As a result of the impacts caused by COVID-19, extraordinary measureses are beginning to be held by the Federal, State and Municipal governments in relation to taxes collection, compliance with ancillary tax obligations and customs procedures simplification by the responsible entities.
Among the measures effectively adopted from March 30th to April 1st 2020, we highlight the following:
- Federal Government
- Provisional Measure No. 932/2020: reduces in 50%, until June 30, 2020, the rates of the following contributions to third parties: SESCOOP; SESI; SESC; SEST; SENAC; SENAI; SENAT and SENAR.
- Provisional Measure No. 930/2020: establishes that foreign currency exchange gains on hedge on investments on controlled and affiliated companies domiciled overseas, held by financial institutions, will be included in the Corporate Income Taxes calculation basis in the proportion of 50% for the calendar year 2021 and 100% from calendar year 2022.
- Decree No. 10.302/2020: reduces, until September 30, 2020, the rate of IPI levied on the listed medical and hospital products to 0%. .
- Decree No. 10,305/2020: reduces the rate of the IOF levied on credit transactions contracted between April 3, 2020 and July 3, 2020 to 0%, including the additional IOF rate of 0.38%. The benefit also applies to novation, extension, consolidation, admission of debt and similar transactions in which the debtor remains the same .
- Ordinance PGFN No. 158/2020: suspends, for 90 days, the notifications of administrative collection and protest of debts enrolled for judicial collection, with the exception of those issued to avoid the passing of statute of limitations.
- Ordinance PGFN No. 8.792/2020: maintains, until December 31, 2020, the minimum amounts set forth for payments in installments by Ordinance PGFN No. 448/2019.
- Normative Instruction No. 1,930/2020: Extends the deadline for filing the Individual Income Tax Return to June 30, 2020. It also repealed the obligation to inform, in the Return, the number of the receipt of the last filed return.
- State and Federal District
- State Decree No. 5.630/2020: suspends, for 60 days, the deadines for compliance with administrative procedures.
Authorizes the State Attorney General's Office to suspend, for up to 90days, acts related to the collection of ICMS, including (i) extrajudicial protest of debts; (ii) filing of new tax foreclosures (except those aimed to avoid the passing of statute of limitations) and (iii) requiring patrimonial constriction measures in ongoing tax foreclosures.
Suspends, for up to 90days, the termination of installments programs for lack of payment of installments.
Extends, for 30 days, the validity of the Tax Clearance Certificates
Extends, for 60 days, special tax regimes, as well as the deadline for filing of the Digital Tax Bookkeeping ("EFD").
- Minas Gerais:
- Resolution of Stat Attorney's Office No. 51/2020: suspends, for 45 days, the enrollment of debts for judicial collection, the filling of tax foreclosures and the protest of debts.
- State Law No. 7.369/2020: reduces, for 120 days, the rate of the ICMS tax levied on operations with the listed medical and hospital products to 12% .
- Mato Grosso
- State Decree No. 433/2020: i) extends the term for filing the EFD and DeSTDA until the last business day of the months in which the ancillary obligations must be filed; and ii) extends, until June 30, 2020, the validity of the tax clearance certificates issued between February 17 and May 31, 2020.
- State Decree No. 48.875/2020: extends, until June 30, 2020, the deadlines for the filling of ancillary obligations (except those related to the issuance of fiscal invoices) and the collection of debts, as well as suspends, until June 30, 2020, the issuance of debt notifications, new acts of protest and the filing of tax foreclosures, except those aimed to avoid the passing of statute of limitations. Extends, until June 30, 2020, the validity of tax clearance certificates expired as March 14, 2020.
- SF Ordinance No. 71/2020: allows the filing of petitions by e-mail during the suspension of the deadlines of administrative proceedings.
- SF Ordinance No. 72/2020: removes, between July 10, 2019 to January 31, 2020 and March 27, 2020 to December 31, 2020, the limit for inclusion of debts in installments payment programs.
- São Paulo
- Municipal Decree No. 59,283/2020: suspends, for 30 days, as of March 17, 2020, all administrative proceedings deadlines.
- Municipal Decree No. 9,117/2020: extends, for 90 days, the deadlines of the Property Tax ("IPTU") payments related to calendar year2020.
Municipal Decree No. 8,857/2020: extends, for 90 days, the validity of the tax clearance certificates of debts, as well as suspend, for 90 days, the (i) deadlines of administrative tax proceedings; (ii) administrative debts collections; and (iii) protest of debts enrolled for judicial collection. Extends the deadline for the payment of the ISS for companies registered in the Simplified Taxation System.
- Municipal Law No. 2,594/2020: extends, for 3 months, the due date for the payment of municipal tax installments. Authorizes the online inclusion of debts in municipal installment programs, without the mandatory signing of a term, during the period of April 1, 2020, to June 6, 2020. Authorizes the extension of IPTU payment to April 4, 2020, in case of payments made in one single installment.
- Porto Alegre
- Municipal Decree No. 20,534/2020: suspends the deadlines of tax appeals.
- Normative Instruction SEFAZ No. 04/2020: extends, for 60 days, the validity of the tax clearance certificates valid on 03/18/2020.
- Municipal Law No. 18,701/2020 and Municipal Decree No. 33,579/2020: extends, until June 30, 2020, the deadline for enrollment at the Amnesty Program ("PPI"), as well as includes open debts related to periods prior to December 31, 2019.
- Rio de Janeiro
- Resolution SMF No. 3,136/2020: changes the Rio de Janeiro Municipal Tax Court internal rules to allow virtual trials sessions.
For more information about the topics raised in this Legal Update, please contact our Tax team.