Government measures in key jurisdictions 3rd edition final - Flipbook - Page 21
Brazil
Litigation
Are the courts
operating?
Most Brazilian Courts are operating through remote work and virtual proceedings, including the Supreme
Court and the Superior Court of Justice. The virtual operation of Brazilian Courts is working really well:
according to data provided by the Brazilian National Council of Justice, Brazilian Courts are not only
maintaining their activities during the pandemic, but are also improving their productivity.
This was possible because proceedings that were filed in the past few years in most Brazilian Courts have
digital case records, that can be accessed by court staff, lawyers and parties through a website, in which
lawyers can also file the petitions. The contact with most judges and Clerk’s offices can be made by
telephone, e-mail or videoconference during the pandemic and many trials are being held online. Thus, the
closure of courthouses over the country due to the pandemic mainly affected (i) the proceedings that do
not have digital case records, that have their deadlines suspended and (ii) some acts that cannot be
performed virtually (for example, appraisal of real estate, some trials, some attachment orders).
Tax
Has any new
legislation been
introduced in light of
Covid-19?
The pandemic outbreak triggered tax measures to attend the private sector in different spheres. It is
worth pointing out the following measures adopted by Brazilian Federal Government:
• (i) Reduction to zero rate of import taxes (until September 30, 2020), federal value-added tax on
industrialized products (IPI) (until October 1st, 2020), taxes on gross revenues (PIS/COFINS) and on
gross revenues on importation (PIS/COFINS-Importation) related to goods aiming at combating the
pandemic resulted from the Covid-19.
• (ii) Zero rated the tax on financial transactions (IOF) on loans of any nature contracted from April 3,
2020 to July 3, 2020.
• (iii) Rates of social security tax destined to associations (Sesi, Senai, Senac among others) were reduced.
• (iv) Deferral of payment for certain federal taxes (e.g., employee’s severance fees (FGTS), PIS/COFINS,
social security taxes, and taxes on telecommunications services), payment deferral for pending tax
instalments and postponement of deadlines to submit certain tax returns by individuals & corporations.
• (v) Suspension of procedural deadlines at the Federal Revenue Service (RFB) and at federal
administrative tax court. Recently, it was ruled procedures enabling online/remote voting for
judgment of federal tax proceedings in specific situations.
• (vi) Simplification of some customs clearance procedures and ancillary obligations (e.g. the validation
of tax clearance certificates for ninety days).
• (vii) Suspension of acts by the General Attorney’s office.
• (viii) Approval of new rules encouraging renegotiation of federal tax debts.
Specific local measures were also introduced by some States and municipalities. However, there are
glaring disparities between the measures from twenty-seven States and being even less uniform among
the more than 5,000 Brazilian cities. In this sense, it is worth pointing out the following:
• (i) Some states granted exemption or reduction of State Value Added Tax (ICMS) on import and
internal transactions with goods aiming at combating the pandemic resulted from the Covid-19
(e.g. Rio de Janeiro, Santa Catarina, Maranhão).
• (ii) Regarding donations transactions: (i) most of Brazilian States granted exemption of ICMS on the
remittance of goods aiming at combating the pandemic resulted from the Covid-19 to the public
administration or to non-profit assistance entities, and (ii) a few states granted exemption of tax
levied on donations (ITCMD) to the public administration (e.g. Ceará and Espírito Santo) or to hospitals
(e.g. Minas Gerais).
• (iii) Deferral of payment for certain taxes in some states and municipalities (e.g. ITCMD in Rio de
Janeiro and Amazonas; municipal tax levied on services for specific activities in Recife and Cuiabá).
• (iv) Payment deferral for pending tax instalments (e.g. Rio de Janeiro) and postponement of deadlines
to submit certain tax ancillary obligations (e.g. ITCMD in Goiás).
• (v) Suspension of certain tax executions registered as an overdue liability (dívida ativa), e.g. São Paulo.
• (vi) Suspension of procedural deadlines at state and municipal administrative tax courts. Recently, in
some states and municipalities, it was ruled procedures enabling online/remote judgment.
Government measures in key jurisdictions
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