COVID -19 | Tax and Customs Extraordinary Measures in Brazil

As a result of the impact of COVID-19, the federal, state and municipal governments are adopting extraordinary measures in relation to tax collection, compliance with ancillary tax obligations and simplified customs procedures.

Among the measures effectively adopted this week, we highlight the following:

Federal Government

• PGFN Decree No. 7,820/2020: establishes extraordinary tax settlements in the collection of the federal government's enrolled debt, which will involve up to 81 payment installments (97 for individuals, individual entrepreneurs, and micro and small businesses), with a down payment, lump sum or three installments equivalent to one percent of the total debt. The application deadline is March 25, 2020.
• PGFN Decree No. 7,821/2020: imposes restrictions on face-to-face services and suspends, for 90 days, the deadlines for (i) administrative defense; (ii) appeal against a decision made in the Administrative Procedure for Recognition of Responsibility - PARR; (iii) defense of non-conformity; (iv) appeal against the decision rendered in the exclusion process from the Special Tax Amnesty Program – PERT; (v) early offer of guarantee in tax execution; (vi) Request for Review of Registered Debt - PRDI and appeal against the decision that rejects it. In addition to the terms, the following activities were also suspended for 90 days: (vii) submission to protest against overdue liabilities certificate; (viii) establishment of new Administrative Procedures for Recognizing Liability - PARR; and (ix) initiation of procedures for the exclusion of taxpayers from installments managed by the Attorney General's Office of the National Treasury due to lack of installment payment.
• Ministry of Economy Decree No. 103/2020: authorizes the Attorney General of the National Treasury to (i) suspend for 90 days the deadlines for administrative defenses; introduction of new collection processes; forwarding of overdue liabilities certificates for extrajudicial protest; and establishment of a procedure for exclusion of installments due to payment delay; (ii) offer a proposed tax settlement through adhesion related to enrolled debts: down payment of at least one percent of the total debt amount, with deferred payment from the other installments for 90 days (maximum term of up to 84 months or up to 100 months for individuals, individual entrepreneurs, and micro and small businesses, as well as the other conditions and limits established in Provisional Measure No. 899/2019).
• Resolution No. 17/2020: reduces to zero the import tax rates of medical and hospital products used to combat the COVID-19 pandemic.
• Normative Instruction No. 1,927/2020: simplifies customs clearance on the import of listed medical and hospital products, including the delivery of goods before the conclusion of the customs conference and the priority in the procedure of import declarations.
• Resolution No. 152/2020: provides an extension of the payment deadline for federal taxes under the Simples Nacional tax regime related to the following periods: (i) March 2020, which will be due by October 20, 2020; (ii) April 2020, which will be due by November, 2020; and (iii) May 2020, which will be due by December 21, 2020.

Municipal

Rio de Janeiro

• Decree No. 47,264/2020: suspends the deadline for filing administrative defense and compliance with requirements and for the procedure to cancel municipal registration; extends, for 60 days, the tax clearance certificate related to Tax on Services ("ISS") and fees, as long as it was valid on March 18, 2020; and determines virtual service of tax duty to clarify doubts about tax obligation.

Other measures are being studied by the federal government, states and municipalities, and it is expected that new changes in tax law will be published soon, with the possibility of extending the term for paying taxes and complying with ancillary obligations.