Reduction Of Social Security Contributions On Payroll

To foster the growth of some sectors of the Brazilian economy, the Federal Government enacted Law no. 12546/2011 (resulting from the conversion of Provisional Measure no. 540/2011 - Brasil Maior Plan), which reduces the social security contributions levied on the remuneration of employees and individual taxpayers ('Employer's Portion' - portion payable by the employer) in certain sectors, such as: IT services providers, CIT services providers, as well as manufacturers of clothes, accessories, footwear, furniture and other products described in annex to to the legislation in effect.

In the specific cases of companies that render services included in the law, in general, the Law establishes a substitute for the payment of social security contributions due, namely the application of a rate of one percent (2.0%) of the gross sales, which will be effective until December 31, 2014. According to the law, we verify that the services related to Construction