Normative Resolution 88 - Visa concessions for training - Definition

Normative Resolution 88

The National Immigration Council (CNIg) approved the Normative Resolution No. 88 of September 15^th, 2010 that organizes the visas concessions to the foreign who come to Brazil for training.

For this new resolution is considered training “the supervised school education developed in the workplace, that aims the preparation of students who are attending regular education in higher education institutions”.

The visa must be requested abroad to the diplomatic missions, consular offices and vice-consulates.

The validity of this law is up to 1 (one) year, extendable once for the same period, which circumstance will be shown at Foreign Identity Card, and also the trainee status.

The RN 88 allows trainees to receive allowance to maintain themselves, as well as the other benefits under Brazilian training law.

For this new resolution, were repealed the resolutions which used to organize the training visa concessions, Normative Resolution No. 41/1999 and No. 42/1999.

Normative Resolution 87 - Visa Concessions to receive professional training

Normative Resolution 87

The National Immigration Council (CNIg) approved the Normative Resolution No. 87 of September 15^th, 2010 that organizes the visas concessions to the foreign connected to the foreign company, to receive professional training with the branch, subsidiary or Brazilian Matrix belonging to the same economic group.

Article 1, paragraph, of this resolution defines the concept of professional training as “the activity that aims to develop skills and knowledge through practical work.”

The visa statute of this new resolution will follow the Normative depending on prior authorization of the Ministry of Labor and Employment (MTE).

The validity of the visa will be up to 1 (one) year, non-extendable, this circumstance will be shown at the Foreign Identity Card.

The article 3 stipulates that the Ministry of Labor and Employment (MTE) may reject an application for a visa if there is a circumstantial evidence of the company’s interest to make mere substitution of national to foreign labor.

Finally, we see this new law repealed the Normative Resolution 37/1999, concerning the visa concessions to foreign who wanted to come to the country for professional training, after their university graduation, without any employment link in Brazil.

Normative Resolution #84 - FGTS over foreign portion of salary for expats

The Ministry of Labor and Employment has published the Normative Resolution No. 84, of July 13^th 2010, which foresees regarding the inspection on the payment of the Guarantee Fund for Length of Service (FGTS).

The Article 8, sole paragraph, clause V, of this Normative Resolution foresees that the collection of FGTS and CS (Social Contribution) under the paid or payable remuneration to employees, in percentages established by the law be collected based on the remuneration paid to the foreign employee, working in Brazil, regardless where the payment of the salary is done.

Therefore, it is converted into a rule the understanding that the portion received by the foreign employee abroad is also subject to collection of FGTS.

Labor inspectors are doing due diligence at the companies to ensure they are following this Normative Resolution.

This Normative Resolution issued by Presidency, regulates the enforceability of the contribution, however, we recommend our clients to consult their tax lawyer about the legality and applicability of this Normative Resolution.