM No. 694/2015: Change in the Rules Applicable to Interest on Equity; Suspension of Tax Benefits Provided Under Law 11,196/2005 (the So-Called “Lei do Bem” in Portuguese); and Increase of the Rates Relating to PIS-Importation and COFINS-Importation Levied on Imports of Chemical Compounds

7 October 2015
Tauil & Chequer Legal Update

Provisional Measure No. 694/2015 was published on September 30th, 2015, with the purpose of changing the following tax rules:

  1. 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;
  2. 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.
  3. 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.


The Build a Report feature requires the use of cookies to function properly. Cookies are small text files that are placed on your computer by websites that you visit. They are widely used in order to make websites work, or work more efficiently. If you do not accept cookies, this function will not work. For more information please see our Privacy Policy

You have no pages selected. Please select pages to email then resubmit.