CREATION OF THE NATIONAL SUPPORT PROGRAMME FOR MICRO AND SMALL COMPANIES: the Law creating the National Support Programme for Microenterprises and Small Businesses (Pronampe) – aiming at strengthening and developing small businesses during the Pandemic through the creation of a credit line – was published on 19 May 2020. Such Law determines that the value of loans will be up to 30% of the company’s annual gross revenues in 2019. Law No. 13,999 of 18 May 2020.
BRAZILIAN FEDERAL SUPREME COURT MAINTAINS DISCOUNT ON CONTRIBUTIONS TO THE “S” SYSTEM: on 18 May 2020, a decision was published suspending the injunction granted by the Brazilian Federal Regional Court-1 (TRF-1) and maintaining: (i) the 50% discount on the rates collected by companies for autonomous social services (the “S System”), as well as (ii) the increase from 3.5% to 7% in the rate charged by the Brazilian Federal Revenue when collecting such contributions. Suspension of Security No. 5381.
ORDINANCE DETERMINES CONDITIONS AND PROCEDURES FOR CONSIGNMENTS: Ordinance No. 209 – published on 15 May 2020 – determines conditions and procedures related to consignments, such as the registration and qualification of consignees, the control of consignable margin, the reception and processing of consignment operations, the cancellation of consignment, as well as its temporary deactivation, among others. Ordinance No. 209 of 13 May 2020.
BRAZILIAN FEDERAL SUPREME COURT DENIES THE RELEASE OF JUDICIAL DEPOSIT DUE TO THE PANDEMIC: A decision by Justice Luiz Fux was published on 15 May 2020, denying the taxpayer’s request for replacement of the judicial deposit by guarantee insurance, in a proceeding filed to discuss the collection of taxes related to social contribution. Extraordinary Appeal No. 123911 in the Brazilian Supreme Court.
LEGAL REGIME OF PRIVATE LAW RELATIONS IN THE PANDEMIC: On 14 May 2020, the House of Representatives approved the Bill 1179/2020, which determines emergency and transitory rules to regulate private law legal relations, such as contracts, consumer relations, family law and relations between condominium members, while events arising from the coronavirus pandemic remain in effect. Bill No. 1179/2020.
BRAZILIAN FEDERAL SUPREME COURT RULES ON THE HINDERING OF THE TAX ON THE CIRCULATION OF GOODS AND SERVICES (ICMS) IN IMPORTATION: on 12 May 2020, an Appellate Decision was published determining the jurisdiction to charge upon the taxpayer acquiring goods from abroad the Tax on the Circulation of Goods and Services (ICMS) on Importation. This jurisdiction was established to the State where the taxpayer is established and – in cases where such operations have been carried out on behalf and by order of a third party – to the jurisdiction of the State where the client has its establishment. Extraordinary Appeal No. 665134 in the Brazilian Supreme Court.
SUSPENSION OF REGISTRATIONS IN THE REGISTER OF DEFAULTERS: On 12 May 2020, the Federal Senate approved a Bill that suspends retroactively and forbids new registrations in debtors’ registers starting on 20 March 2020, the date on which the state of public calamity in the country was decreed. Bill No. 675/2020.
BRAZILIAN SUPERIOR COURT OF JUSTICE ALLOWS PROOF OF CLAIM IN BANKRUPTCY AND TAX ENFORCEMENT ACTIONS: On 12 May 2020, the 3rd Panel of the Brazilian Superior Court of Justice (STJ) unanimously handed down an Appellate Decision allowing the National Treasury to qualify for a tax credit in bankruptcy proceedings in which tax enforcement has already been filed for the respective collection. Therefore, the Panel ruled out any possibility of double taxation alleged by the taxpayer. Extraordinary Appeal No. 1857055 in the São Paulo’s Superior Court of Justice.
MAINTENANCE OF THE RELATIONSHIP WITH THE CORPORATE HEALTH INSURANCE AFTER TERMINATION OR SUSPENSION OF THE EMPLOYMENT CONTRACT: On 13 May 2020, a Bill was presented in the Federal Senate that ensures to employees the right to maintain their relationship with corporate health insurance, for a period of one year, in the event of termination or suspension of their employment contracts during the Pandemic. Bill No. 2,631/2020.