Clipping “COVID-19” – 05.22.2020

  • 22 May, 2020 -

COVID-19 COMBATING MEASURES: On 20 May 2020, a Provisional Measure was published opening extraordinary credit in the amount of ten billion reais in favour of the Ministry of Health. This credit will be destined for specialised actions against the Pandemic. Provisional Measure No. 969, of 20 May 2020.

INCLUSION OF COVID-19 IN LIFE AND HEALTH INSURANCES COVERAGE:   The Federal Senate approved on 20 May 2020 the Bill that includes – in the coverage of life insurance and health plans – deaths resulting from the new coronavirus. The bill determines that the insurance cannot increase the amount of the premium paid as a result of such coverage. In addition, it is prohibited for the operators of those insurances to suspend or cancel the contracts due to non-payment, until 31 December 2020. The matter continues for analysis by the House of Representatives. Bill No. 2113/2020.

BRAZILIAN FEDERAL SUPREME COURT APPROVES AGREEMENT BETWEEN THE FEDERAL GOVERNMENT AND STATES ON THE “KANDIR” LAW:    The Brazilian Federal Supreme Court (STF) – in session of 20 May 2020 – ratified an agreement between the Federal Government, the States and the Federal District, regulating the compensation for tax losses resulting from the exemption of exports from Tax on the Circulation of Goods and Services (ICMS). Such agreement foresees that the Federal Government shall pass on at least BRL 65 billion reais to the federal entities in up to 17 years. Unconstitutionality Direct Action for Omission No. 25.

PROPOSAL TO CIRCUMVENT THE “GOLDEN RULE”:  The Brazilian National Parliament  voted on 21 May 2020 the proposal of supplementary credit in which the Executive Branch requests authorization to pay, through debt, current expenses of approximately R$ 343 billion, foreseen in this year’s budget. The proposal was approved and continues for presidential sanction. National Congress Bill No. 8/2020.

REDUCTION OF IMPORT TAX RATES ON INFORMATICS AND TELECOMMUNICATION GOODS:   On 21 May 2020, a Resolution was published changing the Import Tax rates on computer and telecommunication goods (under the condition of former tariffs) to 0%. Resolution No. 48, of 19 May 2020.

LEGAL REGIME OF PRIVATE LAW RELATIONS IN THE PANDEMIC:  on 19 May 2020, Bill No. 1179/2020 was approved in the Federal Senate, changing the legal relationships of Private Law during the Pandemic. The senators decided to maintain the text approved by the House of Representatives, as well as, approved a highlight that anticipates the effectiveness of the Brazilian General Data Protection Regulation (LGPD) to August 2020. Bill No. 1179/2020.

BRAZILIAN SUPERIOR COURT OF JUSTICE DECIDES THAT GUARANTEE-INSURANCE SHOULD BE ACCEPTED AS MONEY:  on 20 May 2020, the 3rd Panel of the  Brazilian Superior Court of Justice (STJ) reaffirmed the understanding that guarantee insurance produces the same legal effects as money and should be accepted as such, regardless of previous lien.  Extraordinary Appeal No. 1838837 in the São Paulo’s Superior Court of Justice.

MANDATORY WEARING OF MASKS THROUGHOUT THE COUNTRY:   On 19 May 2020, the House of Representatives approved a Bill that demands the use of a mask throughout the Brazilian territory, while the Pandemic persists. If approved, the masks will be mandatory for the circulation of people in public and private spaces, as long as they are accessible to the public. Furthermore, the Bill determines that Public Agencies and companies that serve the public will be obliged to provide masks to their employees. The matter goes to the Senate. Bill No. 1562/2020.

BRAZILIAN SUPERIOR COURT OF JUSTICE DENIES INCIDENCE OF WITHHOLDING INCOME TAX ON REMITTANCES ABROAD:    on 19 May 2020, the 1st Panel of the  Brazilian Superior Court of Justice (STJ) unanimously decided that Withholding Income Tax (IRRF) should not be levied on amounts sent by a Brazilian company to a service company that has no permanent establishment in Brazil. Extraordinary Appeal No. 1618897 in the São Paulo’s Superior Court of Justice.

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