The Legal Impacts of COVID-19 in the Travel, Tourism and Hospitality Industry

(ninety) days of reduction. It also approved the suspension of the workers' employment contract, who could then be without work for up to 60 (sixty) days. Futhermore, the Government also created the so-called “Emergency Employment and Income Preservation Benefit”, which meant them paying an ‘extra’ amount to each worker who had their work reduced or suspended. Almost 100% of travel agencies across Brazil, as well as other tourism-related activities, have adopted some of these options standardised by the Federal Government. 3. Tax Measures As mentioned before, Brazilian companies, including travel agencies, found it very difficult to honour their tax payments. Normally, Brazilian companies have taxes that are generated from the volume of income they receive monthly, as well as the volume of proven services they provide. There are also several taxes that are a consequence of their labour, that is, taxes related to income and services provided still referred to fiscal years of previous months that would be required to pay now at the time of the pandemic, and in the face of annihilation companies' cash flow and revenues, they encountered serious difficulties in compliance; unlike the labour-related taxes that companies have, which should be paid anyway. Likewise, the tourism sector, through entities and representatives, in constant articulation with the Federal Government, especially with the Ministry of Tourism, pleaded urgent measures to also enable the tourism sector and fulfil obligations. Among these measures, the Federal Government made it possible, at first, for those classified as small companies to postpone the payment of all their taxes for a few months ahead, which occurred through Resolution No. 154 of the Brazilian Federal Revenue 5 . Nevertheless, as many and main tourism companies were not classified as small companies, their obligations were still in force and necessary, thus waiting until the Brazilian Government, through the Brazilian Federal Revenue, on 3 April, published the 5 Source : http://normas.receita.fazenda.gov.br/sijut2consulta/link.action?visao=anotado&idAto=10836 8 .