In November 2024, Municipal Decree No. 63,865/2024 was published, reopening the deadline for adherence to the Incentive Installment Program (PPI) in the city of São Paulo, with the possibility of settling tax or non-tax debts, with reduced fines and interest.
You can join the installment program until January 31, 2025, via the São Paulo City Hall website.
Originally, the installment plan was regulated by Decree 63.341/2024.
Target audience
The installment program is aimed at individuals and companies.
Eligible debts
Municipal tax and non-tax debts can be included, whether or not they are registered as active debt, relating to triggering events that occurred up to December 31, 2023.
Among the eligible debts are the following: IPTU, ISS, ITBI, debts related to Terms of Permission to Use – TPUs, Fees, fines, Ordinance Fines, including debts included in PAT, PRD installments and active debt agreements in progress.
Ineligible debts
Debts relating to obligations of a contractual nature, violations of environmental legislation, debts corresponding to the Special Unified Tax and Contribution Collection Regime (Simples Nacional) and debts included in a transaction entered into with the Municipal Attorney General’s Office cannot be included in the PPI.
Conditions, forms and discounts granted
Debts can be paid in up to 120 installments, with discounts of up to 95% on interest and fines, depending on the nature of the debt and the payment method chosen by the taxpayer. See the conditions:
| Tax debts | Non-tax debts |
| Single installment: 95% reduction in default interest and 95% reduction in fines and, when the debt is not in court, 75% reduction in legal fees. | Single installment: 95% reduction in the amount of late payment charges levied on the principal debt and, when the debt is not in court, 75% reduction in legal fees. |
| Payment in up to 60 installments: 65% reduction in interest on arrears, 55% reduction in fines and, when the debt is not in court, 50% reduction in legal fees. | Payment in up to 60 installments: 65% reduction in the updated amount of late payment charges levied on the principal debt and, when the debt is not in court, 50% reduction in legal fees. |
| Payment in 61 to 120 installments: 45% reduction in interest on arrears, 35% reduction in fines and, when the debt is not in court, 35% reduction in legal fees. | Payment of 61 to 120 installments: 45% reduction in the amount of late payment charges levied on the principal debt and, when the debt is not in court, 35% reduction in legal fees. |
It is worth noting that the fines that can be reduced include penalties of a moratorium or punitive nature, due for non-payment of the tax, as well as those imposed due to non-compliance or untimely compliance with accessory tax obligations.
In addition, the amount of the monthly installment will be at least R$ 50.00 for individuals and R$ 300.00 for legal entities, plus the corresponding interest:
- at the benchmark rate of the Settlement and Custody System – SELIC, accumulated monthly, calculated from the month following formalization until the month preceding payment; and
- at 1% for the month in which the installment is paid.
The formalization of the request to join the PPI implies recognition of the debts included in it, as well as the automatic waiver of any rights underpinning administrative and judicial proceedings, since it is an irrevocable and irreversible confession of the debts covered by the installment plan.
Exclusion hypotheses
PPI 2024 stipulates that taxpayers who:
- You are more than 90 days delinquent in the payment of 3 installments, consecutive or not;
- You have been in default for more than 90 days with the payment of any installment, counting from the first business day after the due date of the last installment;
- Is in default for more than 90 days with the payment of any residual balance of the installment plan, counted from the first business day after the due date of that balance;
- Failure to prove to the Tax Administration that they have waived any rights underpinning administrative or judicial proceedings within 60 days of the date on which the application to join the program is formalized;
- The bankruptcy or liquidation of the legal entity has been decreed;
- The legal entity is spun off, unless the new company resulting from the spinoff or the one incorporating part of the assets jointly and severally assumes the PPI 2024 obligations with the spun-off company; and
- Move the legal entity’s headquarters outside the Municipality of São Paulo, during the period in which the installment plan is in force.
If you have any questions, we are at your disposal for clarification and guidance.
