in view of the decisions rendered by the Federal Supreme Court in Extraordinary Appeal No. 593,849/MG and Direct Suit of Unconstitutionality ADI No. 2.777/SP” and (ii) CAT Ordinance No. 42/2018, which establishes the procedure to supplement and reimburse the withholding tax for substitution for the scenarios set forth in articles 265, 269, 277, and 426-A of the State’s ICMS Rules.

In August of this year, the Federal Supreme Court (STF) ruled that outsourcing is lawful in all stages of the production process, be it ancillary or main activities, in deciding Argument of Breach of a Basic Precept (ADPF) No. 324.

The Brazilian Corporations Law, in its article 115,[1] provides that shareholders must abstain from voting at meetings on matters in which their interests and those of the companies are in conflict. The purpose of the law is to protect the company's (corporate) interest to the detriment of the individual interests of the shareholders. Therefore, the legal provision imposes on shareholders with a conflict the duty of abstention, under penalty of the vote being considered abusive and even cause for annulment of the resolution.

Brazil already has rules to regulate the legal regime of multi-ownership and registration of real properties. It is Law No. 13,777/2018, which amended and introduced new provisions in the Civil Code and in the Public Registers Law. Published in the Official Gazette on Friday, the 21st, it originated in Bill No. 10.287/2018, passed the previous day, and enters into force on February 4, 2019 (45 days after its publication).

On December 13, President Michel Temer signed Presidential Decree (MP) No. 863, which extinguished the 20% limit on the participation of foreign capital in Brazilian airlines.

Ordinance CAT No. 24/2018, enacted on March 23, governed, among other issues, transactions with digital goods and merchandise traded through electronic data transfer.