Simple Tax Companies which has accumulated revenues up to R$ 3,600 in the last 12 months are allowed to choose this

kind of taxation; The percentage will depend of your amount of revenue, and the segment of activity. It can be from 4% to 22% Income Statement Revenue Simple Tax Net Revenue Costs Gross Profit Operating Expenses EBITDA Depreciation Net Profit 1000 -83 917 -300 617 -300 317 -10 307

8.28% For example = a retail companie with accumulate 900 to 1,080 in the last 12 months, would pay 8,2

companie with accumulated revenues between t 12 months, would pay 8,28%

Presumed Profit Companies that have revenues up to R$ 48,000 in the year are allowed to choose this kind of taxation; These taxes are calculated over a presumed profit that is found according to its business segment (follow the table bellow); The taxes are: IRPJ 15 % (plus 10% over the value that exceds 750 in the quarter); CSLL 9 %; Pis 0,65%; Cofins 3%; and have to be paid quarterly or annually, it's up to the owner. 1st example: Let's suppose it is an hospital, to find the "presumed profit"we need apply 8% to IRPJ and 12% to CSLL, than we can aplly the 15% and 9 %, respectively, over that basis. Income Statement 1 2 3 4 5 6 7 8 9 10 11 12 13 Revenue Pis Cofins IRPJ Basis for IRPJ CSLL Basis for CSLL Net Revenue Costs Gross Profit Operating Expenses EBIDA Depreciation Net Profit 1000 -7 -30 -12 -11 941 -300 641 -300 341 -10 331 0.65% 3.00% 15.00% 9.00%

8% 80 12% 120

Percentages applied to gross income according to activity Activity IRPJ General Activitys 8.0% Retail Fuel 1.6% 16.0% Transport Services (except load) Load Transport Services 8.0% General Services (except for hospital services) 32.0% Hospital Services 8.0% Brokerage Business 32.0%

CSLL 12% 12% 12% 12% 12% 12% 32%

Management, lease or assignment of assets and rights of any nature (including buildings)

32.0%

32%

Real Profit Any companies are allowed to choose this kind of taxation, but companies with revenues higher than R$ 48,000 in the year, are obligated to. These taxes are calculated over the real profit, and in this case, IRPJ and CSLL are de same aliquots, but PIS e Cofins are different: IRPJ 15%; CSLL 9%; Pis 1,65%; Cofins 7,6%; and have to be paid quarterly or annually, it's up to the owner.

Income Statement 1 2 3 7 8 9 10 11 12 11 Revenue Pis Cofins Net Revenue Costs Gross Profit Operating Expenses EBITDA Depreciation EBIT IRPJ CSLL 13 Net Profit 1000 -17 -76 908 -300 608 -300 308 -10 298 -45 -27 226

1.65% 7.60%

15% 9%