Alana Aiche do Carmo Dahrouj
Lawyer at Marcos Martins Advogados
Through Ordinance No. 1,696 of 2021, the Attorney General’s Office of the National Treasury – PGFN established the conditions for carrying out a transaction of federal debts registered as Active Debt, called the “Pandemic Transaction”.
Adherence to this modality will be available from March 1, and includes tax debts due from March to December 2020, unpaid due to the economic impacts of the coronavirus pandemic.
In addition to being due in the period mentioned, in order to be included in this type of transaction, the debts must be registered as an active federal debt by May 31, 2021.
All debts owed by legal entities will be covered, including those assessed by Simples Nacional, while in the case of individuals, income tax debts relating to the 2020 financial year can be negotiated.
This type of transaction allows the debt to be paid by means of a down payment of 4% of the total amount of the debt, which can be paid in installments over 12 months. The remaining balance can be divided into up to 133 installments, with reductions of between 50% and 70% depending on the modality used.
For social security debts, the maximum limit of 60 installments must be observed.
It is important to mention that, as a condition for adhering to the Transaction, the taxpayer must submit appropriate documentation proving their economic fragility caused by the pandemic, such as impact on the generation of results, drop in turnover and sales, and debt with suppliers, so that the PGFN can assess each taxpayer’s ability to pay.
The tax team at Marcos Martins Advogados has extensive experience in strategic analysis and planning for adapting the payment of tax debt to the cash flow of companies, and is available to any interested parties to answer questions about this important opportunity.
