Debt Negotiation: PGFN launches new Transaction Programs

The Attorney General’s Office of the National Treasury (PGFN) has published transaction notice no. 06/2024, which makes it possible to negotiate debts, according to the following modalities:

Small value transaction;

Small value settlement for MEI social security debts;

Transaction according to ability to pay;

Transaction for debts that are difficult to recover or irrecoverable;

Registration transactions guaranteed by insurance or letter of guarantee;

1. Possibility of paying small debts in installments

This modality allows the negotiation of all eligible debts of individuals, individual micro-entrepreneurs (MEI), micro-enterprises (ME) and small companies (EPP), registered as active debt until November 1, 2023, whose consolidated value is equal to or less than 60 minimum wages.

Payment of the transaction can be made with a down payment of 5% of the total amount of the debt, without discount, in up to 5 monthly installments. The payment terms are as follows:

Installments	Discount to be granted
Up to 07 months	50% of the total amount
Up to 12 months	45% of the total value
Up to 30 months	40% of the total value
Up to 55 months	30% of the total value

2. Small value settlement for MEI social security debts

Individual micro-entrepreneur (MEI) social security debts, registered as active debt until November 1, 2023, whose consolidated value is equal to or less than 5 minimum wages, may be the subject of a transaction under this modality.

The payment for the transaction cannot be less than R$25.00 (twenty-five reais), which will have the following payment condition:

	Discount	Benefits
5% down payment	No	5 months
Remaining balance	50%	55 months

3. Transaction according to ability to pay

This modality can include debts registered as active debt until August 1, 2024, whose consolidated value is equal to or less than R$45 million. The benefits granted vary according to the classification of the taxpayer’s ability to pay as estimated by the National Treasury:

Taxpayers classified as “A” or “B” transactions can take advantage of the facilitated entry.

Taxpayers classified as “C” or “D” will be able to take advantage of easier entry, extended terms and discounts on legal fees.

This modality makes it possible to make a down payment of 6% of the total amount of the debt, in up to 6 monthly installments, and in up to 12 monthly installments in the case of individuals, individual micro-entrepreneurs (MEI), micro-enterprises (ME), small businesses (EPP), Holy Houses of Mercy, cooperative societies and other civil society organizations (Law No. 13,019 of 2014) or educational institutions.

The remaining balance can be divided into up to 114 monthly installments for taxpayers in general and up to 133 monthly installments for individuals, individual micro-entrepreneurs (MEI), micro-enterprises (ME), small businesses (EPP), Holy Houses of Mercy, cooperative societies and other civil society organizations (Law No. 13,019 of 2014) or educational institutions. In the case of social security debts, the maximum number of installments is 60 months.

Discounts will be up to 100% on the amount of interest, fines and the legal charge, and may not exceed 65% of the total amount of each debt, nor reach the principal amount of the tax. In the case of natural persons, MEI, ME, EPP, Santas Casas de Misericórdia, cooperative societies and other civil society organizations (Law No. 13.019 of 2014), educational institutions, entrepreneurs or business companies in judicial recovery, the total discount on the debt can reach 70%.

4. Transaction of debts that are difficult to recover or irrecoverable

Debts registered as active debt until August 1, 2024, whose consolidated value is equal to or less than R$ 45 million and which fall into one of the following situations:

Debts registered more than 15 (fifteen) years ago and with no current notation of guarantee or suspension of enforceability;

With enforceability suspended by court decision for more than 10 (ten) years, under the terms of art. 151, IV or V, of the National Tax Code;

Owned by a legal entity whose special status in the CNPJ is: bankrupt, in judicial liquidation, in intervention or out-of-court liquidation;

Ownership of a legal entity whose CNPJ registration status is lowered due to inaptitude, lowered due to lack of fact, lowered due to contumacious omission, lowered due to closure of bankruptcy, lowered due to closure of judicial or extrajudicial liquidation, lowered due to closure of liquidation, inapt due to unknown location, inapt due to lack of fact, inapt omitted and not located, inapt due to contumacious omission, or suspended due to lack of fact;

Ownership of an individual with a death certificate.

The conditions for negotiating debts in this modality are identical to those of the transaction according to ability to pay, with the exception of just two points:

1) the 6% down payment can be paid over 12 months for any taxpayer;

2) the grading of deadlines and discounts does not take into account the taxpayer’s ability to pay, since the situations described above already generate a presumption that the debt is irrecoverable.

5. Registration transactions guaranteed by Guarantee Insurance or Letter of Guarantee

Debts registered up to August 1, 2024, for which the taxpayer has a final and unappealable decision and which are guaranteed by a surety bond or letter of guarantee, prior to the occurrence of the claim or the start of enforcement of the guarantee, may be included in this modality.

Payment terms, without discount, may be as follows:

Entry	Benefits
50%	12 months
40%	8 months
30%	6 months

Conclusion

Federal writs of payment may be used to pay off or amortize the outstanding balance, provided they are owned by the interested party or acquired from a third party as a result of a final and unappealable court decision. Negotiations do not include the use of credits resulting from tax losses or negative CSLL (Social Contribution on Net Profits) calculation bases.

In the case of taxpayers who are part of an economic group, in law or in fact, after joining the transaction, express acknowledgement of this circumstance must be submitted on the PGFN REGULARIZE portal.

The installments cannot be less than R$25.00 (twenty-five reais) for MEI; and R$100.00 (one hundred reais) for other taxpayers and will be adjusted by applying the SELIC rate accumulated monthly from the date of adhesion and 1% for the month in which the payment is made.

Adherence to the available transaction modalities can be carried out through the PGFN’s REGULARIZE portal and implies the withdrawal of legal action, objections and appeals, and the request to withdraw any existing actions, objections or appeals must be submitted within 60 days of the date of adherence to the debt negotiation.