Provisional Measure No. 694/2015 Is No Longer Valid

Provisional Measure No. 694, enacted on September 30, 2015, is no longer valid, in view of the expiration of the deadline for its conversion into law. The MP should have been converted into law up to March 8, 2016, but the Senate did not submit the text to polling.

The main changes proposed by MP 694/2015 were the following:

Interest on Net Equity

Increase of the WHT rate levied on IOE from 15% to 18% and limitation of the maximum IOE amount up to the TJLP, pro rata die, or 5% per year, which were the lowest.

Petrochemical and Chemical Industry PIS/COFINS

Increase of the PIS/COFINS rates applicable in the industry and revocation of differentiated rates provided for imports to be made in the years of 2017 and 2018, as well as revocation of certain specific provisions regarding presumed credits granted to petrochemical companies and credit discounts of PIS/COFINS.

Tax incentives for Research and Development of Technological Innovation...