Article 87 — For purposes of the provisions set forth in paragraph

3 of article 100 of the Federal Constitution, and in article 78 of this temporary c onstitutional p rovisions a ct, and until such time as the official publication of the respective defining acts by the units of the f ederation is effected, the debts or bonds stated in court orders shall be considered as being of a small amount, with due regard for paragraph 4 of article 100 of the f ederal Constitution, if their amount is equal to or lesser than: i – forty minimum monthly wages, in the case of debts owed by the Tax Authorities of the States and of the Federal District; ii – thirty minimum monthly wages, in the case of debts owed by the tax a uthorities of the Municipalities. Sole paragraph. sh ould the amount under execution exceed the amount stipulated in this article, payment shall always be made by means of a court order, the execution creditor being entitled to waiving the credit of the excess amount, so that he may opt to receive the balance without the emission of a court order, in the manner set forth in paragraph 3 of article 100. ar ticle 88. un til such time as a supplementary law regulates the provisions of items i and iii of paragraph 3 of article 156 of the f ederal c onstitution, the tax referred to in item iii of the head paragraph of said article shall: i – have a minimum rate of two percent, save for the services referred to in items 32, 33, and 34 of the li st of se rvices appended to Decree-Law no. 406, of December 31, 1968; II – not be subject to the granting of fiscal exemptions, incentives, and benefits, should the direct or indirect result of such granting be the reduction of the minimum rate stipulated in item i .” a rticle 4. t his c onstitutional a mendment shall come into force on the date of its publication. b rasília, June 12, 2002. THE DIRECTING BOARD OF THE CHAMBER OF DEPUTIES: Aécio Neves, pr esident – Barbosa Neto , se cond vi ce-pr esident – Nilton Capixaba , se cond se cretary – Paulo Rocha , t hird s ecretary – Ciro Nogueira, f ourth s ecretary. THE DIRECTING BOARD OF THE FEDERAL SENATE: Ramez Tebet, p resident – Edison Lobão, f irst vice- p resident – Carlos Wilson, f irst s ecretary – Antero Paes de Barros, s econd s ecretary – Ronaldo Cunha Lima, t hird s ecretary – Mozarildo Cavalcanti , f ourth s ecretary. p ublished in the Official Journal , June 13, 2002. miolo_constitution_versao_camara.indd 304 17/6/2010 15:01:14 Constitutional Amendments 305 Constitutional amen D ment n o. 38, 2002 Adds article 89 to the Temporary Constitutional Provisions Act, to include the Uniformed Police Force of the former Federal Territory of Rondônia in the Personnel Cadre of the Union. t he d irecting b oards of the c hamber of d eputies and of the f ederal s enate, under the terms of paragraph 3 of article 60 of the f ederal c onstitution, promulgate the following Amendment to the constitutional text: a rticle 1. t he temporary c onstitutional p rovisions a ct shall henceforth include the following article 89: “ar ticle 89. th e members of the uniformed police force of the former f ederal territory of r ondônia, who, in accordance with official documents, were regularly exercising their functions and rendering services to such former territory at the time it was transformed into a s tate, as well as the uniformed police officers who were appointed by virtue of a federal law and are paid by the Union, shall be included in a special job class to be eventually terminated within the federal government services, being ensured of their specific rights and advantages, whereas the payment, under any circumstances, of remuneration differences, as well as reimbursement or compensation of any nature, prior to the promulgation of this a mendment, shall be forbidden. Sole paragraph. t he members of the uniformed police force shall go on rendering services to the s tate of r ondônia in the quality of detailed personnel, subject to the legal and regulatory provisions which govern the corps of their respective uniformed police force, with due regard for compatibility between the duties of their function and their rank in the hierarchy.” a rticle 2. t his c onstitutional a mendment shall come into force on the date of its publication. b rasília, June 12, 2002. THE DIRECTING BOARD OF THE CHAMBER OF DEPUTIES: Aécio Neves, pr esident – Barbosa Neto , se cond vi ce-pr esident – Nilton Capixaba , se cond se cretary – Paulo Rocha , t hird s ecretary – Ciro Nogueira, f ourth s ecretary. THE DIRECTING BOARD OF THE FEDERAL SENATE: Ramez Tebet, p resident – Edison Lobão, f irst vice- p resident – Carlos Wilson, f irst s ecretary – Antero Paes de Barros, s econd s ecretary – Ronaldo Cunha Lima, t hird s ecretary – Mozarildo Cavalcanti , f ourth s ecretary. p ublished in the Official Journal , June 13, 2002. miolo_constitution_versao_camara.indd 305 17/6/2010 15:01:14 Constitution of the Federative Republic of Brazil 306 Constitutional amen D ment n o. 39, 2002 Adds article 149-A to the Federal Constitution (creates a contribution to finance public lighting services in the Municipalities and in the Federal District). t he d irecting b oards of the c hamber of d eputies and of the f ederal s enate, under the terms of paragraph 3 of article 60 of the f ederal c onstitution, promulgate the following Amendment to the constitutional text: a rticle 1. t he f ederal c onstitution shall henceforth include the following article 149-A: “ a rticle 149- a . t he Municipalities and the f ederal d istrict may establish a contribution, under the terms of their respective laws, to finance the public lighting service, with due regard for the provisions of article 150, i and iii . Sole paragraph. th e contribution mentioned in the head paragraph of this article may be charged to the consumer’s electricity bill.” a rticle 2. t his c onstitutional a mendment shall come into force on the date of its publication. b rasília, d ecember 19, 2002. THE DIRECTING BOARD OF THE CHAMBER OF DEPUTIES: Efraim Morais, pr esident – Barbosa Neto , se cond vi ce-pr esident – Severino Cavalcanti , fi rst se cretary – Nilton Capixaba , se cond se cretary – Paulo Rocha , th ird se cretary – Ciro Nogueira, f ourth s ecretary. THE DIRECTING BOARD OF THE FEDERAL SENATE: Ramez Tebet , pr esident – Edison Lobão , fi rst vi ce-pr esident – Antonio Carlos Valadares , se cond vi ce-pr esident – Carlos Wilson, f irst s ecretary – Mozarildo Cavalcanti , f ourth s ecretary. p ublished in the Official Journal , d ecember 20, 2002. miolo_constitution_versao_camara.indd 306 17/6/2010 15:01:14 Constitutional Amendments 307 Constitutional amen D ment n o. 40, 2003 Alters item V of article 163 and article 192 of the Federal Constitution, and the head paragraph of article 52 of the Temporary Constitutional Provisions Act. t he d irecting b oards of the c hamber of d eputies and of the f ederal s enate, under the terms of paragraph 3 of article 60 of the f ederal c onstitution, promulgate the following Amendment to the constitutional text: a rticle 1. i tem v of article 163 of the f ederal c onstitution shall henceforth read as follows: “ a rticle 163. ............................................................................ .................................................................................................. V – financial supervision of governmental entities and entities owned by the Federal Government; ................................................................................................ ” ar ticle 2. ar ticle 192 of the fe deral co nstitution shall henceforth read as follows: “Article 192. T he national financial system, structured to promote the balanced development of the country and to serve the collective interests, in all of the component elements of the system, including credit cooperatives, shall be regulated by supplementary laws which shall also provide for the participation of foreign capital in the institutions that make up the said system. I – (Revoked);II – (Revoked);III – (Revoked);a) (Revoked);b) (Revoked);IV – (Revoked);V – (Revoked);VI – (Revoked);VII – (Revoked);VIII – (Revoked).Paragraph 1. (Revoked). miolo_constitution_versao_camara.indd 307 17/6/2010 15:01:14 Constitution of the Federative Republic of Brazil 308 Paragraph 2. (Revoked). Paragraph 3. (Revoked).” ar ticle 3. th e head paragraph of article 52 of the te mporary co nstitutional Provisions Act shall henceforth read as follows: “ar ticle 52. un til such time as the conditions referred to in article 192 are established, the following are forbidden: ................................................................................................ ” a rticle 4. t his c onstitutional a mendment shall come into force on the date of its publication. b rasília, May 29, 2003. THE DIRECTING BOARD OF THE CHAMBER OF DEPUTIES: João Paulo Cunha , p resident – Inocêncio de Oliveira, f irst vice- p resident – Luiz Piauhylino , s econd vice- p resident – Geddel Vieira Lima, f irst s ecretary – Severino Cavalcanti , s econd s ecretary – Nilton Capixaba , t hird s ecretary – Ciro Nogueira, f ourth s ecretary. THE DIRECTING BOARD OF THE FEDERAL SENATE: José Sarney, p resident – Paulo Paim , fi rst vi ce-pr esident – Eduardo Siqueira Campos, se cond vi ce-pr esident – Romeu Tuma, f irst s ecretary – Alberto Silva, s econd s ecretary – Heráclito Fortes, t hird s ecretary – Sérgio Zambiasi, f ourth s ecretary. p ublished in the Official Journal , May 30, 2003. miolo_constitution_versao_camara.indd 308 17/6/2010 15:01:14 Constitutional Amendments 309 Constitutional amen D ment n o. 41, 2003 Alters articles 37, 40, 42, 48, 96, 149, and 201 of the Federal Constitution, revokes item IX of paragraph 3 of article 142 of the Federal Constitution and provisions of Constitutional Amendment no. 20, of December 15, 1998, and makes further provisions. t he d irecting b oards of the c hamber of d eputies and of the f ederal s enate, under the terms of paragraph 3 of article 60, of the f ederal c onstitution, promulgate the following Amendment to the constitutional text: a rticle 1. The Federal Constitution shall henceforth read as follows: “Article 37. .............................................................................. .................................................................................................. X i – the remuneration and the compensation of the holders of public offices, functions, and positions in governmental entities, associate government agencies, and foundations; of the members of any of the p owers of the u nion, of the s tates, the f ederal District, and the Municipalities; of the holders of elective offices, and of any other political agent, as well as the pay, pension, or other type of remuneration, earned on a cumulative basis or not, including advantages of a personal nature or of any other nature, may not be higher than the monthly compensation, in legal tender, of the Justices of the s upreme f ederal c ourt, and the following limits shall be applied: in Municipalities, the compensation of the Mayor; in the States and in the Federal di strict, the monthly compensation of the Governor in the sphere of the ex ecutive br anch, the compensation of st ate and f ederal d istrict d eputies in the sphere of the l egislative b ranch, and the compensation of the Judges of the s tate c ourt of Justice, limited to ninety and twenty-five hundredths percent of the monthly compensation, in legal tender, of the Justices of the s upreme f ederal c ourt in the sphere of the Judicial b ranch, this limit being applicable to the members of the Office of the p ublic i nterest a ttorney, to p rosecutors, and to p ublic l egal Defenders; ................................................................................................ ”“ ar ticle 40. em ployees holding effective posts in the un ion, the st ates, the fe deral di strict, and the Municipalities, therein included their associate government agencies and foundations, miolo_constitution_versao_camara.indd 309 17/6/2010 15:01:14 Constitution of the Federative Republic of Brazil 310 are ensured of a social security scheme on a contributory and solidary basis, with contributions from the respective public entity, from the current employees, retired personnel, and pensioners, with due regard for criteria that preserve financial and actuarial balance and for the provisions of this article. pa ragraph 1. th e employees covered by the social security scheme set forth in this article shall go into retirement, their pensions being calculated according to the amounts stipulated under the terms of paragraphs 3 and 17: i – for permanent disability, with a pension in proportion to the period of contribution, except when such disability results from a work-related injury, a professional disease, or a serious, contagious, or incurable illness, under the terms of the law; .................................................................................................. pa ragraph 3. th e calculation of the retirement pension, at the time retirement is granted, shall take into account the remunerations used as basis for the contributions of the employee to the social security schemes mentioned in this article and in article 201, under the terms of the law. ..................................................................................................Paragraph 7. T he law shall provide for the granting of the benefit of a death pension, which will be equal to: i – the total amount of the retirement pension of the deceased employee, up to the maximum limit established for the benefits of the general social security scheme referred to in article 201, increased by seventy percent of the amount in excess of this limit, if the employee had already retired on the date of his death; or ii – the total amount of the remuneration of the employee in the effective post he was holding on the date of his death, up to the maximum limit established for the benefits of the general social security scheme referred to in article 201, increased by seventy percent of the amount in excess of this limit, if the employee was in active service on the date of his death. Paragraph 8. R eadjustment of the benefits is ensured, to the end that their real value is permanently maintained, in accordance with criteria established by law. .................................................................................................. pa ragraph 15. th e complementary social security scheme referred to in paragraph 14 shall be instituted by an act of the respective e xecutive p ower, with due regard for the provisions of article 202 and its paragraphs, insofar as pertinent, through closed private pension plan companies, of a public nature, which miolo_constitution_versao_camara.indd 310 17/6/2010 15:01:14 Constitutional Amendments 311 will offer to their respective participants benefit plans exclusively in the defined contribution mode. ..................................................................................................Paragraph 17. All remuneration amounts taken into account in the calculation of the benefit set forth in paragraph 3 shall be duly updated, under the terms of the law. pa ragraph 18. a contribution shall be levied on retirement pensions and other pensions granted by the scheme referred to in this article if such pensions exceed the maximum limit established for the benefits of the general social security scheme mentioned in article 201, at a percentage equal to the one established for employees holding effective posts. p aragraph 19. e mployees referred to in this article who have fulfilled the requirements for voluntary retirement stipulated in paragraph 1, iii , a, and who choose to remain working shall be entitled to a continuous activity bonus equivalent to the amount of their social security contribution until such date as they fulfill the requirements for compulsory retirement set forth in paragraph 1, ii . pa ragraph 20. th e establishment of more than one special social security scheme for employees holding effective posts, and of more than one unit to manage the respective scheme in each state is forbidden, except for the provision of article 142, paragraph 3, X.” “ a rticle 42. .............................................................................. pa ragraph 2. th e provisions that may be established by a specific act of the respective state shall apply to the pensioners of the military of the s tates, of the f ederal d istrict, and of the territories.” “ a rticle 48. .............................................................................. Xv – stipulation of the compensation for the Justices of the su preme fe deral co urt, with due regard for articles 39, paragraph 4; 150, II; 153, III; and 153, paragraph 2, I.” “ a rticle 96. .............................................................................. ii – ........................................................................................... b) creation and abolishment of offices and the remuneration of the auxiliary services and of the courts connected with them, as well as the establishment of the compensation for their members and for the judges, including those of the lower courts, if existing; ................................................................................................ ” miolo_constitution_versao_camara.indd 311 17/6/2010 15:01:14 Constitution of the Federative Republic of Brazil 312 “article 149. ............................................................................ .................................................................................................. pa ragraph 1. th e states, the fe deral di strict, and the municipalities shall institute a contribution payable by their employees to fund the social security scheme referred to in article 40, for the benefit of such employees, and the respective rate may not be lower than the rate of the contribution paid by employees holding effective posts in the u nion. ................................................................................................ ” “ a rticle 201. ............................................................................ .................................................................................................. p aragraph 12. t he law shall provide for a special system to include low-income workers in the social security system, so that they have guaranteed access to benefits at an amount equal to a monthly minimum salary, except for retirement benefits due to contribution period.” ar ticle 2. W ith due regard for the provision of article 4 of Constitutional Amendment no. 20, de cember 15, 1998, the right to opt for voluntary retirement with pay calculated according to article 40, paragraphs 3 and 17, of the Federal Constitution, is ensured to employees who have properly taken effective posts in government services, associate government agencies, and foundations, before the date of publication of said Amendment, when such employees meet the following cumulative conditions: I – fifty-three years of age, if a man, and forty-eight, if a woman; II – five years of effective exercise in the post from which retirement takes place; III – a period of contribution equal to at least the sum of:a) thirty-five years, if a man, and thirty years, if a woman; and b) an additional period of contribution equivalent to twenty percent of the period which, at the date of publication of said a mendment, would still be necessary to reach the limit set forth in letter a of this item. p aragraph 1. t he employees mentioned in this article who meet the requirements for retirement under the terms of the head paragraph shall have their retirement pay reduced for each year their retirement is brought forward as regards the age limits established by article 40, paragraph 1, iii , a, and paragraph 5, of the f ederal Constitution, according to the following proportion: I – three and five tenths per cent, for employees who meet the requirements for retirement under the terms of the head paragraph by December 31, 2005; II – five per cent, for employees who meet the requirements for retirement under the terms of the head paragraph as from January 1, 2006. Paragraph 2. T he provisions of this article are applicable to judges and to members of the Office of the Public Interest Attorney and of audit courts. miolo_constitution_versao_camara.indd 312 17/6/2010 15:01:15 Constitutional Amendments 313 Paragraph 3. When the provisions of paragraph 2 of this article are applied, the period of service performed until the publication of c onstitutional a mendment no. 20, d ecember 15, 1998, shall be increased by the addition of seventeen percent for a judge or a member of the Office of the Public Interest Attorney and of audit courts, if a man. pa ragraph 4. th e period of service performed until the publication of c onstitutional a mendment no. 20, d ecember 15, 1998, shall be increased by the addition of seventeen percent, for a male teacher, and twenty percent, for a female teacher, who is an employee of the u nion, the s tates, the f ederal d istrict, and the Municipalities, including their associate government agencies and foundations, and who, until the date of publication of said Amendment, has properly taken an effective teaching post and opts to retire under the terms of the head paragraph, provided that such retirement is based exclusively on the period of effective exercise of a teaching function, with due regard for paragraph 1. pa ragraph 5. th e employee referred to in this article, who has met the requirements for voluntary retirement as set forth in the head paragraph and chooses to remain in active service, shall be entitled to a continuous activity bonus equivalent to the amount of his social security contribution until such date as he meets the requirements for compulsory retirement as set forth in article 40, paragraph 1, i i, of the fe deral co nstitution. pa ragraph 6. th e provisions of article 40, paragraph 8, of the fe deral co nstitution, shall apply to retirement pensions granted under the terms of this article. ar ticle 3. th e granting of retirement pensions to public employees, as well as pensions to their dependents, is ensured, at any time, if, by the date of publication of this a mendment, they have complied with the requirements to be entitled to such benefits, in accordance with the criteria of the legislation in ef fect at that time. p aragraph 1. t he employee referred to in this article, who chooses to remain in active service after having met the requirements for voluntary retirement, and who has, at least, twenty-five years of contribution, if a woman, or thirty years of contribution, if a man, shall be entitled to a continuous activity bonus equivalent to the amount of her or his social security contribution until such date as she or he meets the requirements for compulsory retirement as set forth in article 40, paragraph 1, ii , of the f ederal c onstitution. p aragraph 2. t he retirement pay to be granted to the public employees referred to in the head paragraph, either in full or in proportion to the period of contribution completed by the date of publication of this a mendment, as well as the pensions for their dependents, shall be calculated in accordance with the legislation in effect at the time the requirements therein contained for the granting of such benefits were met, or with the terms of the current legislation. ar ticle 4. re tired employees and pensioners of the un ion, the st ates, the fe deral di strict, and the Municipalities, including their associate government agencies and foundations, who are regularly receiving benefits on the date of publication of this am endment, as well as public employees covered by the provisions of its article 3, shall contribute to the funding of the scheme referred to in article 40 of the fe deral co nstitution at the same percentage stipulated for employees holding effective posts. miolo_constitution_versao_camara.indd 313 17/6/2010 15:01:15 Constitution of the Federative Republic of Brazil 314 Sole paragraph. th e social security contribution referred to in the head paragraph shall be levied only on the portion of the retirement pensions and other pensions which exceeds: I – fifty per cent of the maximum limit stipulated for the benefits of the general social security scheme referred to in article 201 of the f ederal c onstitution, for retired employees and pensioners of the st ates, the fe deral di strict, and the Municipalities; II – sixty per cent of the maximum limit for the benefits of the general social security scheme referred to in article 201 of the feder al c onstitution, for retired employees and pensioners of the u nion. ar ticle 5. T he maximum limit for the amount of benefits of the general social security scheme referred to in article 201 of the Federal Constitution is defined as R$ 2,400.00 (two thousand and four hundred reais), and it shall be adjusted, as from the date of publication of this am endment, to the end that its real value is permanently maintained and updated according to the same indices applicable to the benefits of the general social security scheme. a rticle 6. W ithout prejudice to the right to opt for retirement in accordance with the rules established by article 40 of the f ederal c onstitution or the rules established by article 2 of this a mendment, an employee of the u nion, the s tates, the f ederal d istrict, and the Municipalities, including their associate government agencies and foundations, who has entered public administration before the date of publication of this am endment may go into retirement with full pay, equivalent to the total remuneration of such employee in the effective post from which he retires, under the terms of the law, when, with due regard for the reductions on account of age and contribution period contained in paragraph 5 of article 40 of the f ederal c onstitution, such employee meets the following cumulative conditions: I – sixty years of age, if a man, and fifty-five years of age, if a woman; II – thirty-five years of contribution, if a man, and thirty years of contribution, if a woman; III – twenty years of effective exercise in public administration; and IV – ten years in the career and five years in the effective post from which retirement is going to take place. Sole paragraph. re tirement pensions granted as per this article shall be revised in the same proportion and on the same date, whenever the remuneration of employees in active service is changed, under the terms of the law, with due regard for article 37, XI, of the Federal Constitution. ar ticle 7. W ith due regard for the provision of article 37, XI, of the Federal co nstitution, retirement pensions of government employees who hold effective posts and the pensions for their dependents, paid by the un ion, the st ates, the fe deral di strict, and the Municipalities, including their associate government agencies and foundations, and being received on the date of publication of this am endment, as well as the retirement miolo_constitution_versao_camara.indd 314 17/6/2010 15:01:15 Constitutional Amendments 315 pensions of employees and the pensions for their dependents covered by article 3 of this am endment, shall be revised in the same proportion and on the same date, whenever the remuneration of employees in active service is altered, and any benefits or advantages subsequently granted to employees in active service shall also be extended to retirees and to pensioners, including those benefits and advantages arising from the transformation or reclassification of the post or function from which retirement was taken, or which was taken as a parameter for the granting of a pension, as the law provides. ar ticle 8. un til such time as the amount of the compensation referred to in article 37, item XI, of the Federal Constitution is stipulated, the amount of the highest remuneration assigned by law to a Justice of the su preme fe deral co urt on the date of publication of this am endment, on account of pay, monthly representation allowance, and sum received by virtue of period of service, shall be taken into consideration for the purposes of the limit stipulated in the said item X i, and the following limits shall be applied: in Municipalities, the compensation of the Mayor; in the States and in the fe deral di strict, the monthly compensation of the Governor in the sphere of the ex ecutive br anch, the compensation of st ate and fe deral di strict de puties in the sphere of the le gislative br anch, and the compensation of the Judges of the st ate co urt of Justice, limited to ninety and twenty-five hundredths percent of the highest monthly remuneration of a Justice of the su preme fe deral co urt referred to in this article in the sphere of the Judicial Branch, this limit being applicable to the members of the Office of the pu blic in terest at torney, to pr osecutors, and to pu blic le gal de fenders. a rticle 9. The provisions of article 17 of the Temporary Constitutional Provisions a ct shall apply to the pay, the remunerations, and the compensation of the holders of public offices, functions and positions in governmental entities, associate government agencies, and foundations; of the members of any of the Powers of the Union, of the States, the Federal District, and the Municipalities; of the holders of elective offices, and of any other political agent, as well as the retirement pay, pensions, or other type of remuneration, earned on a cumulative basis or not, including advantages of a personal nature or of any other nature. a rticle 10. i tem i X of paragraph 3 of article 142 of the f ederal c onstitution, as well as articles 8 and 10 of c onstitutional a mendment no. 20, d ecember 15, 1998, are hereby revoked. a rticle 11. t his a mendment shall come into force on the date of its publication. b rasília, d ecember 19, 2003. THE DIRECTING BOARD OF THE CHAMBER OF DEPUTIES: Deputy João Paulo Cunha, p resident – d eputy Inocêncio Oliveira, f irst vice-p resident – d eputy Luiz Pianhylino , se cond vi ce-pr esident – de puty Geddel Vieira Lima , fi rst se cretary – d eputy Severino Cavalcanti, s econd s ecretary – d eputy Nilton Capixaba, t hird s ecretary – d eputy Ciro Nogueira, f ourth s ecretary. THE DIRECTING BOARD OF THE FEDERAL SENATE: Senator José Sarney, p resident – s enator Paulo Paim, f irst vice- p resident – s enator Eduardo Siqueira miolo_constitution_versao_camara.indd 315 17/6/2010 15:01:15 Constitution of the Federative Republic of Brazil 316 Campos, s econd vice- p resident – s enator Romeu Tuma, f irst s ecretary – s enator Alberto Silva , se cond se cretary – se nator Heráclito Fortes , th ird se cretary – se nator Sérgio Zambiasi, f ourth s ecretary. p ublished in the Official Journal , d ecember 31, 2003. miolo_constitution_versao_camara.indd 316 17/6/2010 15:01:15 Constitutional Amendments 317 Constitutional amen D ment n o. 42, 2003 Alters the National Tax System and makes further provisions. t he d irecting b oards of the c hamber of d eputies and of the f ederal s enate, under the terms of paragraph 3 of article 60, of the f ederal c onstitution, promulgate the following Amendment to the constitutional text: ar ticle 1. th e following articles of the co nstitution shall henceforth read as follows: “Article 37. .............................................................................. .................................................................................................. XX ii – the tax administrations of the u nion, of the s tates, the f ederal d istrict, and the Municipalities, whose activities are essential for the operation of the st ate and are exercised by employees of specific careers, shall have priority funds for the implementation of their activities and shall work in an integrated manner, including the sharing of tax rolls and fiscal information, under the terms of the law or of a covenant. ................................................................................................ ”“ a rticle 52. .............................................................................. ..................................................................................................X v – to carry out a regular assessment of the functionality of the na tional ta x sy stem, as regards its structure and components, as well as the performance of the tax administrations of the u nion, of the s tates, the f ederal d istrict, and the Municipalities. ................................................................................................ ”“ a rticle 146. ............................................................................ .................................................................................................. iii – .......................................................................................... d) the definition of a differentiated and favorable tax treatment to be given to micro and small businesses, including special or simplified tax regimes in the case of the tax set forth in article 155, i i, the contributions set forth in article 195, i, and paragraphs 12 and 13, and the contribution referred to in article 239. Sole paragraph. th e supplementary law referred to in item i ii, d, may also establish a single regime for the collection miolo_constitution_versao_camara.indd 317 17/6/2010 15:01:15 Constitution of the Federative Republic of Brazil 318 of taxes and contributions owed to the u nion, the s tates, the fe deral di strict, and the Municipalities, with due regard for the following: I – it shall be optional for the taxpayer; ii – different eligibility requirements may be established for each State;III – payment of said tributes shall be unified and centralized, and the distribution of the share of funds belonging to the respective units of the fe deration shall be immediate, any withholding or establishment of conditions being forbidden; i v – collection, control, and claiming of payment may be shared by the units of the fe deration, a single national roster of taxpayers being adopted.” “ar ticle 146- a. a supplementary law may establish special criteria for taxation, with a view to preventing imbalances in competition, without prejudice to the power of the Federal Government to establish, by law, rules for the same purpose.” “ a rticle 149. ............................................................................ .................................................................................................. p aragraph 2. ........................................................................... ii – shall be also levied on the importation of foreign products or services; ................................................................................................ ”“ a rticle 150. ............................................................................ .................................................................................................. iii – .......................................................................................... c ) within the period of ninety days as from the date of publication of the law which instituted or raised such tributes, with due regard for the provision of letter b; .................................................................................................. p aragraph 1. t he prohibition set forth in item iii , b, shall not apply to the taxes provided upon in articles 148, i , 153, i , ii , IV , and V; and 154, II; and the prohibition set forth in item III, c, shall not apply to the taxes provided upon in articles 148, i , 153, I, II, III, and V; and 154, II, nor to the stipulation of the assessment basis of the taxes provided upon in articles 155, iii , and 156, i . ................................................................................................ ” “ a rticle 153. ............................................................................ .................................................................................................. miolo_constitution_versao_camara.indd 318 17/6/2010 15:01:15 Constitutional Amendments 319 paragraph 3. ........................................................................... iv – shall have its impact reduced, as set forth by law, in the case of purchase of capital goods by a taxpayer who is liable to pay such tax. pa ragraph 4. th e tax established in item v i of the head paragraph: i – shall be progressive and its rates shall be determined in such a manner as to discourage the retention of unproductive real property; II – shall not be levied on small tracts of land, as defined in law, when a proprietor who owns no other real property exploits them; i ii – shall be controlled and collected by the Municipalities which opt to do so, under the terms of the law, provided that they do not reduce this tax or introduce any other type of fiscal waiver. ................................................................................................ ”“ a rticle 155. ............................................................................ .................................................................................................. p aragraph 2. ........................................................................... X – ........................................................................................... a) on transactions involving goods to be shipped abroad, nor on services to be delivered to parties abroad, and tax charges and credits in preceding transactions involving such goods or services shall continue in effect; ..................................................................................................d) on communications services in the modes of sound broadcasting and sound and image broadcasting which are available for reception by the public free of charge; ..................................................................................................Paragraph 6. The tax established in item III: i – shall have its minimum rates stipulated by the fe deral Senate; i i – may have different rates according to type and utilization.”“ a rticle 158. ............................................................................ ..................................................................................................I I – fifty per cent of the proceeds from the collection of the federal tax on rural property, concerning real property located in the miolo_constitution_versao_camara.indd 319 17/6/2010 15:01:15 Constitution of the Federative Republic of Brazil 320 municipalities, or one hundred per cent of such proceeds in the case of the option referred to in article 153, paragraph 4, III; ................................................................................................ ”“ a rticle 159. ............................................................................ .................................................................................................. iii – of the proceeds from the collection of the contribution for intervention in the economic domain set forth in article 177, paragraph 4, twenty-five per cent to the States and to the Federal d istrict, distributed in accordance with the law, with due regard for the allocation referred to in item ii , c, of said paragraph. .................................................................................................. Paragraph 4. T wenty-five per cent of the amount of monies referred to in item i ii and allocated to each st ate shall be assigned to its Municipalities, in accordance with the law referred to in said item.” “Article 167. ............................................................................ .................................................................................................. i v – to bind tax revenues to an agency, fund or expense, excepting the sharing of the proceeds from the collection of the taxes referred to in articles 158 and 159, the allocation of funds for public health actions and services, for the maintenance and development of education, and for the implementation of tax administration activities, as determined, respectively, in article 198, paragraph 2, article 212, and article 37, item XXII, and the granting of guarantees on credit transactions by advance of revenues, as established in article 165, paragraph 8, as well as in paragraph 4 of the present article; ................................................................................................ ”“Article 170. ............................................................................ .................................................................................................. vi – environment protection, which may include differentiated treatment in accordance with the environmental impact of goods and services and of their respective production and delivery processes; ................................................................................................ ”“ a rticle 195. . ........................................................................... .................................................................................................. iv – of importers of goods or services from other countries, or of other parties defined by law as being comparable to such importers. miolo_constitution_versao_camara.indd 320 17/6/2010 15:01:15 Constitutional Amendments 321 .................................................................................................. Paragraph 12. T he law shall define the sectors of economic activity for which the contributions stipulated under the terms of items i, b; and IV of the head paragraph, shall be non- cumulative. p aragraph 13. t he provision of paragraph 12 shall also apply in the case of gradual replacement, either total ou partial, of the contribution stipulated under the terms of item i , a, by the contribution due on income or revenues.” “ a rticle 204. ............................................................................ ..................................................................................................S ole paragraph. th e st ates and the fe deral di strict may assign up to five tenths per cent of their net tax revenues to programs to support social inclusion and promotion, the utilization of such funds for the payment of the following items being forbidden: I – personnel expenses and social charges;II – debt servicing; i ii – any other current expense not directly related to the investments or actions supported by said programs.”“ a rticle 216. ............................................................................ .................................................................................................. p aragraph 6. t he s tates and the f ederal d istrict may assign up to five tenths per cent of their net tax revenues to a state fund for the promotion of culture, for the purpose of funding cultural programs and projects, the utilization of such funds for the payment of the following items being forbidden: I – personnel expenses and social charges;II – debt servicing; i ii – any other current expense not directly related to the investments or actions supported by said programs.” a rticle 2. t he following articles of the temporary c onstitutional p rovisions a ct shall henceforth read as follows: “Article 76. T wenty percent of the proceeds from the collection by the un ion of taxes, social contributions, and contributions for intervention in the economic domain, already instituted or to be instituted in the period of 2003 to 2007, as well as their additional taxes and respective legal increases, shall not be earmarked to any agency, fund, or expense in the said period. pa ragraph 1. th e provision of the head paragraph of this article shall not reduce the assessment basis of the transfers to the st ates, miolo_constitution_versao_camara.indd 321 17/6/2010 15:01:15 Constitution of the Federative Republic of Brazil 322 the f ederal d istrict, and the Municipalities under the terms of articles 153, paragraph 5; 157, item I; 158, items I and II; and 159, item i , letters a and b; and item II, of the Constitution, neither the assessment basis of the remittances mentioned in article 159, i , c, of the c onstitution. ................................................................................................ ” “ a rticle 82. .............................................................................. ..................................................................................................Paragraph 1. W ith a view to financing the State Funds and the fe deral di strict fu nd, an additional tax of up to two percent may be created, to raise the rate of the s tate v at [ ic M s ], due on luxury goods and services and observing the conditions defined in the supplementary law referred to in article 155, paragraph 2, X ii , of the c onstitution, and the provision of article 158, iv, of the c onstitution shall not be applicable to such percentage. ................................................................................................ ” “Article 83. A federal law shall define the luxury goods and services referred to in articles 80, item i i, and 82, paragraph 2.” a rticle 3. t he temporary c onstitutional p rovisions a ct shall henceforth include the following articles: “ a rticle 90. t he time limit set forth in the head paragraph of