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Brazil tax measures for COVID-19

  • Aug 21, 2020 | Richard Asquith

21 Aug - Rondônia has pushed out the ICMS payment dates until end of December 2020. São Paulo is pausing tax court hearings. PIS and COFINS contributions for May were delayed till Oct.

Update, 7 April: April and May COFINS and PIS (see below) contributions, normally due in April and May are now delayed until August and September.

  • COFINS, Contribuição Social para o Financiamento da Seguridade Social – the federal tax contribution to the Social Security Financing paid on company revenues. The rate can be up to 7.6% on monthly revenue depending on the activities of the company.
  • PIS, Programa de Integração Social, at a rate 1.65% with COFINS together comprise the social contributions levy applicable to transactions.

The financial transaction tax has been reduced to 0%.

23 March: The IPI, Imposto sobre Produtos Industrializados, the federal tax on manufactured goods, is to be set to zero on many medical supplies.

The Brazilian government and Ministry of Economy has announced the General Attorney of Finance (PGFN) will suspend until the start of July existing measures against taxpayers for non-compliance. It will also not initiate new measures or withdrawing easy-payment regimes from any businesses.

It has also extended tax payments for small businesses (Simples Nacional) for six months. Import duties on medical supplies has been suspended until September 2020. There is scope for a waiver for some import clearance processes within the Authorised Economic Operator scheme.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2019 Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.

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