Tax Revenue Sharing

5 minutes • 978 words

Article 157. The following shall be assigned to the states and to the Federal District:

the proceeds from the collection of the federal tax on income and earnings of any nature, levied at source on income paid on any account by them, by their autonomous government entities and by the foundations they institute and maintain;
20% of the proceeds from the collection of the tax that the Union may institute in the exercise of the powers conferred on it by article 154, I.

Article 158. The following shall be assigned to the municipalities:

the proceeds from the collection of the federal tax on income and earnings of any nature, levied at source on income paid on any account by them, by their autonomous government entities and by the foundations they institute and maintain;
50% of the proceeds from the collection of the federal tax on rural property, concerning real property located in the municipalities, or 100% of such proceeds in the case of the option referred to in article 153, paragraph 4, 3
50% of the proceeds from the collection of the state tax on the ownership of automotive vehicles licensed in the municipalities
25% of the proceeds from the collection of the state tax on transactions regarding the circulation of goods and on rendering of interstate and intermunicipal transportation services and services of communication.

The revenue portions assigned to the municipalities, as mentioned in item IV, shall be credited in accordance with the following criteria:

at least three-fourths, in proportion to the value added in the transactions regarding the circulation of goods and the rendering of services carried out in the territory of the municipalities
up to one-quarter, in accordance with the provisions of a state law or, in the case of the territories, of a federal law.

Article 159. The Union shall remit:

of the proceeds from the collection of the tax on income and earnings of any nature and of the tax on industrialized products, forty-eight per cent as follows: a) twenty-one and a half of one per cent to the Revenue Sharing Fund of the States and of the Federal District; b) twenty-two and a half of one per cent to the Revenue Sharing Fund of the Municipalities; c) three per cent, for application in programs to finance the productive sector of the North, Northeast and Centre-West Regions, through their regional financial institutions, in accordance with regional development plans, the semi-arid area of the Northeast being ensured of half of the funds intended for that Region, as provided by law; d) one per cent to the Revenue Sharing Fund of the Municipalities, to be remitted within the first ten days of the month of December of each year;
of the proceeds from the collection of the tax on industrialized products, ten per cent to the states and to the Federal District, in proportion to the value of the respective exportations of industrialized products;
of the proceeds from the collection of the contribution for intervention in the economic domain set forth in article 177, paragraph 4, twenty-nine per cent to the States and to the Federal District, distributed in accordance with the law, with due regard for the allocation referred to in item II, c, of said paragraph.

Paragraph 1. For purposes of calculating the amount to be remitted in accordance with the provisions in item I, the portion of the collected tax on income and earnings of any nature assigned to the states, to the Federal District and to the municipalities shall be excluded, as provided by articles 157, I, and 158, I.

Paragraph 2. No federated unit may be allocated a portion in excess of 20% of the amount referred to in item II, and any excess shall be distributed among the other participants, maintaining, for the latter, the apportionment criterion established therein.

Paragraph 3. The states shall remit twenty-five per cent of the funds they may receive as provided by item II to the respective municipalities, observing the criteria established in article 158, sole paragraph, I and II.

Paragraph 4. 25% of the amount of monies referred to in item III and allocated to each State shall be assigned to its Municipalities, in accordance with the law referred to in said item. Article 160. It is forbidden to withhold or to make any restriction to the remittance and use of the funds assigned in this section to the states, to the Federal District and to the municipalities, including any tax additions and increases. (CA No. 29, 2000) Taxation and Budget 119The prohibition mentioned in the present article does not prevent the Union and the states from remitting the funds on condition of:

payment of their credits, including those of the associate government agencies;
compliance with the provisions of article 198, paragraph 2, items II and Article 161. A supplementary law shall:
define the added value for the purposes provided by article 158, sole paragraph, I;
establish rules for the remittance of the funds referred to in article 159, especially the criteria for the sharing of the funds set forth in its item I, seeking to promote social and economic balance among states and among municipalities;
provide for the monitoring, by the beneficiaries, of the calculation of the quotas and release of the participations set forth in articles 157, 158 and 159. The Federal Audit Court shall calculate the quotas referring to the participation funds mentioned in item 2.

Article 162. The Union, the states, the Federal District and the municipalities shall announce, on or before the last day of the month following that of collection, the amounts of each of the tributes collected, the funds received, the tax sums remitted and to be remitted and the numerical expression of the apportionment criteria. The data announced by the Union shall be discriminated by state and by municipality; those of the states, by municipality.