# Article 40 of the Constitution of Brazil

- Jurisdiction: Brazil (BR)
- Article: 40
- Chapter (as indexed): Chapter II: – Social
- Source document: Brazil Constitution
- Canonical (HTML): https://www.portablelaw.com/provision/88e0a24a-9530-48e5-a029-340acb6866ed
- This document: https://www.portablelaw.com/provision/88e0a24a-9530-48e5-a029-340acb6866ed/md
- Constitution: https://www.portablelaw.com/countries/561c3433-2160-4ca0-8e5a-8f5e9dbd522c

## Verbatim text

````
c
onstitutional
p
rovisions a
ct. (
ca
n
o. 42, 2003)
a
rticle 93.
t
he provisions of article 159, iii
, and paragraph 4 shall only come
into force after the promulgation of the law referred to in said item iii
. (
ca n
o. 42,
2003)
ar
ticle 94.  th
e special tax regimes for micro and small businesses which are
specific of the Union, the States, the Federal District, and the Municipalities shall be discontinued as from the date the regime set forth in article 146,
iii
, d, of the
c
onstitution comes into force. (
ca
n
o. 42, 2003)
ar
ticle 95.  P
ersons born abroad between June 7, 1994, and the date of enactment of
this c
onstitutional a
mendment21, to a Brazilian father or a Brazilian mother, may be
registered with a Brazilian diplomatic or consular authority, or with an official registry if they come to reside in the Federative Republic of Brazil. (CA  No. 54, 2007)
a
rticle 96.
a
cts aimed at the establishment, fusion, merger, and dismemberment
of municipalities, whose act of creation was published on or before d
ecember 31,
2006, are hereby confirmed, provided that the requirements set forth in the legislation of the respective state at the time of establishment of said municipalities have been fulfilled. (CA No. 57, 2008)
ar
ticle 97.  up
until the supplementary law referred to in pa
ragraph 15 of ar
ticle 100
of the fe
deral co
nstitution is enacted, the st
ates, the fe
deral di
strict, and Municipalities
which, on the date of enactment of co
nstitutional am
endment no. 62, have not yet
effected payment of past due court-ordered debts regarding their respective direct and indirect administration, including court orders issued during the period the special regime instituted by this article is in force, shall effect such payments in accordance
with the rules set forth in this article, whereas the provisions of
ar
ticle 100 of this
21 Should read as “Constitutional Amendment no. 54/2007”.
miolo_constitution_versao_camara.indd   194 17/6/2010   15:01:09
Temporary Constitutional Provisions Act 195
fe deral co nstitution shall not be applicable, save for its pa ragraphs 2, 3, 9, 10, 11, 12,
13, and 14, and without prejudice to conciliation agreements already formalized by the
date of publication of co
nstitutional am
endment no. 62. ( c
a no
. 62, 2009)
Paragraph 1.
The
States, the Federal District, and Municipalities subject to the
special regime set forth in this article shall, by means of an e
xecutive p
ower act, opt
for either:
i
– depositing the amount referred to in pa
ragraph 2 of this article into a
special account; or
II – adopting the special regime for a period of up to 15 (fifteen) years, in which
case the percentage to be deposited into the special account referred to in p
aragraph
2 of this article shall be equivalent to the total yearly balance of court-ordered debts, increased by the official rate applied to savings accounts and by simple interest applied at the same percentage of interest applied to savings accounts for the purpose of compensation of delay in the payment – the employment of compensatory interest being excluded, reduced by any paid amount, and divided by the remaining number of years in the special regime of payment.
pa
ragraph 2.
in
order to pay up both its past due and future accruing court-ordered
debts through the special regime, the s
tates, the f
ederal d
istrict, and Municipalities
in debt shall effect a monthly deposit into a special account created for such purpose, of 1/12 (one twelfth) of the amount calculated as a percentage of the respective net current revenues, as computed in the second month preceding the month of payment, whereas such percentage, calculated at the time of opting for the special regime and kept unchanged through the end of the period referred to in Paragraph 14 of this article, shall be equal to:
I – in the case of the States and of the Federal District:
a) at least 1.5% (one whole and five tenths per cent), for the States of the North,
Northeast, and Centre-West regions, in addition to the Federal District, or
for those States where the backlog of court orders owed by their respective direct and indirect administration corresponds to up to 35% (thirty-five per cent) of the total net current revenues;
b) at least 2% (two per cent), for the States of the South and Southeast Regions,
where the backlog of court orders owed by their respective direct and indirect administration corresponds to over 35% (thirty-five per cent) of the net current revenues;
II – in the case of Municipalities:
a) at least 1% (one per cent), for Municipalities of the North, Northeast, and
Centre-West regions, or for those Municipalities where the backlog of court
orders owed by their respective direct and indirect administration corresponds to up to 35% (thirty-five per cent) of the net current revenues;
b) at least 1.5% (one whole and five tenths per cent), for Municipalities of the
South and Southeast Regions, where the backlog of court orders owed by their respective direct and indirect administration corresponds to over 35% (thirty-five per cent) of the net current revenues.
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Constitution of the Federative Republic of Brazil 196
pa ragraph 3.  fo r the purposes of this article, net current revenues mean the
total sum of tax, industry, and agriculture revenues, property income, revenues from
contributions and from services, current transfers, and other current revenues, including those deriving from
p
aragraph 1 of a
rticle 20 of the f
ederal c
onstitution, such total
sum being computed in the period including the reference month and the 11 (eleven) preceding months, excluding any double counting but at the same time deducting:
i
– in the case of the s
tates, the portions remitted to the Municipalities as set
forth by the Constitution;
ii
– in the case of the s
tates, the f
ederal d
istrict, and Municipalities, the
contribution paid by respective employees to fund their own social security and social assistance system, as well as revenues deriving from the financial offsetting referred to in
p
aragraph 9 of a
rticle 201 of the
f
ederal
c
onstitution.
p
aragraph 4.
t
he special accounts referred to in p
aragraphs 1 and 2 shall be
managed by the respective Court of Justice, for payment of judicial orders issued by courts.
pa
ragraph 5.
th
e funds deposited into the special accounts referred to in
pa
ragraphs 1 and 2 of this article may not be returned to the st
ates, the fe
deral di
strict,
and Municipalities in debt.
Paragraph 6.
At
least 50% (fifty per cent) of the funds referred to in Paragraphs 1
and 2 of this article shall be used to pay court orders according to their chronological order of submission, with due regard for the priorities defined in Paragraph 1 of Article 100 – in the case of court orders of one same year, and in
p
aragraph 2 – in the case
of court orders of all years.
Paragraph 7.
If
it is not possible to ascertain the chronological priority between 2
(two) court orders, the court order stating the smallest amount shall be paid first.
p
aragraph 8.
t
he employment of the remaining funds shall depend on option to
be effected by the s
tates, the f
ederal d
istrict, and Municipalities in debt, through an
e
xecutive p
ower act, in accordance with the following modes, which may be applied
either separately or simultaneously:
I – payment of court orders by means of auctions;
ii
– payment in cash of court orders not paid up under the terms of p
aragraph
6 and of Item I, in a single, increasing order of respective amounts;
iii
– payment through direct agreement with creditors, under the terms of law
specific to each federating unit in debt, which may provide for the establishment and mode of operation of conciliation panels.
p
aragraph 9.
t
he following shall apply to the auctions referred to in i
tem i
of
Paragraph 8 of this article:
i
– auctions shall be carried out through an electronic system managed by an
entity authorized by the Brazilian Securities and Exchange Commission (CVM) or by the Central Bank of Brazil;
ii
– court orders – or a installment of a court order amount as designated by
its holder – with respect to which no appeal or challenge of any nature whatsoever is
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Temporary Constitutional Provisions Act 197
pending within the Judicial Power shall be qualified to take part in an auction, whereas,
at the initiative of the e
xecutive p
ower, it will be permitted to offset court-order debt
payments against clear legal debits, either registered or not under debts in execution and attributed to the original debtor by the
treasury
in debt up to the date of issuance
of respective court order, save for those whose enforceability has been stayed under the terms of the law, or which have already been subject to deduction under the terms of Paragraph 9 of Article 100 of the Federal Constitution;
III – auctions will be effected through public offer to all creditors qualified by
the respective federating unit in debt;
iv
– any creditor who meets the requirements of i
tem ii
shall be considered
automatically qualified;
v
– auctions shall be carried out as many times as necessary to meet the
available amount;
vi
– inclusion of an installment of the total amount in an auction will be
effected at the discretion of respective creditor, at an abatement in the amount of the installment;
VII – auctions shall take the form of debt abatement, associated with the largest
volume offered – either cumulated or not with the highest percentage of abatement, according to the highest percentage of abatement, in which case the maximum amount per creditor may be stipulated, or according to another criterion to be defined in a public call notice;
viii
– the price formation mechanism shall be stated in the public call notices
issued for each auction;
IX – the payment in part of a court order shall be ratified by the court which
issued said court order.
pa
ragraph 10.
sh
ould the funds referred to in it
em i
i
of pa
ragraph 1 and in
Paragraphs 2 and 6 of this article not be made available in due time:
i
– there shall be effected attachment of the relevant amount in the accounts
belonging to the s
tates, the f
ederal d
istrict, and Municipalities in debt, by order of
the p
residing Judge of the c
ourt referred to in p
aragraph 4, up to the limit of the
amount not made available;
ii
– there shall be established, as an alternative, by order of the p
residing
Judge of the relevant c
ourt, in favor of creditors of court orders, against the s
tates,
the f
ederal d
istrict, and Municipalities in debt, a clear legal right – self-enforceable
and irrespective of regulation – to automatic offsetting against clear debits attributed to said creditors by such debtors, whereas, there being a balance in favor of a creditor, such amount shall automatically be deductible from the taxes owed to the
s
tates, the
Federal District, and Municipalities in debt, up to the offsetting limits;
i
ii
– the head of respective ex
ecutive po
wer shall be held liable under the terms
of the legislation on fiscal responsibility and administrative dishonesty;
IV – for as long as non-compliance prevails, the federating unit in debt:
a) shall not be allowed to raise loans at home or abroad;
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Constitution of the Federative Republic of Brazil 198
b) shall not be entitled to receive voluntary transfers;
v
– the f
ederal Government shall not effect the remittances regarding the
re
venue s
haring f
und of the s
tates and the f
ederal d
istrict and the re
venue s
haring
f
und of Municipalities, depositing them instead into the special accounts referred to
in p
aragraph 1 of this article, whereas the employment of such amounts must comply
with
p
aragraph 5 of this article.
Paragraph 11.
As
regards a court order concerning several creditors in a joinder
of parties, the court of origin of said court order may dismember the total amount per
creditor, and each creditor may participate in an auction with the total amount such creditor is entitled to, the rule set forth in
p
aragraph 3 of a
rticle 100 of the f
ederal
c
onstitution not being applicable to such case.
p
aragraph 12.
s
hould the legislation referred to in p
aragraph 4 of a
rticle 100 not
be enacted within 180 (one hundred and eighty) days as from the date of enactment of
co
nstitutional am
endment no. 62, the following amounts shall prevail for the relevant
purposes, for the s
tates, the f
ederal d
istrict, and Municipalities in debt which have
failed to regulate the matter:
i
– 40 (forty) monthly minimum wages in the case of s
tates and the f
ederal
District;
ii
– 30 (thirty) monthly minimum wages in the case of Municipalities.
p
aragraph 13.
d
uring the period in which the s
tates, the f
ederal d
istrict, and
Municipalities in debt are effecting payment of court orders through the special regime, they may not be subject to attachment of amounts, except when the funds referred to in
i
tem ii
of p
aragraph 1 and in p
aragraph 2 of this article are not made
available in due time.
pa
ragraph 14.
th
e special regime for payment of court orders set forth in it
em i
of
p
aragraph 1 of this article shall be in force for as long as the amount of court-ordered
debts is higher than the amount of funds earmarked under the terms of Paragraph 2 of this article, or for a fixed period of 15 (fifteen) years in the case of the option referred to in
i
tem
ii
of
p
aragraph 1.
p
aragraph 15.
c
ourt-ordered debts divided into installments under the terms of
````

## What this means (mechanical reading aid, not legal advice)

- The index files this text under article 40 of the Constitution of Brazil.
- The index files it under the chapter heading “Chapter II: – Social”.
- The passage runs to about 2,390 words.
- Read plainly, it mentions assembly and association — it protects gathering together or joining a group, union or party (the words used: “associated”); it mentions property — it addresses property, possession, or taking property compulsorily (the words used: “property”); it mentions equality and non-discrimination — it requires equal treatment or forbids discrimination (the words used: “equal”); it mentions movement and residence — it concerns moving around, living where you choose, or leaving the country (the words used: “reside”); it mentions pay and pensions — it sets pay, salary, allowance or pension terms (the words used: “wages”).
- **Caveat:** The row’s stored title is a body fragment, not a heading (“of this temporary”), so it is not used as the provision’s title here.
- **Caveat:** The index gives this passage an article number but stores a body fragment where a heading would be, so the number could not be cross-checked against the text. Check it against the official Constitution before relying on it in a citation.

> This is a mechanical reading aid generated from the text above by matching words in it. It is not legal advice, not a lawyer’s interpretation, and not a substitute for the provision itself.

## How to cite this

Constitution of Brazil, article 40, Portable Lawyer, https://www.portablelaw.com/provision/88e0a24a-9530-48e5-a029-340acb6866ed (accessed 27 September 2026).

## Related

- [Constitution of Brazil](https://www.portablelaw.com/countries/561c3433-2160-4ca0-8e5a-8f5e9dbd522c)
- [Brazil on Portable Lawyer](https://www.portablelaw.com/countries/561c3433-2160-4ca0-8e5a-8f5e9dbd522c)
- [HTML version of this provision](https://www.portablelaw.com/provision/88e0a24a-9530-48e5-a029-340acb6866ed)
- [Machine-readable corpus digest](https://www.portablelaw.com/llms-full.txt)

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Portable Lawyer · Article 40 of the Constitution of Brazil (chapter: “Chapter II: – Social”). c onstitutional p rovisions a ct. ( ca n o. 42, 2003) a rticle 93. t he provisions of article 159, iii , and paragraph 4 shall only come into force after the promulgation of the…