PROVISIONAL MEASURE 612/2013 – CHANGE OF TAX LEGISLATION

 On the last April 4th was published the Provisional Measure 612 which changed the tax laws. Among the changes implemented are: (i) changing of presumed profit option (ii) and changing in the new Social Security Contribution on Gross Revenue.

 According to this provisional measure from January 1st on companies whose gross revenues in the preceding calendar year had been equal or less than R$ 72,000,000.00 could make the option by the presumed option taxation.

 A list of products was changed and new services were included under the new Social Security Contribution on Gross Revenue, as example we mention: transportation services, research and development, engineering, maintenance and repair, installation, construction, loading, unloading and storage, maritime agency and airport infrastructure.

 NOTE: In the Brazilian Constitutional Law, provisional measure (“Medida Provisória”) is an act of the President (Chief of Executive), with the force of law, without the participation of the Legislature, which will only be called to discuss it and approve it at a later date. The assumption of the provisional measure is urgency and relevance, cumulatively.