The São Paulo State Attorney General’s Office (PGE) has published Notice of Settlement No. 03/2024, launching the third phase of the “Paulista Settlement” Program, a program that makes it possible for companies in the process of judicial reorganization, judicial liquidation, out-of-court liquidation or bankruptcy to pay ICMS debts registered as active debt in installments.
Adherence to the transaction program can be done until January 31, 2025, through the PGE website. It is worth noting that adhesion implies the waiver of any rights underpinning administrative and judicial proceedings, since it is an irrevocable and irreversible confession of the debts covered by the transaction.
Adhesion Requirements
ICMS debts registered as active debt may be the subject of the transaction, at the taxpayer’s discretion, subject to the following requirements:
- For debts subject to judicial collection, all CDAs from the same tax execution must be encompassed;
- The active debt certificate cannot be split up and must be transacted in its entirety;
- Each transaction request can contain a maximum of 50 active debt certificates, except in the case of debts under judicial collection, where all CDAs must be transacted.
Accession restrictions
Participation in the installment payment program will be prohibited for debts other than ICMS registered as active debt, as well as in the following other cases:
- Debts relating to the additional ICMS tax destined for the State Fund to Combat and Eradicate Poverty (FECOEP);
- Debts fully guaranteed by a judicial deposit, guarantee insurance or bank guarantee in an anti-execution action or execution embargo with a final and unappealable decision;
- Debts owed by debtors whose judicial reorganization has been terminated by a final and unappealable decision.
Adherence to the transaction, even if the agreement is not signed, will result in the automatic termination of existing installment payments for the same debts registered as active debt, preventing any reductions from being cumulated.
Deadlines, Discounts and Usable Credits
Adherence can be made in up to 145 months, with a 100% discount on interest, fines and other accruals; however, the limit of 70% of the total value of the credits must be observed, and the reduction of the principal amount of the debt is prohibited.
The percentage of discounts on legal fees set by the courts in tax foreclosures and those resulting from the act of registering the debt as an active debt will be 100%.
In addition, accumulated ICMS credits may be used, either the taxpayer’s own or those of third parties, duly approved by the competent authority, to offset up to 75% of the tax debt after the discounts.
Liquid, certain and enforceable credits may also be used, whether the company’s own or acquired from third parties, with an approved assignment, consisting of writs of payment arising from final and unappealable court decisions, limited to 75% of the amount of the debt after the discounts. The use of credits in writs of payment must also be accompanied by a request and authorization of the requisition on the PGE’s Precatórios Portal.
The amount of the monthly installment will be at least R$ 500.00, and these installments will be increased by the corresponding non-capitalizable interest:
- at the benchmark rate of the Special Settlement and Custody System – SELIC, accumulated monthly, calculated from the month following the approval of the installment payment transaction until the month preceding the payment of the installment; and
- at 1% for the month in which the installment is paid.
If you have any questions, our tax team is at your disposal for clarification and guidance.
