On February 12, 2014, Act No. 1/2014, enacted by National Congress, was published in the Official Gazette, extending the effectiveness term of Provisional Measure No. 627, dated November 11, 2013, for a period of 60 (sixty) days.
According to Article 62, §§3 and 7 of the Constitution, a Provisional Measure is effective for 60 (sixty) days and renewable for one equal period, in the case where it has not been voted in both Houses of Congress.
Thus, Act No. 1/2014 of National Congress extended the term of effectiveness of Provisional Measure No. 627/2013 until April 13th, 2014. The main purposes of said Provisional Measure are, among others:
(i) modifications to the Income Taxes (IRPJ and CSLL) and Taxes on Revenues (PIS/PASEP and COFINS) legislation;
(ii) repeal of the Transition Tax Regime (“RTT”); and
(iii) establishment of Brazilian CFC rules.