Federal Government - Tax Measures against Covid-19

Updated until March 24, 2020

Federal Legislation

• CAMEX - Federal Taxes and Contributions - Import Tax - Covid-19

CAMEX Resolution no. 17, of March 17, 2020 - (DOU of March 18, 2020 - Ret. DOU of  March 20, 2020) - Grants temporary reduction of the Import Tax rate, aiming to facilitate the fight against the pandemic Corona Virus / Covid-19.

The standard changes to zero per cent, until September 30, 2020, the ad valorem rate of the Import Tax on goods classified in the Mercosur Common Nomenclature - NCM codes listed in Annex I of this Resolution.

• Ministry of Economy - Collection of Federal Debt - COVID-19

Ordinance ME nº 103, of March 17, 2020 - (DOU Extra Edition of March 18, 2020) - Deals with measures related to the acts of collection of the Union's active debt, including suspension, extension and deferral, due to the declared pandemic by the World Health Organization related to Coronavirus (COVID-19). Among the measures, we highlight:

i. suspension for up to 90 days of:

a) deadlines for the defense of taxpayers in administrative proceedings for the collection of the Union's active debt;

b) forwarding of Active Debt Certificates for extrajudicial protest;

c) introduction of new taxpayer collection and accountability procedures;

d) procedures for termination of installments due to default; and

ii. offering a proposal for an adherence transaction referring to debts registered in the Union's active debt, upon payment of at least 1% (one percent) of the total debt amount, with payment of the remaining installments for 90 days, observing the maximum term of up to 84 months or up to 100 months for individuals, micro and small businesses, as well as the other conditions and limits established in Provisional Measure nº 899/2019.

• PGFN - Extraordinary Transaction - COVID-19

PGFN Ordinance No. 7,820, of March 18, 2020 - (DOU Extra Edition of March 18, 2020) - Establishes the conditions for an extraordinary transaction in the collection of the Union's active debt, due to the effects of the coronavirus (COVID-19) in ability to generate income for debtors registered in DAU.

Among the conditions established for the extraordinary transaction, the following stand out:

1. the down payment corresponding to 1% of the total amount of debts to be transacted, divided into up to 3 equal and successive installments;

2. the installment payment of the remaining amount in up to 81 months (which may be up to 97 months in the event of a natural person taxpayer, individual entrepreneur, micro-company or small business); and

3. the deferral of payment of the first installment of the installment referred to in item “ii” to the last business day of June 2020.

• PGFN - Temporary measures - COVID-19

PGFN Ordinance No. 7,821, of 3/18/2020 - (DOU Extra Edition of March 18, 2020) - Suspends deadlines and requirements due to the coronavirus (COVID-19), within the scope of the Union's Active Debt.

The norm suspended for 90 days the deadlines in progress as of March 16, 2020 or that started on that date specifically for the following procedures and appeals:

1. impugnation and appeal against a decision issued under the Administrative Procedure for Recognition of Responsibility - Pert, provided for in arts. 3rd and 6th of Ordinance PGFN No. 948/2017;

2. presentation of manifestation of nonconformity and appeal against the decision to be considered in the scope of the exclusion process of the Special Tax Regularization Program - Pert, provided for in art. 18 of Ordinance PGFN No. 690/2017; as well as

3. advance offer of guarantee in tax execution, submission of Request for Review of Registered Debt - PRDI and for appeal against the decision that rejects it, provided for in art. 6, item II, and in art. 20 of Ordinance PGFN nº 33/2018.

• PGFN - Payment of Debts to the National Treasury - COVID-19

Joint Ordinance RFB / PGFN nº 541, of March 20, 2020 - (DOU of March 23, 2020) - Amends Joint Ordinance RFB / PGFN nº 895/2019, which provides for the installments referred to in arts. 10 to 13 and 14 to 14-F of Law No. 10,522 / 2002.

The minimum installment amounts, previously provided for, may be applied until December 31, 2020 (before the expected term was March 31, 2020).

• Simples Nacional - Payment Term - COVID-19

Resolution CGSN nº 152/2020, of March 18, 2020 - (DOU Extra Edition of March 18, 2020) - Extends the deadline for payment of federal taxes within the scope of Simples Nacional, as well as the portion related to the entrepreneur's social security contribution , as an individual taxpayer, due by the Individual Microentrepreneurs (MEI), according to the calendar presented in the standard.

• National Treasury - Proof of Fiscal Compliance - Extension of the term of validity of Negative Debt Certificates - COVID-19

Joint Ordinance RFB / PGFN nº 555, of March 23, 2020 - (DOU of March 24, 2020) - Extends, for 90 days, the validity of the following certificates, valid on March 24, 2020:

1. Debt Clearance Certificates related to Federal Tax Credits and the Federal Debt (CND); and

2. Positive Certificates with Debt Negative Effects related to Federal Tax Credits and the Federal Debt (CPEND).

Labor and Social Security Legislation

• INSS - Protective Measures - Coping with Covid-19

INSS Ordinance No. 373, of March 16, 2020 - (DOU of March 17, 2020) - Establishes guidelines regarding protective measures, within the scope of the INSS, to face the public health emergency resulting from the coronavirus pandemic (COVID 19).

The decree interrupts the routines for updating and maintaining benefits for up to 120 (one hundred and twenty) days, such as blocking benefits due to lack of proof of life, suspension of benefits due to lack of documents and information, among others.

• INSS - Protective Measures - Coping with Covid-19

INSS Ordinance No. 375, of March 17, 2020 - (DOU of March 18, 2020) - Establishes measures for the decentralized units of the National Institute of Social Security regarding the protection measures that must be adopted in attending to the public to prevent contagion by the new coronavirus (COVID-19).

Unscheduled services at the units of the National Social Security Institute are suspended for a period of 15 (fifteen) days, as of the publication of this ordinance.

Emphasizing that only scheduled services related to the fulfillment of requirements for social security and assistance benefits requirements must be maintained; social security medical expertise; and social assessments and opinions on social security and assistance benefits.

• INSS - Continuous Installment Benefit - BPC - COVID-19

MC Ordinance 330, of March/18, 2020 - (DOU of March 19, 2020) - Establishes the postponement of procedures due to the non-compliance with the enrollment schedule in the Federal Government's Single Registry for Social Programs to strengthen the confrontation of Public Health Emergency of International Importance due to the coronavirus (COVID-19).

• INSS - Service to Insured and Beneficiaries - COVID-19

SEPRT / INSS Ordinance 8,024, of March 19, 2020 - (DOU of March 20, 2020) - Regulates that, until April 30, 2020, the attendance of policyholders and beneficiaries of the National Social Security Institute, during the period addressing the public health emergency of international importance resulting from the coronavirus pandemic (COVID-19), will be provided through remote service channels.

• Labor Measures - COVID-19

Provisional Measure nº 927 of March 22, 2020 - (DOU Extra Edition of March 22/2020) - Determines the labor measures to face the state of public calamity recognized by Legislative Decree nº 6/2020, and the public health emergency of international importance due to the coronavirus (COVID-19).

Take the opportunity to read our extraordinary newsletter with the highlights of MP nº 927 (here).

• INSS - Customer service - COVID-19

INSS Ordinance No. 412, of March 20, 2020 - (DOU of March 23, 2020) - Provides for the maintenance of the rights of insured and beneficiaries of the INSS due to the restrictive measures in public attendance to face the public health emergency of international importance due to the coronavirus pandemic (COVID-19).

Some measures presented in the standard are: meeting requirements remotely, waiving the requirement to submit certified copies, suspending the requirement periods, suspending face-to-face service until April 30, among others.