The São Paulo state government has passed a law that improves the conditions for negotiating debts registered as outstanding. The matter was published on November 8 through Law No. 17,843 of 2023.
The transaction can be carried out in two ways:
- By adhesion, when the taxpayer adheres to the terms and conditions established in a notice published by the PGE;
- On the debtor’s own initiative, by submitting an individualized proposal.
The debts covered by the transaction on the debtor’s own initiative will be those already registered as active debt, for which there will be the possibility of an installment plan of up to 120 months, with discounts of up to 65% of the total value of the debts to be transacted.
It is worth mentioning that natural persons, micro-enterprises or small businesses can obtain discounts of up to 70% of the total amount of the debts and installments over 145 months.
An important point of the program is that it allows for the acceptance of any type of guarantee provided for by law, including real guarantees, bank guarantees, insurance guarantees, fiduciary assignment of credit rights, as well as liquid and certain credits against the state, its municipalities, foundations and dependent companies, known as precatórios, observing the limit of 75% of the value of the debt. The precatórios can be the debtor’s own or acquired from third parties.
It is also permitted to use accumulated credits and ICMS reimbursement, including credits arising from tax substitution (ICMS-ST), as well as credits from rural producers (their own or acquired from third parties), duly approved and also observing the limit of 75% of the amount of the debt.
In the case of an adhesion transaction, the State Attorney General’s Office (PGE) will publish a public notice containing the requirements to be met, the reductions or concessions offered and the deadlines and payment methods for the debts.
In both cases, any objections or administrative appeals relating to the debts included in the transaction must be withdrawn.
The new negotiation conditions are much more favorable to taxpayers, since under the previous rules it was only possible to get a discount of up to 30% of the value of the debts and payment in installments over 60 months.
However, taxpayers should be aware that the state government also has a tax compliance incentive program, “Resolve Já”, and it is necessary to analyze both pieces of legislation in order to choose the most advantageous program to join.
If you have any questions on the subject, our tax team is at your disposal.
