As a result of the impacts of COVID-19, extraordinary measures have been adopted by the Federal, State and Municipal governments in relation to tax collection, compliance with ancillary tax obligations and customs procedure simplification by the responsible entities.
Among the measures effectively adopted in the last days, we highlight the following:
I. Laws, Provisional Measures, Decrees and Other Legal Rules
- Federal Government:
- Provisional Measure No. 960/2020: Extends the periods for suspension of tax payments provided for drawback regime in cases that were expected to end in 2020 and that were already extended for one year by tax authorities.
- Resolution CEGEX No. 40/2020: Reduces to 0% the rates of import tax levied on the import of products listed.
- CNJ Resolution No. 318/2020: Establishes automatic suspension of deadlines related to lawsuits in locations where lockdown restriction measures were imposed.
- State and Federal District
- State Decree No. 42,134/2020: Suspends, for 60 days: (i) the deadlines for (a) complying with notifications, (b) completion of ongoing inspection actions and (c) administrative deadlines proceedings at the State Public Administration; (ii) the judgment sessions of the State Court of Appeals; (iii) the General Attorney´s Office's administrative collection measures, such as enrollment in active debt, protest of active debt certificates and filing of tax foreclosures. Extends, for 60 days, the deadline for filing the EFD ICMS/IPI and the Special Regimes' term. Exempts from ICMS the goods donated to government entities.
- State Decree No. 42,247/2020: Extends, until May 13, 2020, the suspension of deadlines in administrative proceedings.
- Resolution No. 14/2020-GSEFAZ: Authorizes the postponement of a portion of ICMS and contributions to the FMPES, FTI, UEA and FPS with a due date in April and May 2020 as long as the foreseen requirements are observed.
- State Decree No. 19,672/2020: Suspends, until May 15, 2020, the administrative tax proceedings deadlines.
- Espírito Santo
- State Decree No. 4,623-R/2020: Extends, for 90 days, the tax clearance certificates, licenses and permits with an expiration date between March 16 and April 30, 2020. Extends, for 90 days, the Negative Certificates of Failure to Pay with an expiration date between March 16 and July 31, 2020. Suspends, until July 1, 2020, the procedures related to (i) termination of installments due to payment default; (ii) protests of overdue tax liabilities; (iii) filing tax foreclosures; (iv) lien of the company´s revenue granted in tax foreclosures; (v) cancellation or suspension of INVEST-ES or COMPETE-ES benefits. Suspends, until April 30, 2020, the administrative proceedings deadlines except those related to taxes.
- State Decree No. 4.624-R/2020: Exempts the taxpayer from filing SINTEGRA's magnetic files related to the March 2020 transactions. Extends, for 90 days, the deadlines for filing administrative defenses and filing of appeals to CERF, and for authentication of tax books with an expiration date between March 16 and April 30, 2020. Extends, until July 31, 2020, the deadline for sending the Taxable Transactions Statement ("DOT") related to 2019.
- Mato Grosso
- Ordinance No. 077/2020-SEFAZ: Extends, for the sixth day of June and July 2020, the ICMS payments deadlines due in May and June 2020 by taxpayers whose economic activity is slaughterhouse or meat packaging.
- Minas Gerais
- State Law No. 23,367/2020: Exempts the ITCD payment related to goods to be used against the COVID-19 crisis to the following beneficiaries: (i) private hospitals; and (ii) institutions in charge of hospitals constructed for attending to COVID-19 patients until December 31, 2020.
- State Decree No. 47,940/2020: Provides a new deadline for the payment of IPVA levied on the acquisition of new vehicles and importation of vehicles whose date of acquisition on the sale invoice or date of import on the import document is between March 3 and June 15, 2020.
- Normative Instruction No. 13/2020: Authorizes and regulates the implementation of the virtual trials sessions, to be held by video conference, in the tax administrative proceeding.
- State Complementary Law No. 429/2020: Suspends the deadlines of administrative proceedings deadlines, as well as the terms of the related statue limitation periods.
- State Decree No. 48,989/2020: Suspends, until May 15, 2020, the administrative proceedings deadlines, as well as the terms of the related statute limitation periods.
- Rio de Janeiro
- State Law No. 8,804/2020: Exempts the ITCMD payment on donations to the State Health Fund and to the Scientific, Technological and Innovation Institute from Rio de Janeiro.
- State Decree No. 47,063/2020: Extends deadlines of installments related to tax and other debts enrolled as overdue liability that are under installment plans.
- SEFAZ Ordinance No. 144/2020: Allows the implementation of the virtual trials sessions, to be held by video conference, in the tax administrative proceeding.
- Rio de Janeiro Taxpayer Council Ordinance No. 39/2020: Regulates the implementation of the virtual trial sessions, to be held by video conference, within the Rio de Janeiro Taxpayer Council.
- Santa Catarina
- State Decree No. 595/2020: Suspends, until June 30, 2020, the cancellation of ICMS and ITCMD debt installments due to lack of payment.
- Ordinance No. 11/SMF/GAB/2020: Extends, until May 31, 2020, the suspension of deadlines within the Administrative Court of Appeals. Establishes that the trial sessions will be made virtually.
- Rio de Janeiro
- Municipal Law No. 6,740/2020, Municipal Decree No. 47,419/2020, Municipal Decree No. 47,421/2020 and Municipal Decree No. 47,422/2020: Establishes tax benefits for the payment of IPTU from previous years of those properties that are used as a hotel. Extend the payment deadline of 2020 IPTU, which can be paid with discount.
These acts also reestablish, for 90 days, the Municipal Amnesty Program ("Concilia Rio") for ISS, ITBI, IPTU and Garbage Collection Fee related to triggering events that occurred until December 31, 2019.
The payment can be made as follows: (i) in a lump sum with 10% of reduction of the updated principal and 80% of reduction of late payment fine and ex officio fine; or (ii) in up to 12 installments with 10% of reduction of the updated principal and 60% of reduction of late payment fine and ex officio fine.
- SMF Ordinance No. 3,145/2020: Extends, until May 20, 2020, the deadlines related to the administrative proceedings.
- Joint Ordinance No. 24/2020: Extends, until May 29, 2020, the suspension of deadlines of the tax administrative proceedings.
- São Paulo
- Municipal Decree No. 59,391/2020: Extends, for 30 days, the suspension for enrollment of debits as overdue liabilities.
II. Relevant Bills
- Law Bill No. 72/2020: Proposes the suspension of the ICMS tax substitution regime during the COVID-19 pandemic period.
- Law Bill No. 924/2020 and Law Bill No. 38/2020: Institutes the tax collection on large fortunes, while the state and public calamity endure, earmarking the proceeds to combat the COVID-19 pandemic;
- Law Bill No. 50/2020: Institutes the tax collection on large fortunes and compulsory loans, to finance social needs caused by the COVID-19 pandemic.
- Law Bill No. 985/2020: Suspends the deadlines for the presentation of various ancillary obligations, as well as procedures related to the collection of fines and interest for late payments.
- Law Bill No. 1,131/2020: Establishes exception of IPI levied on personal hygiene products and suspends such tax levied on its raw materials, intermediate products and packaging.
- Rio de Janeiro
- Bill Law No. 1,765/2020: (i) Reduces, by 20%, the ISS rates related to the taxable events that occurred in April, May, June and July 2020; (ii) gives 20% discount to the balance of IPTU and Household Garbage Collection Fee not yet paid and exemption from late payment, upon a single payment on a date to be regulated by decree; (iii) discounts of up to 40% in the payment of IPTU and 80% of late payment charges for hotel properties; and (iv) authorizes the Executive Branch to resume conciliation programs with taxpayers.
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And for any legal questions related to this pandemic, please contact the authors of this Legal Update or Mayer Brown’s COVID-19 Core Response Team at FW-SIG-COVID-19-Core-Response-Team@mayerbrown.com.
For more information about the topics raised in this Legal Update, please contact our Tax team.