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The Brazilian Legal System - Chapter 1 - Doing Business in Brazil

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Doing Business in Brazil - Looseleaf


Doing Business in Brazil - Electronic




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A. THE CONSTITUTION


1. The Federal Constitution

1.101 Under the Federal Constitution, Brazil is a Federative Republic constituted by the indissoluble union of the States, the Municipalities, and the Federal District.


1.102 The Constitution establishes, in Chapters II, III, IV, and V1 of Title III, the jurisdiction of the Federative Republic, the States, the Municipalities, and the Federal District, outlining the basic general rules regarding the legislative powers of each. The States also draw up their own constitutions, which are basically modeled on the Federal Constitution. The Federal Government will use part of the state tax revenues in maintenance and development of education and public health services.


1.103 The Constitution further establishes1 the basic rules for the imposition of taxes by the Federative Republic, the States, the Municipalities, and the Federal District, and the method of distribution of the taxes collected by the Federative Republic (e.g., income tax, the tax on manufactured products (IPI), the tax on minerals, etc.).2 It also regulates the annual allocation to public health services of funds originated from the budgets of the Federal Government, States, Federal District and Municipalities, such funds to be calculated in accordance with the specific provisions set forth in Amendments 29/00, 42/03 and 51/06.


1.104 The Constitution provides for three separate and independent branches, the legislative, the executive, and the judiciary, and defines the jurisdiction of each, their members and the criteria for the selection of such members. The legislative branch comprises the National Congress, which consists of the House of Representatives and the Federal Senate. Apart from proposing bills and draft laws, approving laws submitted by the executive branch, ratifying treaties, etc., the legislative branch exercises financial and budgetary control over the federal government, with the assistance of the Federal Accounts Tribunal.

Pinheiro Neto - Advogados, established in 1942, is Brazil's leading commercial law firm with offices in Sao Paulo, Rio de Janeiro and Brasilia. The founding Editor of this publication, the late J.M. Pinheiro Neto, was the Legal Advisor to the British Chamber of Commerce in Brazil.


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