- 44 -
(d) it is possible to establish another period for the
payment of the tax, as from the date of remittance of the
interest to the foreign lenders, because of the complex
calculation of the interest and consequently of the tax
itself;
(e) it is possible, in space 31 of the DARF, to indicate
"Brazilian Financing Plan" as a reference, given the
absence of a Certificate of Registration for these
transactions;
(f) in the event that the income tax is paid late:
(f)(1) whether the Bank will nevertheless be entitled
to the above-mentioned pecuniary benefit;
(f)(2) whether it would be possible to waive the
monetary correction, delinquent interest and penalty.
(3) Interest received by individuals or legal entities,
resident or domiciled abroad, from individuals or
entities resident or domiciled in Brazil, or received
from a permanent establishment located in Brazil, owned
by individuals or legal entities resident or domiciled
abroad, is subject to withholding tax at the rate of 25%
* * * . The * * * [contribuente] of this tax is an
individual or legal entity, resident or domiciled abroad,
which has the legal availability of the interest. Said
tax must be withheld at the time of payment or credit by
the interest paying source bearing in mind that the * *
* [contribuente] individual or legal entity, resident or
domiciled abroad - does not file an income tax return in
Brazil. Said tax must be withheld even if the paying
source is a legal entity of public law with tax immunity,
because this is not a tax on the entity of public law
that has immunity but rather on parties resident or
domiciled abroad.
(4) It is obvious that, if the party resident or
domiciled abroad, the interest creditor, is immune or
exempt from this tax, on account of international treaty
or domestic legislation, the tax should not be withheld.
In the case of the interest paid by the Central Bank of
Brazil * * * , there is an atypical situation. * *
* [The Central Bank] is a federal government agency
[autarquia] responsible, among other duties, for issuing
currency, acting as depositary of the official gold and
foreign currency reserves, providing for the placement of
domestic and foreign loans, furthering the normal
function of the exchange market, acting as a monetary
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