As is common knowledge, the current scenario is one of great instability due to the measures taken to contain the spread of the Coronavirus.
Considering the potential economic consequences caused by the pandemic, it is important to be aware of tax measures which could reduce impacts on taxpayers' cash flow.
In this context, we prepared a summary and the main measures recently published by the government.
MEASURES ADOPTED BY THE FEDERAL GOVERNMENT
i. Extension of the validity of Debt Clearance Certificates
Joint Ordinance No. 555 of 2020 extended the validity of Debt Clearance Certificates relating to Federal Tax Credits and Active Debt of the Union (CND) and Positive Certificates with Negative Effects of Debts relating to Federal Tax Credits and the Union's Active Debt (CPEND).
In this way, certificates valid until on March 24, 2020, date of publication of the ordinance, are extended for another 90 (ninety) days.
ii. Suspension of debt collection and renegotiation acts by PGFN
The Ministry of Economy authorized the Attorney General of the National Treasury (“PGFN”), through Ordinance No. 103/2020, to suspend collection acts and facilitate debt renegotiation. This act is guided by Provisional Measure No. 899/2019 and will only be valid, in principle, for as long as it remains in force, that is, until March 25, 2020.
PGFN Ordinance No. 7.821/20 suspended for 90 (ninety) days:
- The deadlines for taxpayers to present (i) objection or appeal against a decision made within the scope of the Administrative Procedure for Recognition of Responsibility (“PARR”), (ii) manifestation of non-compliance and appeal against a decision that excludes the company from PERT and (iii) advance offer of guarantee in tax foreclosure and request for review of registered debt and deadline for appeal against decision rejecting the requests.
- The establishment of new charging procedures.
- Forwarding active debt certificates (“CDA”) to protest notary offices.
- The establishment of procedures for the exclusion of late installments.
Furthermore, PGFN Ordinance No. 7.820/20 established easier conditions for renegotiating debts through extraordinary transactions, applicable to debts registered in the Union's Active Debt. The main advantages of the program are:
- Entry corresponding to 1% of the total amount of debts, divided into up to 3 equal and successive installments;
- Installment of the remaining amount over up to 57 months, for social contributions levied on payroll, revenue or billing;
- Installments in up to 81 months for other taxes; It is
- Postponement of payment of the first installments until June 30, 2020.
Requirement: withdrawal of actions, objections or appeals relating to the credits transacted, with the presentation of a request for extinction of the respective process with resolution on the merits.
Deadline for joining: It ends, in principle, on March 25, 2020, as it is linked to the validity of MP 899/2019. However, considering that the Presidency of the Republic is releasing new provisional measures on relevant matters linked to Covid-19, it is possible that a new rule will be issued in accordance with the provisions of the Legal Taxpayer MP and, consequently, the Ordinances would also be updated to enforce the conditions.
iii. Extension of the deadline for the due date of federal taxes under Simples Nacional
Resolution No. 152/2020 extended the due dates for federal taxes (IRPJ, IPI, CSLL, PIS/COFINS, Employer Social Security Contribution) calculated under the Simples Nacional in the months of March, April and May 2020. The new due dates due date are:
- October 20, 2020, for the March 2020 Calculation Period, with original due date on April 20, 2020.
- November 20, 2020 for the April 2020 Calculation Period, with original due date on May 20, 2020.
- December 21, 2020 for the May 2020 Calculation Period, with original due date on June 22, 2020.
This extension, however, does not concern ICMS and ISSQN (due to States and Municipalities) calculated through Simples Nacional.
iv. Extension of the deadline for adhering to the Transaction Agreement provided for in Notice No. 1/2019
The PGFN extended the deadline for adhering to Notice No. 1/2019, which makes public proposals for adhering to the transaction in the collection of the Union's active debt, to March 25, 2020.
This notice offers discounts that can reach 50% for the option of paying in a single installment and with a term of up to 84 months. In the case of individual debtors, micro-enterprises and small companies, the discount for a single installment can reach 70% and the payment term can reach 100 months. Social security debts, in turn, have a maximum term of 60 months.
v. Reduction of System S contributions
The federal government announced that it will grant a 50% reduction to contributions destined to System S (Senai, SESI, SENAC, SESC, SEBRAE, SENAR, SEST, SENAT, SESCOOP), levied on the payroll. The measure has not yet come into force, but it is expected to be granted soon, and should reduce the collection for the next three months.
saw. Deferral in the payment of FGTS by employers
Provisional Measure No. 927/2020 suspended the deadline for collecting the amount corresponding to the FGTS for the months of March, April and May 2020. Furthermore, the payment for these months can be carried out in installments, without the need for updating the fine and expected charges. This payment must be paid in up to six monthly installments, due on the seventh day of each month, starting in July 2020.
To take advantage of this prerogative, however, the employer must declare the information by June 20, 2020.