On April 29, 2016, Interpretative Declaratory Act RFB ("ADI") No. 03/2016 was published in the Official Gazette, where it outlined the effects of Sections 1 and 2 of Law No. 13,259/2016 which resulted from the conversion of the Law of Provisional Measure No. 692/2015. Pursuant to Section 1 of the ADI, the changes introduced in the tax legislation by Law No. 13,259/2016 will enter into force on January 1, 2017, in compliance with the provisions of Section 62, paragraph 2 of the Federal Constitution.
Consequently, it is clear that the Brazilian Internal Revenue Service understands that, in respect to the so-called "anteriority principle", the progressive rates for income tax levied on the capital gain can only apply to taxable events that occur after January 1st, 2017.
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Founded in 2001, Tauil & Chequer Advogados is a full service law firm with approximately 90 lawyers and offices in Rio de Janeiro, São Paulo and Vitória. T&C represents local and international businesses on their domestic and cross-border activities and offers clients the full range of legal services including: corporate and M&A; debt and equity capital markets; banking and finance; employment and benefits; environmental; intellectual property; litigation and dispute resolution; restructuring, bankruptcy and insolvency; tax; and real estate. The firm has a particularly strong and longstanding presence in the energy, oil and gas and infrastructure industries as well as with pension and investment funds. In December 2009, T&C entered into an agreement to operate in association with Mayer Brown LLP and become "Tauil & Chequer Advogados in association with Mayer Brown LLP."
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