1E9Ct5D

Still in relation to the interest, the term for its calculation will begin to run on the date that the fundsenter the Country, namely, the settlement date of the foreign exchange contract. However, when thedisbursement of the funds abroad occurs up to five (5) consecutive days before their entry into theCountry, the disbursement date may be used as the initial date for the reckoning of the term.After the entry of the funds into the Country, the payment scheme must be registered, in order topermit remittances of the payments of the interest and principal abroad.As a general rule, the interest will be taxed by withholding income tax, at the rate of 15%.The Tax on Financial Operations – Currency Exchange (IOF – currency exchange) is 0.38% for loansexceeding 360 days, and 6% for operations under the limit mentioned above.However, besides IOF – currency exchange the loan is also subject to IOF – credit, which is usually0.0041% a day plus the additional 0.38% over the operation amount.If it does, there is no TFO on the principal amount. When the principal amount and interests are paid,there is no TFO, regardless of the term of the loan. We emphasize that such parameters are oftensubject of amendments, which can be in effect from their publication by decree.Loans (principal and interest) may, as a general rule, be converted into foreign direct investment, aftertheir registration in the ROF, by means of the performance of simultaneous foreign currency purchaseand sale operations.The accelerated payment of the loan principal (either total or partial) is permitted, it being sufficient toinclude, in the ROF, the payment date of the principal and interest, and the sum of the interest due upto the payment date.1.3.2. Foreign loans via the issuance of securitiesThe RMCCI regulates the electronic declaratory registration, by means of the Financial OperationRegistration Module (ROF), of foreign loan operations obtained by means of the placement ofconvertible securities (issued by an institution based in the Country and placed abroad, whichrepresent rights over shares or quotas of its own issuance) and securities exchangeable into shares orquotas (issued by an institution based in the Country and placed abroad, which represent rights overshares or quotas issued by another institution based in the Country) or also warrants (purchaseoptions of shares or quotas, placed abroad by institutions based in the Country).6