Tax transactions regulated in São Paulo

Tax transactions regulated in São Paulo.

On Wednesday, February 7, 2024, PGE Resolution No. 6 was published, regulating Law No. 17,843/2023, which deals with the settlement of disputes involving credits registered as active debt. This resolution establishes various criteria and modalities for the transaction, making it possible, among other measures, to offset the main ICMS tax debt, fines and interest with accumulated credits and ICMS reimbursement credits, whether own or acquired from third parties. In addition, there are requirements such as the presentation of guarantees, payment of a minimum down payment and analysis of the degree of recoverability of the debt.

Together with the Resolution, PGE/Transaction Notice No. 1 was published, which deals with the Adhesion Transaction in Litigation of Relevant and Widespread Controversy, in the exceptional modality. This notice allows all debts registered in the debtor's name to be included in the transaction, with significant discounts on interest for late payment and on the remaining debt, including fines and legal charges. Taxpayers can adhere to this modality, as long as they meet the established requirements.

These initiatives represent a unique opportunity for São Paulo taxpayers to regularize their tax situation, avoiding protracted litigation and ensuring greater legal certainty for their business activities.

Main Points and Opportunities of the New ICMS Debt Transaction Program of the State of São Paulo:

  • Discounts of up to 100% on late payment interest and 50% on the remaining debt (fines, interest and legal charges).
  • Use of accumulated ICMS and precatory credits to pay off up to 75% of the debt.
  • Installments up to 120 times, with a down payment of 5% of the final consolidated credit.
  • The inclusion of debts guaranteed by deposit, guarantee insurance or bank guarantee, among other cases, is prohibited.

BTLaw's tax team is available to answer questions and provide guidance on this new transaction program.