Due to the measures of social distancing and restrictions on circulation of people and goods to control the pandemic of Covid-19, the Brazilian government has adopted measures to mitigate the economic impact of this disease. We can mention, as an exemple of such measures:

• Federal Emergency Aid for micro entrepreneurs and informal workers (Popular credit): The Federal Law 13.982/20 provided an Emergency Aid of BRL 600,00 for micro entrepreneurs and informal workers for a 3- month term. This Aid can reach BRL 1,200.00 (maximum of two single auxiliary aid) with more than one person in the family unit.

• Compensatory labor aid and tax exception of the amount received (Popular credit/Tax): The Provisional Measure 936/20 provides for a labor aid. It also provides an indemnity nature of the amount received as this labor aid, being tax excepted.

• Postponing of the financial forms of Publicly Traded Companies (Corporate / Capital Markets): The Brazilian Securities Commission (“CVM”) has published the CVM Resolution 849/20, postponing, exceptionally to the exercise of 2020, the deadlines of the presentation of documents and forms of Publicly Traded Companies. The main changes are: i) Annual Financial Statements regarding the last quarter of 2019- was postponed to March 31^st, 2020; ii) Annual Financial Report, 6 months after the conclusion of the fiscal year; iii) Postponing of 45 days to the Quarter Report of the first quarter of 2020 from the fiscal year of 2020; iv) Reference form, Standardized Financial Statements and Form regarding the Corporate Management postponed for a period of 2 months; v) Authorization of convening the Annual Shareholders Meeting, whether annual or extraordinary, by videoconference during the fiscal year of 2020. For further information, click here

• Temporary exception of IOF on loans operations (Tax): The Decree 10.305/20 has determined the reduction to zero of the tax rates of the IOF levied on loans until July 3^rd to all loans operations.

• Extension in the suspension in JUCESP’s activities: The State Decree nº 64.953/2020 extends the term of suspension in the activities of the Commercial Registry of the State of São Paulo (“JUCESP”) to May 10, authorizing the agency to maintain its online services, which includes incorporation companies via electronic forms through the VRE system, search for company’s names, issuance of digitalized documents and certificates.

• New regulation of digital documents (Administrative/Notarial): The Decree 10.278/20 provided that for a digitalized be equivalent to a physical document for all legal purposes and for the proof of any act before a legal entity under internal public law must: be digitally signed with digital certification in the Brazilian Public Key Infrastructure (ICP-Brasil) standard, in order to guarantee the authorship of the digitization and the integrity of the document and its metadata; follow the minimum technical standards provided; and, contain at least the specified metadata.

• Temporary reduction of the Social Contribution to “S” System (Tax): The Provisional Measure 932/20 has determined the temporary reduction by half, until the end of June, of the tax rate of the Social Contribution to the “S” System, between 0,1% to 1,25% depending on the activity of the company. For further information, click here

• Suspension of tax payments under the DRAWBACK: The Provisional Measure n. 960/2020 extended the suspension deadlines for payment of taxes provided for in the special drawback regime, being applied to the Tax on Manufactured Products (IPI), PIS/, COFINS, PIS-Import and COFINS-Import on the acquisition in domestic market or import of goods for use or consumption in the manufacture of the product to be exported.

• Mitigation of Side Effects of the measures to control the Pandemic of Covid-19 to the Electric Sector (Infrastructure): The Federal Government created the Provisional Measures 949/2020 and 950/2020 which will subsidize for three months 100% the electricity bill of low-income consumers. In addition, is going to be provided, by the Energy Development Account, funds to power distributors, through a tariff charge, to allow the amortization of financial transactions linked to measures to cope with the pandemic.

• Postponement of the Data Protection General Act (Legislative): Bill 1.179/20 was approved by the Senate, pushing back the date for the Data Protection General Act (Law 13.709/18; DPGA) to go into effect only in 2021.

• Flexibilization of the cargo air transportation rules (Infrastructure/Aviation): The Normative Ruling of the Brazilian Civil Aviation Agency n. 880/SPO concedes exceptional authorization to carry out air cargo without the prior consent for 180 days.

• Protection of financial transactions via credit cards (Administrative/Banking): The Provisional Measure No. 930/20 established measures to provide protection of the amounts destined to the settlement of payment transactions done by credit cards.

• Provides for the cancellation of events due to the state of public emergency (Consumer): The Provisional Measure n. 948/20 provides for the absence of an obligation to reimburse consumers in the event of cancellation of services that occurred due to the state of public emergency related to the Covid-19 pandemic if the service is rescheduled or is granted a credit to be used in the future.

• Assurance of the port operations during the Pandemic of Covid-19 (Infrastructure/Port): Provisional Measure No. 945/20 established rules to ensure the safety of port sector workers in essential services, expanding guarantees that port operations will not be affected by the current Covid-19 crisis.

• Temporary reduction of the tax burden of medical goods (Tax/Anti-dupimg): In order to reduce to costs of medical goods, the Federal Government created the Decree 10285/20 and CAMEX Resolution 17/20 and 23/20 which reduces to zero the tax rates of the IPI, reduces the ad valorem tax rate, and suspended the Antidumping rules for the import until September.

• Postponing of payments, instalments, tax auxiliary obligations and extension of the expiration date of the tax certificates (Tax): Tax authorities (Federal, State and Municipal) have postponed the payment of taxes and instalments, and the filling of tax auxiliary obligations for a period from 3 to 6 months. For the companies taxed by the Simples there was a new postponement of the taxes due in May, June and July to August, October, and December. The expiration date of tax certificates has also been extended for at least on month.

• Central Bank of Brazil Resolution No. 4,798 changes the regulation of Financing Constitutional Funds: The Central Bank of Brazil publishes the Resolution 4,798/20 that: a) instituted a special credit line with funds from the Financing Constitutional Funds of the North (FNO), the Northeast (FNE) and the Midwest (FCO) for the productive, industrial, commercial and service sectors of the Municipalities with a state of emergency by an act of the Federal Executive branch, arising from the public emergency related to Covid-19; and b) suspended, for up to 12 months, the installments due and falling due until December 31, 2020 for nonrural operations, in arrears or with a delay of up to 90 days on April 6, 2020, under the responsibility of the beneficiaries of the FNO, FNE and FCO impacted by state of emergency recognized by an act of the Executive Branch.

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