The São Paulo State Attorney General’s Office (PGE/SP) has published PGE Notice 01/2024, which launches a new agreement program for the early payment of state court-ordered debts (payments due after a court decision).
The program, which begins in August 2024, is conditional on a 40% discount on the value of the existing claim, not including succumbence and contractual attorney’s fees.
In a practical case, if the creditor opts to pay in advance, he would have the following situation:
- Precatory order for R$ 100,000.00;
- Discount of R$ 40,000.00;
- Amount to be received: R$ 60,000.00* (not including legal fees and taxes on receipt).
The following can join the agreement: a group of creditors, an individual creditor, successors of creditors or a lawyer who holds a writ of payment for a certain, liquid and enforceable amount, when there is no challenge, pending appeal or defense measure. Creditors who have a claim against the São Paulo State Treasury or its municipalities, foundations and dependent public companies can also apply.
Credits will be calculated using the PGE/SP’s Single Precatory Control System, applying the updating criteria and legal deductions for contributions and taxes. The only possibility of creditors contesting the settlement is in the event of an error in the calculation.
Applications to join the agreement can be made directly on the State Attorney General’s Office’s Precatórios Portal, through a lawyer, until December 31, 2024.
The PGE/SP aims to reduce the payment period for precatórios by half, from 120 to 60 days, so that the agreement can be sent to the São Paulo State Court of Justice more quickly, enabling the funds to be released.
The measure is proving to be positive for the holders of precatórios. Currently, according to data provided by the state government, there are 309,000 creditors with around 208,000 precatórios, 80% of which are related to food, health, wages and salaries.
If you have any questions about joining the program, our Tax team is available for clarification and guidance.
