BRAZIL REVENUE OFFICE (RFB)

Federal Taxes.

The deadlines for the payment of Social Security Contribution (employer and equivalent), Contribution to PIS / PASEP and COFINS related to the competences of March, April and May 2020 were extended. These contributions must be paid on the due date of contributions owing in July, September and October 2020, respectively (Ordinance No. 139, dated April 3rd, 2020 and Ordinance No. 245, dated June 15, 2020). The deadlines for filing the Federal Tax Debt and Credit Declaration (DCTF) and the Digital Tax Bookkeeping of the Contribution to PIS / Pasep, COFINS, and the Social Security Contribution on Revenue (EFD-Contributions) were also extended.

Decree No. 10.305, dated April 1st, 2020, zeroed the IOF rate for all credit operations contracted between April 3rd, 2020 and July 3rd, 2020.

In addition, the Provisional Measure 952/2020 postponed the deadline for payment of the Inspection and Operation Fee (TFF), the Condecine and the Contribution for the Promotion of Public Radio Broadcasting (CFRP) to 08.31.2020 or the installment payment of such taxes, in 05 monthly and successive installments, the first being due on 08.31.2020.

Ancillary Obligations.

The deadlines for filing the Federal Tax Debt and Credit Declaration (DCTF) and the Digital Tax Bookkeeping of the Contribution to PIS / Pasep, COFINS, and the Social Security Contribution on Revenue (EFD-Contributions) were also extended. The DCTF and EFD-Contributions to be transmitted in April, May, and June 2020 may be sent until the 15th (fifteenth) and 10th (tenth) working day of July 2020, respectively (Normative Instruction RFB No. 1.932, dated April 3rd, 2020).

The deadline for delivery of the Digital Accounting Bookkeeping (ECD) was also extended, to 07.31.2020 (Normative Instruction RFB No. 1.950, dated May 12, 2020).

Taxpayer service.

Ordinance RFB No. 543/2020, subsequently extended by the Ordinance RFB No. 936/2020suspended, until May 29th, 2020 the deadlines for all acts in administrative proceedings in the Revenue Office and the following procedures: (i) electronic automated issuance of a notice of indebtedness and request of payment of taxes; (ii) notice of infringement by the department of income tax information crossover, regarding physical persons; (iii) exclusion of taxpayer from installment plan due to indebtedness; (iv) register of remark in the Physical Persons Registry (CPF) deriving from fail to deliver Income Tax Form; (v) register of a statement in the Legal Persons National Registry (CNPJ) deriving from fail to deliver Income Tax Form; and (vi) electronic issuance of judgment dispatch containing the analysis of Requests of Restitution, Refund or Reimbursement, and Declarations of Offset.

The procedures excepted from the suspension were (i) the special procedure of verification of origin of resources applied in foreign trade operations, of fight against fraudulent interposition of persons, and against smuggling and contraband, and (ii) other necessary procedures for the detection of fraudulent conduct in the form of fiscal infringements and acts that hinder the fight against Covid-19.

The taxpayer service in the Revenue Office’s units will be made only by previous scheduling and will be limited to (i) the regularization of register in the CPF; (ii) request of copy of Income Tax Forms previously delivered; (iii) application of installment plan, when not available through the internet; (iv) RFB power of attorney; and (v) filing of specific proceedings.

Certificates.

Joint Ordinance No. 555, of 03.23.2020 extended for 90 (ninety) the validity of federal clearance certificates (CND and CPEN), valid on March 24th, 2020.

Installments.

The Ordinance No. 201, of 05.11.2020, and the Resolution CGSN No. 155, of 05.15.2020, extended the maturity date of the monthly installments related to the installment programs administered by the Special Secretariat of the Federal Revenue of Brazil (RFB) and by the Attorney General’s Office (PGFN) (including installments within the scope of Simples Nacional).

As a result, the installments due in May, June and July 2020 are extended until the last business day of August, October and December 2020, respectively.

ADMINISTRATIVE COURT OF TAX APPEALS (CARF)

Ordinance No. 10,199, of April 20th, 2020 suspended until 05.29.2020 the deadlines for all acts in the proceedings, including judgment sessions scheduled for the period. The suspension does not affect the Extraordinary Judgment Groups’ virtual judgments, except for the cases in which requests for oral speech were presented. These judgements will be subject to the rescheduled of the judgement after the resumption of sessions.The videoconference judgments were regulated under Ordinance No. 10,786, of April 28th, 2020

ANNUAL INCOME TAX RETURN – DIRPF 2019/2020

Normative Instruction RFB No. 1.930, dated April 1st, 2020, extended the deadline for submission of the Annual Income Tax Adjustment Statement for the fiscal year 2020, calendar year 2019, by the individual resident in Brazil to June 30th, 2020. The legislation has also revoked the obligation to inform the receipt number of the last statement submitted.

CONTRIBUTION TO FGTS

Provisional Measure (MP) No. 927, of 03.22.2020 suspended the enforceability of the FGTS payments by employers concerning March, April and May of 2020, with maturity in April, May and June, respectively, which can be paid as from July in up to 6 (six) installments.

This suspension is valid for all companies and does not depend on prior formal adhesion, but the employer is still subject to declare, until the 7th of each month, via “e-Social” or “Conectividade Social”, the information on the payments in installments.

Payments made in installments will not be subject to monetary updating, fines and interest. Unreported amounts, on the other hand, will be considered overdue, requiring full payment, plus monetary updating, fines, and interest, and the installments declared due will be regarded immediately collectible.

The Caixa Economica Federal regulated the procedures relating to the temporary suspension of the FGTS in Circular CEF No. 893, of 03.24.2020.

SOCIAL CONTRIBUTIONS TO S SYSTEM

Provisional Measure No. 932, dated March 31, 2020, subsequently extended by the Act of the Chairman of the National Congress No. 40/2020, reduced by 50% the rates of the social contributions owed by employers to the autonomous social services (S System), until 08/29/2020, as per below:

Entity Tax rate before MP Tax rate after MP
SESCOOP 2.5% 1.25%
SESI, SESC and SEST 1.5% 0.75%
SENAC, SENAI and SENAT 1% 0.5%
SENAR (payroll) 2.5% 1.25%
SENAR (rural production – legal entity) 0.25% 0.125%
SENAR (rural production – individual) 0.2% 0.1%

Legislation also established that the remuneration owed to the Federal Revenue Office as a result of the collection of contributions will be doubled from 3.5% to 7%.

SIMPLES NACIONAL

Resolution CGSN No. 154, dated April 3rd, 2020, extended for 6 (six) months the deadline for payment of federal taxes owed in the Simples Nacional special regime, including all federal taxes, ICMS and ISS, as follows:

Assessment Period Original Payment Deadline New Payment Deadline
march/20 04.20.2020 10.20.2020
april/20 05.20.2020 11.20.2020
may/20 06.22.2020 12.21.2020

Such resolution revoked the Resolution No. CGSN No. 152, of 03.18.2020, which had initially disciplined the extension of the deadlines, but without including ICMS and ISS.

Still concerning the Simples Nacional, the Resolution CGSN No. 153, dated 03.25.2020, extended until June 30th, 2020, the deadline for the presentation of the Declaration of Socioeconomic and Fiscal Information (Defis) and the Annual Simplified Declaration for the Individual Micro entrepreneur (DASN-Simei) related to the 2019 calendar year.

GOODS ESSENTIAL TO THE FIGHT AGAINST THE CORONAVIRUS

The Executive Management Committee of the Chamber of Foreign Trade adopted some measures aiming to facilitate both the import and control of the export of goods essential to the fight and prevention against the coronavirus. Among them are:

PGFN – RENEGOTIATION OF DEBTS, SUSPENSION OF CHARGES AND TAXPAYER SERVICE:

Federal Debts Enrolled for Enforcement, of Tax Nature or Not. Ordinance PGFN No. 9,924, of 04.14.2020, established established conditions for the settlement of overdue debts enrolled for enforcement, involving (i) down payment corresponding to 1% of the total amount of the debt transacted, which can be paid in up to three months (March, April, and May); and (ii) payment of the balance in up to 81 (eighty-one) months, in the case of legal entities, or up to 142 (one hundred and forty two) months in the case of individuals, micro-companies or small businesses. The deadline for the adhesion to the Transaction Agreement remains open until June 30, 2020. You may find more information here.

Suspension of Collection Procedures.

Ordinance PGFN No. 7,821, of 03.19.2020 suspended, for 90 days, the deadlines for (i) presentation of impugnation and appeal against a decision issued under the Administrative Procedure for Recognizing Responsibility (“PARR”); (ii) presentation of manifestation of nonconformity and appeal against the decision to be considered in the scope of the exclusion process of the Special Tax Regularization Program – Pert; and (iii) advance offer of guarantee in tax foreclosure, submission of Request for Revision of Registered Debt – PRDI and appeal against the decision that rejects it. Even with the deadlines suspended, taxpayers will be able to manifest themselves as usual, through the REGULARIZE portal.

The following administrative collection measures are also suspended for 90 days: (i) presentation of protest to debts enrolled for enforcement certificates; (ii) prosecution new Administrative Procedures for Recognizing Responsibility – PARR; and (iii) the initiation of procedures for the exclusion of taxpayers from installments administered by the Attorney General’s Office for the payment of installments.

Taxpayer Service.

The service to taxpayers is being provided in a telepresent manner, by telephone, electronic address (e-mail) or videoconference channels available on the Internet, and the physical displacement of taxpayers to PGFN units should only occur when strictly necessary and after previous scheduling through the telepresence channel.