Put Mariana Martins and Marcelo Blecher – 01/04/2020

Another measure was announced by the Federal Government with the aim of mitigating the economic impacts resulting from the COVID-19 pandemic. The Provisional Measure (“MP”) 932/2020 was published in the Official Gazette of the Union (“DOU”) on March 31, 2020, which provides, for a period of 90 days, the reduction by half of the rates applicable to contributions collected by companies to finance the so-called S System. The reduction will be applicable in the period between 01/04/2020 and 30/06/2020.

In summary, the aforementioned MP determines that the reduction in rates be applied as follows:

• National Service for Cooperative Learning (“SESCOOP”): 1,25%;
• Social Service of Industry (“SESI”), Social Service of Commerce (“SESC”) and Social Service of Transport (“SEST”): 0.75%;
• National Commercial Training Service (“SENAC”), National Industrial Training Service (“SENAI”) and National Transport Training Service (“SENAT”): 0.5%; and
• National Rural Learning Service (“SENAR”): 1.25% of the contribution levied on the payroll; 0.125% of the contribution levied on the revenue from the sale of rural production owed by the rural producer who is a legal entity and by the agroindustry; and 0.10% of the contribution levied on the revenue from the sale of rural production owed by the rural producer who is an individual and special insured.

MP 932/2020 also establishes that during this period, entities of the S System will have to allocate 7% of the amount collected to the RFB, in return for collection and transfer services - the percentage corresponds to double that previously provided for (3.5%) in Law 11,457/07; and that SEBRAE will transfer by June at least half of what it receives from the collection of the additional 0.3% charged on the rates of the S System to the Micro and Small Business Guarantee Fund (“FAMPE”).

Finally, it is important to emphasize that the MP must follow the new summary processing procedure established by Congress during the state of calamity period, and, therefore, must be voted on by the Chamber and the Senate by the end of April.

Our tax team is at your disposal and at your company's disposal for any questions regarding the matter.