Alana Dahrouj
Lawyer at Marcos Martins Advogados
State Law No. 17,293 of 2020, enacted on October 15, 2020, made it possible to settle state debts registered as Active Debt.
The possibility includes tax and non-tax debts registered with the São Paulo State Attorney General’s Office (PGE-SP), including debts subject to existing installment plans.
The transaction can be carried out by adhering to the terms published in a public notice by the State Attorney General’s Office, or by a proposal on the taxpayer’s own initiative.
The advantage of adhering to this type of transaction is the opportunity to settle the state debt with a discount of up to 30% of the total value of the debts transacted, with discounts of up to 50% for individuals, micro-enterprises or small businesses
Payment in installments can be made in up to 60 months, but in cases where the debtor is in judicial or extrajudicial reorganization or insolvency, the debt can be paid in up to 84 installments.
The percentages of discounts and the number of installments will be defined on a case-by-case basis, according to the degree of recoverability of the debt to be classified by the Attorney General’s Office.
It is important to mention that taxpayers who sign up to this type of agreement and terminate it at a later date will not be able to formalize a new agreement within two years, even if it relates to other debts.
The tax team at Marcos Martins Advogados has extensive experience in strategic analysis and planning to adapt the payment of tax debts to the cash flow of companies, and is available to any interested parties to answer questions about this important opportunity.
