Brazil: COVID-19 | Tax And Customs Extraordinary Measures #4

As a result of the impacts caused by COVID-19, extraordinary measures are beginning to be held by the Federal, State and Municipal governments in relation to taxes collection, compliance with ancillary tax obligations and customs procedures simplification by the responsible entities.

Among the measures effectively adopted until today, we highlight the following:

• Federal Union

• SECEX Ordinance No. 20/2020: provides the extension for 30 days of the public consultation regarding the draft Ordinance about the drawback special regime.

• RFB Normative Instruction No. 1.929/2020: includes medical and hospital products in the list of products submitted to priority customs clearance.

• RFB Ordinance No. 601/2020: institutes the Customs Operational Center for Management of the Crisis ("Cogec-Covid-19") aiming to allow and monitor the customs activities necessary to attend social demands related to COVID-19.

• State and Federal District

• State Decree No. 42,105/2020: suspends administrative deadlines between State Public Administration from 03/23/2020 to 04/30/2020. The Decree also forbids the publication of decisions on first and second administrative level, as well the notification of the parties, with except to the urgent ones and to avoid the reach by state limitation periods.

• State Decree No. 19,568/2020: suspends administrative deadlines for filing opposition and other appeals on tax administrative proceedings from 03/23/2020 to 04/30/2020.

• State Decree No. 427/2020: exempts ICMS on import and acquisition operations of products or inputs needed to manufacture products used to prevent and combat COVID-19, as well as related transportation operations, as long as they are carried out with the specific purpose of donation to a governmental entity or an assistance entity until 06/30/2020.

• State Decree No. 639/2020: includes hygiene products in the list of the "basket products".

• State Decree No. 4,310/2020: deadlines suspended for 30 (thirty) days for acts in state administrative proceedings.

• State Decree No. 4,385/2020: the validity of tax clearance certificates was extended for 90 (ninety) days. State General Attorney authorized to suspend the enrolled tax credit collection and filing of Tax Foreclosures for 90 (ninety) days.

• State Decree No. 4,386/2020: deadlines extended in 3 (three) months for payment of ICMS calculated in Simples Nacional from March to May 2020.

• CCRF Provision No. 01/2020: suspends all deadlines related to administrative proceedings and trial sessions in CCRF.

• State Complementary Law No. 425/2020 and State Decree No. 8.866/2020: suspended until 04/30/2020 deadlines for acts in state administrative proceedings, as well as the counting of the respective statute of limitations terms.

• State Law No. 8,771/2020: includes hygiene products in the list of the "basket products".

• State Law No. 8.769/2020: suspends the deadline for filing the ancillary obligation and paying the ITCMD up to 60 days after the end of the Contingency Plan related to COVID-19 persists, as well as the related penalties for non-observance of the original deadlines.

• State Decree No. 47,002/2020: authorizes the oil and gas onshore industries operation during state of emergency related to COVID-19.

• State Decree No. 47,006/2020: suspends for 15 days administrative deadlines for filing opposition and other appeals between State Public Administration.

• SEFAZ Normative Instruction No. 01/2020: Court of Administrative Tax Appeals trial sessions suspended for 30 (thirty) days.

• State Decree No. 24.908/2020: the validity of the tax clearance certificates valid on 03/20/2020 was extended for 90 (ninety) days. During this period, state tax debts installments will not be canceled.

• State Decree No. 24.909/2020: the deadlines for ICMS payments of taxpayers that are typified by the listed CNAEs are extended in 7 (seven) months. This extension does not imply the right to a refund of amounts already paid.

• Joint Resolution No. 002/2020/CRE/SEFIN: suspends, until the last day of the second month following that in which the state of public calamity ends, the deadlines for (i) the practice of acts on tax administrative proceedings; (ii) compliance with ancillary obligation that demands personal attendance; (iii) compliance with the notifications accessed through the Fisconforme system, or those notified via DET, except for communications regarding the failure to comply with the deadline for sending EFD/ICMS/IPI; (iv) the submission of tax administrative proceedings for the purposes of criminal representation. TATE's judgment sessions and the obligation of prior inspection to comply with tax requirements are also suspended. It extends, by the same time, the Terms of Agreement that grant special regimes for a determined period, whose expiration occurs during the period of the public calamity period. These measures are not applicable to situations in which implies the statute of limitations of the tax credit or when it involves flagrant fiscal illicit or obstacle to the fight against COVID-19.

• State Decree No. 28.635-E/2020: The administrative process deadlines and the statute of limitation course were suspended for 15 (fifteen) days. These rules are not applicable in cases considered urgent or essential.

• State Decree No. 532/2020: suspends, during the emergency situation, the deadlines for (i) filing defense or appeal related to the administrative proceedings of tax credit constitution and collect of its fees; (ii) fine reduction related to the payment of taxes or tax installment request; (iii) cancellation CCICMS registry; (iv) compliance with ancillary obligations; (v) conclusion of the tax procedure set out in the Inspection Start Term; (vi) validity of tax clearance certificates. However, the suspension does not apply to the delivery of GIA-ST, DeSTDA, DIME and DEVEC.

• Act TIT No. 03/2020: suspends administrative deadlines related to tax administrative proceedings from 03/23/2020 to 04/30/2020.

• Municipal

• Municipal Decree No. 17.308/2020: Institutes the possibility of granting extraordinary installments to settle tax and non-tax credits due by the taxpayers reached by the closure of establishments resulting from the pandemic. Suspends, also for a period of 100 days: (i) new collection procedures; (ii) the forwarding of active debt certificates to protest registries; (iii) the establishment of procedures for the exclusion of overdue installments. Extends, for 100 days, the deadlines for complying with ancillary tax obligations related to the Tax on Services ("ISS").

• Municipal Decree No. 38/E/2020: suspends, for 30 days, the administrative proceedings deadlines. Extends the validity of tax clearance certificates  expired during the emergency period.

• Municipal Decree No. 7,850/2020: suspends, for 90 days, the deadlines in the administrative proceedings.

• Municipal Decree nº 471/2020: suspends, until 04/12/2020, the deadlines for administrative tax proceedings acts within the scope of the Municipal Revenue Office and the Municipal Attorney General's Office. This suspension is not applicable to the payment of taxes and other municipal debts. Extends, for 90 days, the validity of the tax clearance certificates valid until 03/20/2020.

• Municipal Ordinance No. 07/SMF/GAB/2020: suspends, between 03/17/2020 and 04/30/2020, the deadlines for administrative tax proceedings acts and the judgment sessions of the Administrative Tax Court of Florianópolis.

• Municipal Ordinance No. 08/SMF/GAB/2020: extends, for 30 days, the validity of all certificates issued by the Municipal Revenue Office, which expired after 03/16/2020 and could not be updated or obtained at the city hall website, including tax clearance certificates.

• Municipal Decree No. 849/2020: suspends, while the public calamity persists, the deadline of the defenses and appeals of administrative proceedings, as also the sessions of judgment bodies. 

• Municipal Decree No. 1,698/2020: suspends, for an undetermined period, the deadlines of the administrative proceedings.

• TART Statement No. 01/2020: suspends the judgment sessions that were scheduled until 03/31/2020 at the Administrative Court of Tax Appeals ("TART") and interrupts the publication of new sessions schedule.

• TART Statement No. 02/2020: suspends, for 30 days, the deadlines for filing appeals and the manifestation of the parties in diligences and against any appeals filed before TART.

• Comunicado TART nº 02/2020: suspende, por 30 (trinta) dias, os prazos para interposição de recursos e de manifestação em diligências e das partes em recursos no âmbito do TART.

• Municipal Decree No. 16,613/2020: extends, until 05/31/2020, both the tax clearance certificates issued until 03/26/2020 and the lump sum payment date of IPTU. It also extends the ISS payment date under the scope of Simples Nacional, as follows: regarding the periods of March, April and May, the payment dates will be 10/20/2020, 11/20/2020 and 12/21/2020, respectively.

• Decree of the Presidency/CRF/PMPV No. 02/2020: suspends, for 15 days, the trial sessions of the Council of Tax Appeals ("CRF"). The deadlines for filling administrative appeals before CRF are also suspended during the state of calamity.

• Provimento da Presidência/CRF/PMPV nº 02/2020: Suspende, por 15 (quinze) dias, as sessões de julgamento no Conselho de Recursos Fiscais ("CRF"). Também estão suspensos, enquanto perdurar o estado de calamidade, os prazos para apresentação de recursos administrativos tributários no âmbito do CRF.

• Joint Ordinance No. 20/2020: suspends, until 04/30/2020, the deadlines of administrative tax proceedings acts, except in case of statute of limitations. This suspension is not applicable to the decay or prescription of the tax credit.

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This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.