EXTENSION OF THE LIST OF ACTIVITIES CONSIDERED ESSENTIAL: Decree nº 10,344 was published on 11 May 2020. It expands the list of activities considered essential during the Pandemic (by amending Decree nº 10,282 of 20 March 2020). Amongst the services included in the decree are (i) civil construction activities; (ii) beauty salons and barbershops; and, (iii) sport academies of all modalities. Decree nº 10.344 of 11 May 2020.
BRAZILIAN FEDERAL REVENUE AND NATIONAL TREASURY ATTORNEY-GENERAL’S OFFICES EXTEND THE DUE DATES FOR THEIR INSTALMENT PAYMENT PROGRAMMES: Ordinance no. 201 was published on 12 May 2020. It extends the monthly instalment payment terms for instalment payment programmes under the administration of the Special Secretariat of the Brazilian Internal Revenue Service and the National Treasury Attorney-General’s Office – in light of the Pandemic. The Ordinance does not apply to instalment payment of taxes assessed through Special Unified Tax Collection System for micro companies and small businesses (Simples Nacional). Ordinance No. 201 of 11 May 2020.
SUSPENSION OF REGISTRATIONS IN THE REGISTER OF DEFAULTERS: Bill no. 675/2020 will be voted today. It suspends and prevents – on a retroactive basis – new registrations in the defaulters’ registers (held by analysis and information companies) for credit decisions while the public calamity resulting from the Pandemic is in effect. The text foresees the suspension of new registrations and their effects for 90 days counting from 20 March 2020. Bill no. 675/2020.
BRAZILIAN PARLIAMENT ENACTS CONSTITUTIONAL AMENDMENT OF “WAR BUDGET”: Constitutional Amendment no. 106 was published on 8 May 2020. It determines an extraordinary tax, financial and hiring regime to deal with national public calamity resulting from the pandemic. The Federal Executive Branch may – on a temporary and emergency basis – adopt simplified processes for hiring personnel, as well as for works, services and purchases that ensure – when possible – competition and equal conditions for all interested parties. Constitutional Amendment 106.
COVID-19 COMBATING MEASURES: On 4 May 2020, a Bill was presented in the House of Representatives aiming at obliging laboratories to inform the government about cases of Covid-19 within 24 hours. The notification must be made in secrecy to the Ministry of Health, under penalty of warning, fine or suspension for the establishment that does not comply with the rule. The Bill awaits voting in the House of Representatives Plenary. Bill No. 2349/2020.
THE SUCCESSION AND DONATION TAX (ITCMD) WILL NOT BE CHARGED IN DONATIONS TO FIGHT COVID-19 IN RIO DE JANEIRO: the Succession and Donation Tax (ITCMD) will not be levied on financial donations to the State Health Fund as long as the Pandemic persists. The determination is from Law 8.804/2020 approved by Governor W. Witzel and published in the Official Gazette on 7 May 2020. Law No. 8,804/2020.
PROVISIONAL MEASURE AUTHORISES ADVANCE PAYMENTS IN BIDS: Provisional Measure No. 961 was published on 7 May 2020. It: (i) authorises advance payments in bids and contracts; (ii) adjusts the limits regarding bidding waiver; and (iii) expands the use of the Differentiated Regime of Public Contracting (RDC) during the state of public calamity. Provisional Measure no. 961 of 6 May 2020.
TRIAL SESSIONS AT THE BRAZILIAN SECURITIES AND EXCHANGE COMMISSION (CVM): Resolution No. 855 was published on 4 May 2020. It determines procedures for holding trial sessions of the Securities and Exchange Commission (CVM) exclusively by videoconference as long as the protection measures to confront the Pandemic persist. Resolution No. 855 of 30 April 2020.
BRAZILIAN SUPREME COURT DECIDES THAT MUNICIPAL LAWS ON DIFFERENT RATES ON THE PROPERTY TAX (IPTU) ARE NOT UNCONSTITUTIONAL: In an online judgment ended on 8 May 2020, the majority of the Brazilian Supreme Court (STF) Plenary declared “constitutional the municipal laws that applied different rates of Property Tax (IPTU) for built, non-built, residential and non-residential real estate in a period prior to Constitutional Amendment 29/2000. Extraordinary Appeal No. 666.156.
ABSENCE OF THE PRESUMED RIGHT TO CREDIT OF THE TAX ON MANUFACTURED PRODUCTS (IPI): Binding Caselaw No. 58 of the Brazilian Supreme Court (STF) was published on 7 May 2020. It deals with credits from the Tax on Manufactured Products (IPI) in transactions involving acquisition of assets taxed at a zero rate. According to the text, “there is no IPI tax credit presumed regarding the entry of exempt inputs – i.e. subject to a zero rate or non-taxable – and this does not contradict the principle of non-cumulative taxation.” Binding Precedent No. 58.