In face of the serious economic crisis that is shaping up and gaining momentum in Brazil, due to the COVID-19 pandemic, the federal government seeks economic measures that are capable of dealing with the challenges imposed by the current scenario.
Bruno Zaroni, partner of Zaroni Advogados, draws attention to the expressive number of tax policies edited by the government, whose main objective, in the attorney’s words, is not fiscal, but revenue, outside the scope of taxes, in other words, aimed at preserving jobs and economic activities while the public disaster scenario is in place, acknowledged by Decree 6/2020.
Therefore, some of the main measures adopted by the Government are: (i) Decree nº 10,305/2020 provides reduction to zero of the tax on Financial Operations (IOF) for three months, from April 03 to July 03, 2020; (ii) Ordinance 139/2020 extends the deadline for payment of federal taxes for the period from March to April 2020; (iii) PLC 72/2020 proposes the suspension of the ICMS tax substitution regime until the state of public calamity state caused by COVID-19 is in place; (iv) Resolution 152/2020 postpones, for 90 days, the deadline for collection of ICMS and ISS within the scope of Simples Nacional; (v) Provisional Measure 932/2020 determines a 50% reduction in contributions due by companies to the “Sistema S”, for the period between April 01 and June 30, 2020.
Bruno Zaroni also points out to a change in the legal understanding of Courts during the crisis period, caused by the pandemic scenario. The Zaroni Advogados partner believes this change is an attempt of the Brazilian Legal power to suit legal procedures to the current economic and social scenario. Therefore, some of the main legal measures adopted are: (i) substitution of cash deposits for insurance guarantees in legal lawsuits; (ii) extension of ICMS payment deadlines, in addition to suspension of installments; (iii) suspension of tax credits during the crisis period generated by COVID-19.
Bruno Zaroni is a founding partner of Zaroni Advogados.