Government measures in key jurisdictions 5th edition - Flipbook - Page 20
Brazil
Litigation
Are the courts
operating?
Tax
Has any new
legislation been
introduced in light
of Covid-19?
Most Brazilian Courts are operating through remote work and virtual proceedings, including the
Supreme Court and the Superior Court of Justice. The virtual operation of Brazilian Courts is
working really well: according to data provided by the Brazilian National Council of Justice,
Brazilian Courts are not only maintaining their activities during the pandemic, but are also
improving their productivity. This was possible because proceedings that were filed in the past
few years in most Brazilian Courts have digital case records, that can be accessed by court staff,
lawyers and parties through a website, in which lawyers can also file the petitions. The contact
with most judges and Clerk’s offices can be made by telephone, e-mail or videoconference
during the pandemic and many trials are being held online. Thus, the closure of courthouses over
the country due to the pandemic mainly affected (i) the proceedings that do not have digital case
records, that have their deadlines suspended and (ii) some acts that cannot be performed
virtually (for example, appraisal of real estate, some trials, some attachment orders).
The pandemic outbreak triggered tax measures to attend the private sector in different
spheres. It is worth pointing out the following measures adopted by Brazilian Federal
Government mostly for the year 2020:
(i) Throughout 2020 the government reduced to a zero rate several import taxes such as
federal value-added tax on industrialized products (IPI), taxes on gross revenues (PIS/COFINS)
and on gross revenues on importation (PIS/COFINS-Importation) mostly related to goods
aiming at combating the pandemic resulted from the Covid-19. Most of the temporary benefits
were valid only until the beginning of 2021, when the government re-established the previous
tax treatment. (ii) Zero rated the tax on financial transactions (IOF) on loans of any nature
contracted until December 31st, 2020. (iii) Rates of social security tax destined to associations
(Sesi, Senai, Senac among others) were reduced. (iv) Deferral of payment for certain federal
taxes (e.g., employee’s severance fees (FGTS), PIS/COFINS, social security taxes, and taxes on
telecommunications services), payment deferral for pending tax instalments and
postponement of deadlines to submit certain tax returns by individuals & corporations. (v)
Suspension of procedural deadlines at the Federal Revenue Service (RFB) and at federal
administrative tax court. Recently, it was ruled procedures enabling online/remote voting for
judgment of federal tax proceedings in specific situations. (vi) Simplification of some customs
clearance procedures and ancillary obligations (e.g. the validation of tax clearance certificates
for ninety days). (vii) Suspension of acts by the General Attorney’s office. (viii) Approval of new
rules encouraging renegotiation of federal tax debts.
Specific local measures were also introduced by some States and municipalities. However,
there are glaring disparities between the measures from twenty-seven States and being even
less uniform among the more than 5,000 Brazilian cities. In this sense, it is worth pointing out
the following:
(i) Some states granted exemption or reduction of State Value Added Tax (ICMS) on import
and internal transactions with goods aiming at combating the pandemic resulted from the
Covid-19 (e.g. Rio de Janeiro, Santa Catarina, Maranhão). (ii) Regarding donations transactions:
(i) most of Brazilian States granted exemption of ICMS on the remittance of goods aiming at
combating the pandemic resulted from the Covid-19 to the public administration or to nonprofit assistance entities, and (ii) a few states granted exemption of tax levied on donations
(ITCMD) to the public administration (e.g. Ceará and Espírito Santo) or to hospitals (e.g. Minas
Gerais). (iii) Deferral of payment for certain taxes in some states and municipalities (e.g. ITCMD
in Rio de Janeiro and Amazonas; municipal tax levied on services for specific activities in
Recife and Cuiabá). (iv) Payment deferral for pending tax instalments (e.g. Rio de Janeiro) and
postponement of deadlines to submit certain tax ancillary obligations (e.g. ITCMD in Goiás). (v)
Suspension of certain tax executions registered as an overdue liability (dívida ativa), e.g. São
Paulo. (vi) Suspension of procedural deadlines at state and municipal administrative tax
courts. Recently, in some states and municipalities, it was ruled procedures enabling
online/remote judgment.
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Government measures in key jurisdictions
