In May 20th, Decree 8.451/2014 was published, reducing to zero the PIS and COFINS tax rate on financial revenues by exchange rate, annulling the decision of April that reestablished those tax rates to 0,65% and 4% from July 1st, 2014 onwards.

Thus, financial revenues from export products and services, the operations of "hedge" and the exchange rate of loans and debts in foreign currency remain with zero tax rates.

The decree also allows the companies to change the tax payment system, from cash basis to accrual basis and vice versa, within the following month in which the exchange rate is over 10%.

However, there is an exception for 2015. If the exchange rate variation exceeds 10% between January and May, companies may change the tax payment system in June. Nevertheless, if a company changes the system, it should remain in the chosen system until the end of the year, unless exchange rates vary 10% in some month.

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