Article 70 of the Constitution of Brazil

is defined in the State Constitution, as established in article 125, paragraph 1, of the c onstitution. a rticle 71. The Emergency Social Fund is hereby instituted for the fiscal years of 1994 and 1995, as well as for the periods from January 1, 1996 through June 30, 1997, and from July 1, 1997 through December 31, 1999, aiming at the financial recuperation of the Federal Public Finances and the economic stabilization, the resources of which shall be applied primarily to the actions of the health and education systems, including the supplementation of resources set forth in paragraph 3 of article 60 of the Temporary Constitutional Provisions Act, the welfare benefits and welfare assistance of a permanent nature, including the payment of welfare debts and budgetary expenditures associated to programs of great economic and social interest. ( rca n o. 1, 1994; CA No. 10, 1996; CA No. 17, 1997) Paragraph 1. The provision of the final part of item II of paragraph 9 of article 165 of the c onstitution shall not apply to the f und established by this article. Paragraph 2. From the beginning of the 1996 fiscal year on, the Fund established by this article shall be called Fiscal Stabilization Fund. p aragraph 3. t he e xecutive p ower shall publish, on a bimonthly basis, a budget execution statement, which statement shall list the sources and applications of the f und established by this article. a rticle 72. The Emergency Social Fund is comprised of: (RCA No. 1, 1994; CA No. 10, 1996; CA No. 17, 1997) i – the proceeds from the collection of the tax on income and earnings of any nature to be levied at source on payments of any nature effected by the u nion, including its autonomous government agencies and foundations; ii – the part of the proceeds from the collection of the tax on income and earnings of any nature, and of the tax on credit, foreign exchange and insurance transactions, or transactions relating to bonds and securities, resulting from the changes generated by l aw 8,894 of June 21, 1994, and by l aws 8,849 and 8,848, both dated January 28, 1994 and further modifications; iii – the part of the proceeds from the collection due to the increase of the rate of welfare contribution on the profit of taxpayers mentioned in paragraph 1 of article 22 of Law 8,212 of July 24, 1991, which, in the fiscal years of 1994 and 1995, as well as in the period from January 1, 1996 through June 30, 1997, shall be of 30 percent, subject to modification by ordinary law, the other stipulations of Law 7,869 of December 15, 1988 remaining unchanged; i v – twenty percent of the proceeds from the collection of all taxes and contributions to the un ion, already instituted or to be instituted, except those provided by items I, II and III, with due regard to the provisions of paragraphs 3 and 4; v – the part of the proceeds from the collection of the contribution mentioned in Supplementary Law no. 7, of September 7, 1970, owed by the juridical entities referred to in item III of this article, which will be calculated, in the fiscal years of miolo_constitution_versao_camara.indd 185 17/6/2010 15:01:08 Constitution of the Federative Republic of Brazil 186 1994 and 1995, as well as in the periods from January 1, 1996 through June 30, 1997, and from July 1, 1997 through December 31, 1999, through the employment of a rate of seventy-five hundredths of one percent, subject to modification by subsequent ordinary law, on the gross operating income, as defined in the legislation of income tax and earnings of any nature; VI – other incomes defined in specific legislation. Paragraph 1. T he rates and calculation base defined in items III and V shall be applied as from the first day of the month following the ninetieth day after the promulgation of this a mendment17. pa ragraph 2. th e parts referred to in items i, i i, i ii and v shall be previously deducted from the calculation base of any legal or constitutional designation or participation, and the provisions of articles 159, 212 and 239 of the co nstitution shall not apply to them. pa ragraph 3. th e part referred to in item i v shall be previously deducted from the calculation base of any constitutional or legal designation or participation stipulated by articles 153, paragraph 5, 157, II, 212 and 239 of the Constitution. pa ragraph 4. th e provision of the former paragraph shall not apply to the resources provided by articles 158, ii and 159 of the c onstitution. p aragraph 5. t he part of the resources originating from the tax on income and earnings of any nature, designated for the e mergency s ocial f und, as provided by item II of this article, shall not exceed five and six-tenths of one percent of the total proceeds from its collection. ar ticle 73. in the regulation of the em ergency so cial fu nd, the instrument provided by item v of article 59 of the c onstitution may not be applied. ( rca n o. 1, 1994) ar ticle 74. th e un ion may establish provisional contribution on the movement or transmission of monies and of credits and rights of financial nature. (CA No. 12, 1996) pa ragraph 1. th e rate of the contribution mentioned in this article shall not exceed twenty-five hundredths of one percent, and the Executive Power may reduce it or reestablish it, in whole or in part, in the conditions and limits provided for by law. pa ragraph 2. th e provisions of articles 153, paragraph 5, and 154, i, of the c onstitution shall not apply to the contribution mentioned in this article. p aragraph 3. t he whole of the proceeds from the collection of the contribution mentioned in this article shall be allocated to the n ational h ealth f oundation for the financing of health actions and services. p aragraph 4. t he liability for the contribution mentioned in this article shall be governed by the provisions of article 195, paragraph 6, of the c onstitution, and it shall not be collected for longer than two years. ar ticle 75. th e collection of the provisional contribution on the movement or transmission of monies and of credits and rights of financial nature mentioned in article 74, established by Law no. 9,311, of October 24, 1996, is extended for thirty-six 17 should read as “ revision constitutional a mendment no. 1/1994”. miolo_constitution_versao_camara.indd 186 17/6/2010 15:01:08 Temporary Constitutional Provisions Act 187 months, and the same extension applies to the effect of l aw no. 9,539, of d ecember 12, 1997, which modified Law no. 9,311. (CA No. 21, 1999) Paragraph 1. W ith due regard for paragraph 6 of article 195 of the Federal co nstitution, the rate of the contribution shall be thirty-eight hundredths of one percent, in the first twelve months, and thirty hundredths in the subsequent months, and the e xecutive p ower may reduce it, in whole or in part, in the limits hereby stipulated. pa ragraph 2. th e proceeds from increased collection of the contribution, resulting from the alteration of the rate, during the financial years of 1999, 2000, and 2001, shall be allocated to the financing of social security. Paragraph 3. T he Union is authorized to issue domestic public debt bonds, whose resources shall be allocated to the financing of health services and social security, in an amount equivalent to the proceeds of the collection of the contribution, estimated but not achieved in 1999. a rticle 76. twenty percent of the proceeds from the collection by the u nion of taxes, social contributions, and contributions for intervention in the economic domain, already instituted or that may be instituted by d ecember 31, 2011, as well as their additional taxes and respective legal increases, shall not be earmarked to any agency, fund, or expense in the said period. (CA No. 27, 2000; CA No. 42, 2003; CA No. 56, 2007; CA No. 59, 2009) 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, the fe deral di strict, 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 co nstitution. pa ragraph 2. th e proceeds from the collection of the social contribution for education mentioned in article 212, paragraph 5, of the co nstitution, shall be excepted from the provision of the head paragraph of this article. pa ragraph 3. fo r purposes of calculating the funds for maintenance and development of education referred to in ar ticle 212 of the co nstitution, the percentage mentioned in the head paragraph of this article shall be 12.5% (twelve and five tenths percent) in fiscal year 2009, 5% (five percent) in fiscal year 2010, and zero in fiscal year 2011. a rticle 77. Until the financial year of 2004, the minimum amount of funds applied to health actions and public services shall be equivalent to: (CA No. 29, 2000) I – in the case of the Union: a) in the year 2000, the amount of checks issued to health actions and public services during the financial year of 1999, plus at least five percent; b) from the year 2001 through the year 2004, the amount expended in the previous year, restated according to the nominal changes of the Gross Domestic Product – GDP; ii – in the case of the s tates and of the f ederal d istrict, twelve percent of the proceeds from the collection of the taxes referred to in article 155 and of the funds miolo_constitution_versao_camara.indd 187 17/6/2010 15:01:08 Constitution of the Federative Republic of Brazil 188 mentioned in articles 157 and 159, item I, subitem a, and item ii , after deducting the portions transferred to the respective Municipalities; III – in the case of the Municipalities and of the Federal District, fifteen percent of the proceeds from the collection of the taxes mentioned in article 156 and of the funds mentioned in articles 158 and 159, item i , subitem b, and paragraph 3. p aragraph 1. t he s tates, the f ederal d istrict, and the Municipalities which apply percentages lower than those stipulated in items ii and iii shall raise them gradually, until the financial year of 2004, the difference being reduced at the rate of at least one fifth per year, and the application shall consist of at least seven percent as of the year 2000. Paragraph 2. A t least fifteen percent of the funds of the Union expended under the terms of this article shall be applied in the Municipalities, according to the populational criterion, to health actions and public services, in accordance with the law. p aragraph 3. t he funds of the s tates, the f ederal d istrict, and the Municipalities assigned for health actions and public services, as well as those transferred by the u nion for the same purpose, shall be applied by means of the h ealth f und, to be monitored and supervised by the Health Board, without prejudice to the provisions of article 74 of the Federal Constitution. p aragraph 4. i n the absence of the supplementary law referred to in article 198, paragraph 3, the provisions of this article shall apply to the u nion, the s tates, the Federal District, and the Municipalities as of the financial year of 2005. ar ticle 78. W ith the exception of credits defined by law as being of a small amount, credits for alimony, and credits stated in article 33 of this temporary c onstitutional p rovisions a ct and their supplementations, as well as those credits whose respective funds have already been released or paid into court, the court order debts for which payment is outstanding on the date of promulgation of this a mendment18 and those deriving from actions commenced before or on d ecember 31, 1999, shall be settled according to their real value, in legal tender, including legal interests, in equal and successive annual installments, within ten years at the most, the assignment of credits being permitted. ( ca n o. 30, 2000) p aragraph 1. t he division of installments is permitted, at the discretion of the creditor. pa ragraph 2. in the event the annual installments referred to in the head paragraph of this article have not been paid before the end of the relevant fiscal year, they shall be deducted from the taxes owed to the debtor entity. p aragraph 3. t he period of time referred to in the head paragraph of this article is reduced to two years, in the case of court order debts deriving from the expropriation of a creditor’s residential property, provided that such property is proven to be the creditor’s only residential property at the time of emission of a writ of ejectment. pa ragraph 4. if the time limit has elapsed, or in the case of omission in the budget, or in the event the right of precedence is not respected, the pr esident of the appropriate 18 should read as “ constitutional a mendment no. 30/2000”. miolo_constitution_versao_camara.indd 188 17/6/2010 15:01:08 Temporary Constitutional Provisions Act 189 Court shall, upon petition of a creditor, requisition or order the seizure of funds of the debtor entity, at an amount sufficient to pay the installment. a rticle 79. t he f und to f ight and e radicate p overty, hereby instituted within the sphere of the fed eral e xecutive br anch, shall be in force through the year 2010 and shall be regulated by a supplementary law, aiming at enabling all Brazilians to have access to adequate subsistence levels, and its resources shall be applied to supplementary initiatives regarding nutrition, housing, education, health, a complementary family income, and other programs of relevant social interest oriented towards the improvement of the quality of life. ( ca n o. 31, 2000) Sole paragraph. t he f und set forth in this article shall have an a dvisory and Monitoring b oard that must include representatives of civil society, under the terms of the law. a rticle 80. The Fund to Fight and Eradicate Poverty is comprised of: (CA No. 31, 2000) i – the part of the proceeds from the collection corresponding to additional eight hundredths of one percent, applicable from June 18, 2000, through June 17, 2002, to the rate of the social contribution referred to in article 75 of the Temporary Constitutional Provisions Act; II – the part of the proceeds from the collection corresponding to additional five percent on the rate of the federal v at [ ipi ], or of the tax that may eventually replace it, levied on luxury goods and applicable while the Fund is in force; iii – the proceeds from the collection of the tax referred to in article 153, item VII, of the Constitution; IV – budgetary appropriations; v – donations, of any nature, by individuals or corporations established in Brazil or abroad; VI – other revenues, to be defined by the legislation that regulates the Fund. Paragraph 1. The provisions of articles 159 and 167, item IV , of the Constitution, are not applicable to the resources that make up the Fund, neither is any disconnection of budgetary resources. p aragraph 2. t he proceeds from the collection of the resources referred to in item i of this article, during the period from June 18, 2000 through the date the supplementary law mentioned in article 79 becomes effective, shall be remitted in full to the f und, their real value being preserved, in federal government securities, progressively redeemable after June 18, 2002, under the terms of the law. a rticle 81. a f und is hereby instituted, to be comprised of the resources received by the fe deral Government as a result of divestiture of government-controlled corporations and public entreprises controlled either directly or indirectly by the f ederal Government, when such operation involves the divestment of the respective controlling interest to an individual or entity not belonging to the government bodies, or of any remaining equity interest following such divestment, and the income thereof, miolo_constitution_versao_camara.indd 189 17/6/2010 15:01:08 Constitution of the Federative Republic of Brazil 190 generated as from June 18, 2002, shall be transferred to the fu nd to fi ght and er adicate p overty. ( ca n o. 31, 2000) p aragraph 1. i n case the yearly amount of income to be transferred to the f und to f ight and e radicate p overty, as set forth in this article, does not add up to the total of four billion reais, it shall be supplemented according to article 80, item iv, of the temporary c onstitutional p rovisions a ct. Paragraph 2. W ithout prejudice to the provision of paragraph 1, the Executive b ranch may allocate other revenues deriving from the sale of f ederal Government assets to the f und mentioned in this article. Paragraph 3. T he resources that make up the Fund referred to in the head paragraph of this article, the transfer of said resources to the fu nd to fi ght and er adicate po verty, and the other provisions concerning paragraph 1 of this article shall be regulated by law, and the provision of article 165, paragraph 9, item ii of the c onstitution shall not be applicable. a rticle 82. t he s tates, the f ederal d istrict, and the Municipalities shall institute f unds to f ight p overty, comprised of the resources referred to in this article and other resources that may eventually be allocated for this purpose, and the said f unds shall be managed by entities which include the participation of civil society. ( ca n o. 31, 2000; CA No. 42, 2003) Paragraph 1. W ith a view to financing the State Funds and the Federal District f und, 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, XII, of the c onstitution, and the provision of article 158, iv, of the c onstitution shall not be applicable to such percentage. Paragraph 2. W ith a view to financing the Municipal Funds, an additional tax of up to half of one percent may be created, to raise the rate of the local service tax [ i ss] , or the rate of the tax that may eventually replace it, levied on luxury services. a rticle 83. A federal law shall define the luxury goods and services referred to in articles 80, item ii , and 82, paragraph 2. ( ca n o. 42, 2003) ar ticle 84. th e provisional contribution on the movement or transmission of monies and of credits and rights of a financial nature, set forth in articles 74, 75, and 80, I, of this temporary c onstitutional p rovisions a ct, shall be collected through d ecember 31, 2004. (CA No. 37, 2002; CA No. 42, 2003) p aragraph 1. t he effect of l aw no. 9,311, of o ctober 24, 1996, as well as of its alterations, is hereby extended through the date mentioned in the head paragraph of this article. pa ragraph 2. of the proceeds from collection of the social contribution mentioned in this article, the portion corresponding to the following rates shall be allocated to the purposes herein stated: I – twenty hundredths percent to the National Health Fund, for the financing of health actions and services; miolo_constitution_versao_camara.indd 190 17/6/2010 15:01:08 Temporary Constitutional Provisions Act 191 II – ten hundredths percent to the financing of social security; iii – eight hundredths percent to the f und to f ight and e radicate p overty, set forth in articles 80 and 81 of this temporary c onstitutional p rovisions a ct. p aragraph 3. t he rate of the contribution mentioned in this article shall be equal to: I – thirty-eight hundredths percent in the financial years of 2002 and 2003; II – (revoked). ar ticle 85. th e contribution mentioned in article 84 of this te mporary co nstitutional p rovisions a ct shall not be levied, as from the thirtieth day after the publication of this Constitutional Amendment, on entries concerning: (CA No. 37, 2002) i – current deposit accounts especially opened and exclusively used for transactions carried out by: a) clearinghouses and providers of clearing and settlement services referred to in article 2, sole paragraph, of Law no. 10,214, of March 27, 2001; b) securitization companies referred to in Law no. 9,514, of November 20, 1997; c) business corporations whose exclusive purpose is to purchase credits originating from transactions carried out in the financial market; II – current deposit accounts, when such entries are related to:a) stock purchase and sale transactions, effected within stock exchange trading floors or electronic systems, and in the organized over-the-counter market; b) contracts written on stocks or stock indices, in their various modes, negotiated in stock exchanges, commodities and futures exchanges; III – foreign investors’ accounts, regarding entries into and remittances from Brazil of funds employed exclusively in transactions and contracts referred to in item ii of this article. p aragraph 1. t he e xecutive b ranch shall regulate the provisions of this article within thirty days as of the date of publication of this c onstitutional a mendment19. p aragraph 2. t he provisions of item i of this article apply only to the transactions specified in an act issued by the Executive Branch, from among the transactions that constitute the purpose of said entities. p aragraph 3. t he provisions of item ii of this article apply only to transactions and contracts effected through financial institutions, securities brokerage houses, securities distribution companies, and commodities brokerage houses. ar ticle 86. de bts that must be paid by the fe deral, st ate, fe deral di strict, or Municipal Tax Authorities by virtue of final and unappealable judicial decisions shall be paid in accordance with the provisions of article 100 of the f ederal c onstitution, the parceling rule established in the head paragraph of article 78 of this Temporary 19 Should read as “Constitutional Amendment no. 37/2002”. miolo_constitution_versao_camara.indd 191 17/6/2010 15:01:08 Constitution of the Federative Republic of Brazil 192 constitutional p rovisions a ct not being applicable, if such debts meet the following cumulative conditions: (CA No. 37, 2002) I – having been the subject of a court order; II – having been defined as small amount debts by the law referred to in paragraph 3 of article 100 of the Federal Constitution, or by article 87 of this Temporary Constitutional Provisions Act; i ii – their payment being outstanding, in whole or in part, on the date of publication of this c onstitutional a mendment20. p aragraph 1. t he debts referred to in the head paragraph of this article, or their respective balances, shall be paid in chronological order of presentation of the respective court orders, with precedence over debts of a higher amount. p aragraph 2. i f the debts referred to in the head paragraph of this article have not been subject to partial payment yet, under the terms of article 78 of this Temporary c onstitutional p rovisions a ct, they may be paid in two annual installments, as the law provides. p aragraph 3. t he payment of the alimony debts referred to in this article, with due respect for the chronological order of their presentation, shall take precedence over the payment of all other debts. a rticle 87. f or purposes of the provisions set forth in paragraph 3 of article 100 of the Federal Constitution, and in article 78 of this Temporary Constitutional Provisions Act, 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 Federal Constitution, if their amount is equal to or lesser than: (CA No. 37, 2002) i – forty minimum monthly wages, in the case of debts owed by the ta x 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: (CA No. 37, 2002) i – have a minimum rate of two percent, save for the services referred to in items 32, 33, and 34 of the l ist of s ervices appended to d ecree- l aw no. 406, of December 31, 1968; 20 Should read as “Constitutional Amendment no. 37/2002”. miolo_constitution_versao_camara.indd 192 17/6/2010 15:01:08 Temporary Constitutional Provisions Act 193 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 . ar ticle 89. th e members of the uniformed police force and local administration employees of the former Federal Territory of Rondônia, who, in accordance with official documents, were regularly exercising their functions and rendering services to such former te rritory at the time it was transformed into a st ate, as well as the employees and uniformed police officers covered by the provisions of article 36 of Supplementary la w no. 41, de cember 22, 1981, and those who were legally included in the ro ndônia State Government personnel up until March 15, 1987, that is, the date the first elected governor took office, shall be included, at their option, 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 shall be forbidden. (CA No. 38, 2002; CA No. 60, 2009) pa ragraph 1. th e members of the uniformed police force shall continue rendering services to the State of Rondônia, in the quality of detailed personnel, subject to their respective uniformed police forces, with due regard for the compatibility between the duties of their function and their rank in the hierarchy. p aragraph 2. t he employees referred to in the head paragraph shall continue rendering services to the s tate of r ondônia, in the quality of detailed personnel, up until they are placed in a federal government entity, associate government agency, or foundation. ar ticle 90. th e time limit set forth in the head paragraph of article 84 of this temporary c onstitutional p rovisions a ct is hereby extended through d ecember 31, 2007. (CA No. 42, 2003) p aragraph 1. t he effect of l aw no. 9,311, of o ctober 24, 1996, as well as of its alterations, is hereby extended through the date mentioned in the head paragraph of this article. pa ragraph 2. th e rate of the contribution referred to in article 84 of this te mporary co nstitutional pr ovisions ac t shall be equal to thirty-eight hundredths per cent through the date referred to in the head paragraph of this article. ar ticle 91. th e un ion shall remit to the st ates and to the fe deral di strict the amount defined by a supplementary law, in accordance with the criteria, time limits, and terms therein determined, taking into consideration exports of primary commodities and semi-manufactured products to other countries, the import-export ratio, credits deriving from purchases intended for the permanent assets, and the effective maintenance and utilization of the tax credits referred to in article 155, paragraph 2, X, a. ( ca n o. 42, 2003) Paragraph 1. As to the amount of funds to be remitted to each State, seventy-five percent of such amount shall be assigned to the State itself, and twenty-five percent to its Municipalities, such percentage being distributed in accordance with the criteria referred to in article 158, sole paragraph, of the c onstitution. miolo_constitution_versao_camara.indd 193 17/6/2010 15:01:09 Constitution of the Federative Republic of Brazil 194 paragraph 2. the remittance of funds set forth in this article shall prevail, as defined in a supplementary law, until such time as the proceeds from the collection of the tax referred to in article 155, ii , are predominantly assigned, in a proportion not below eighty per cent, to the s tate where consumption of the products, goods, or services takes place. p aragraph 3. u ntil such time as the supplementary law referred to in the head paragraph is enacted, and so as to replace the system of remittance of funds set forth therein, there shall remain in force the system of remittance of funds set forth in article 31 and Schedule of Supplementary Law no. 87, of September 13, 1996, with the wording provided by s upplementary l aw no. 115, of d ecember 26, 2002. pa ragraph 4. th e st ates and the fe deral di strict shall present to the fe deral Government, under the terms of instructions issued by the fi nance Ministry, information regarding the tax referred to in article 155, ii , supplied by the taxpayers who carry out transactions involving goods to be shipped abroad or services to be delivered to foreign parties. a rticle 92. a period of ten years shall be added to the period of time set forth in