As of April 2, 2020, Brazil reported approximately 7,000 COVID-19 cases and 141 fatalities. To curb the spread of the virus, federal, state, and municipal governments enacted extensive measures, including significant lockdowns in São Paulo, Rio de Janeiro, and other states. These restrictions have severely impacted many economic sectors. In response, the Brazilian government implemented several emergency measures to support businesses, with additional measures anticipated as the situation evolves.

Labor Law Measures

• Employee vacation advancement: Employers can unilaterally require employees to take vacation with 48 hours’ notice, including those who haven’t accrued vacation rights.
• 25% salary reduction: Salaries can be reduced by up to 25%, adhering to legal minimum wage rules and justifying economic hardship.
• Special home office rules: Employers may require employees to work remotely with 48 hours’ notice, including agreements on equipment and expense reimbursement.

Tax Measures

Emergency rules for tax payment deferral are limited. FGTS contributions can be deferred into six installments, provided the taxpayer notifies authorities appropriately. In the absence of comprehensive rules, some taxpayers have pursued legal actions to defer federal tax payments, with mixed outcomes.

Medical Product Imports

The government eliminated import taxes on medical products essential for combating COVID-19, including alcohol, protective gear, and respiratory devices. These measures, effective until September 30, 2020, prioritize expedited processing by federal agencies.

Public Authority Service Suspension

• São Paulo Board of Trade: Public services suspended until April 30, 2020, except for new entity incorporations via the electronic system.
• Federal Revenue Service: Limited to essential services by appointment; administrative procedure deadlines are suspended.
• INPI: Services suspended, with administrative deadlines extended to April 14, 2020. Trademark applications remain available online.
• Courts: In-person meetings suspended until April 30, with remote services available.
• Registry of Deeds and Documents: Operating from 11:00 am to 3:00 pm on business days.