Government measures in key jurisdictions 4th edition - Flipbook - Page 20
Brazil
Tax
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:
Has any new
legislation been
(i) Reduction to zero rate of import taxes (until September 30, 2020), federal value-added tax on
introduced in light of industrialized products (IPI) (until October 1st, 2020), taxes on gross revenues (PIS/COFINS) and on gross
Covid-19?
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.
Company
law matters
Have any measures
been put in place to
accommodate social
distancing (such as
remote general
meetings)?
20
Law No. 14.030, issued by the Federal Government on July 28th (Law No. 14.030), converted into
definitive regulations most of the measures that had previously been set forth by Provisional
Measure No. 931, issued on March 30th (“Provisional Measure No. 931”). The law confirmed some
amendments to the Brazilian Civil Code and to the Brazilian Corporations Law, among other laws.
One of the rules established by Law No.14.030 is that all corporate meetings may be held digitally. It
also determined that shareholders should be able to participate and vote via any electronical means
that are appointed by the management, as long as it is secure and enables the identification of the
shareholder.
Government measures in key jurisdictions