1E9Ct5D

espective goods are purchased by a corporate entity, beneficiary of REPES for incorporation into itsfixed assets, and (ii) of PIS/Import and COFINS/Import, when said goods are imported directly by acorporate entity, beneficiary of REPES for incorporation into its fixed assets, according to the termsand conditions set forth in law;b) in the case of the sale or importation of services to be employed for the development of softwareand information technology services in the Country, the following enactments are suspended: (i) ofPIS and COFINS imposed on the gross revenue received by the service provider, when the recipientis a corporate entity, beneficiary of REPES, and (ii) of PIS/Import and COFINS/Import, for servicesimported directly by a corporate entity, beneficiary of REPES, according to the legal terms andconditions.In accordance with the annex of Decree 5713/06, the goods and services benefited by the suspensionare: data storage, management, processing and transmission; software development; technicalsupport in information technology equipment, communication systems and software; maintenance andupdate of information technology equipment, communication systems and software; digital certificationand network management.The above suspensions will be converted into a zero rate after the company attains 50% of its annualgross revenue in exports within the legal term: 3 years maintaining an average 50% of the annualgross revenues derived from exports.The RECAP regime benefits any legal entity that is primarily an exporter, i.e., a legal entity whosegross revenue arising from exports during the calendar year immediately preceding the adhesion tothe RECAP regime was at least 50% of the company’s total gross revenue arising from the sale ofgoods and services during that period, and that agrees to keep such percentage for 2 calendar years.Any legal entity that has recently started operating or that did not reach such 50% export revenue inthe preceding year can adhere to the RECAP regime as long as it agrees to have its gross revenuearising from exports reach at least 50% of its total gross revenue arising from the sale of goods andservices, during 3 calendar years.As to RECAP benefits in case of sales or imports of new machines, apparatus, instruments andequipment provide for the suspension of the following enactments: (i) of PIS and COFINS imposed ongross revenues derived from sales in the domestic market, when the said products are purchased by acorporate entity, beneficiary of RECAP for incorporation into its fixed assets, and (ii) of PISP/Importand COFINS/Import, when the said products are imported directly by corporate entities, beneficiariesof RECAP for incorporation into their fixed assets.86