Important changes included in the Law as compared to the original text of the Provisional Measure are the following:
- Interest on related party loans, even if duly registered with the Brazilian Central Bank, will be deductible only up to an interest rate equal to the LIBOR dollar rate for six-month loans plus a 3% annual spread. Ministry of Finance can reduce this percentage or restate it. This limitation to the LIBOR plus 3% spread is a significant change from the original text of the Provisional Measure which provided that the spread would be annually determined by the Ministry of Finance based on an average market rate.
- In the case of the newly introduced methods for commodities, it was determined that for transactions involving products that do not have a quote in the exchange market, the taxpayer may choose to test the transactions using information obtained from independent sources, provided by internationally recognized institutes involved in researches of specific sectors; in the case of exports, the prices can also be tested based on prices informed by regulatory agencies.