The National Treasury Attorney’s Office (PGFN) and the Federal Revenue Service of Brazil (RFB) have recently introduced new tax transaction programs. These programs offer taxpayers the opportunity to resolve disputes with attractive discounts

The settlement of Federal Public Treasury credits, whether related to taxes or non-tax issues, was authorized by Law 13.988/20. This law covers three different ways to settle these credits:

1. Through individual proposal or by adherence, for the collection of credits registered in the Union’s active debt.
2. Through adherence, in other tax judicial or administrative litigation cases.
3. Through adherence, in small-value tax litigation.

Discover the latest public notices and stay informed about important updates.

1) Adhesion Transaction – Public Notice n. º 02/2024

• Eligible Taxpayers and Debts:

Credits listed in the Union’s active debt, regardless of whether they are in the stage of judicial execution or subject to a previously annulled installment plan, and whether enforceability is suspended or not. The consolidated value of these credits for negotiation should be equal to or less than R$ 45,000,000.00 (forty-five million reais).

• Payment and discounts:

For outstanding Union debts, taxpayers can negotiate by paying an initial amount equal to 6% of the total debt. This 6% can be paid in six consecutive monthly installments. The remaining balance can be paid in up to 114 consecutive monthly installments. Additionally, taxpayers may qualify to have up to 100% of interest, fines, and legal charges waived based on their ability to pay. However, please note that the total value of each negotiated debt cannot exceed 65%.

For individuals, microenterprises, small businesses, Santa Casas de Misericórdia, cooperatives, civil society organizations, and educational institutions, the initial payment is 6% of the total debt, which can be paid in up to 12 consecutive monthly installments. The remaining balance can be divided into up to 133 consecutive monthly installments, with the potential to reduce up to 100% in interest, fines, and legal charges. However, the total value of each negotiated debt must not exceed 70%

For active social security and social contribution debts, and in cases where no discount is granted, the maximum payment term will be 60 months, based on the taxpayer’s payment capacity.

• Deadline:

Taxpayers must adhere to the program exclusively through the REGULARIZE website, which is available on the PGFN portal, by 7 pm on August 30, 2024. It’s important to note that in some cases, joining the program is contingent on first withdrawing ongoing installment payments. Additionally, participants in the installment plan must provide a copy of the request to withdraw any lawsuits, challenges, or appeals related to the negotiated credits.

2) Transaction of Small Amounts – Public Notice No. 02/2024

• Eligible Taxpayers and Debts:

This notice applies to individuals, individual microentrepreneurs, microenterprises, or small businesses with outstanding debts to the Union totaling up to 60 minimum wages that have been enrolled for more than one year.

• Payment and Discounts:

Taxpayers have the option to negotiate by paying an initial amount of 5% of the total value of the enrollments being negotiated. This initial amount can be paid in up to five consecutive monthly installments. The remaining amount can be paid as follows, regardless of the taxpayer’s payment capacity:

• Up to seven months, with a 50% reduction;
• Up to twelve months, with a 45% reduction;
• Up to thirty months, with a 40% reduction; or
• Up to fifty-five months, with a 30% reduction.

Furthermore, enrollments resulting from social security contributions owed by individual microentrepreneurs, with a total value of up to five minimum wages and enrolled for more than one year, can be subject to negotiation. The negotiation involves paying an initial amount of 5% of the total value of the enrollments being negotiated, which can be paid in up to five consecutive monthly installments. The remaining amount can be paid with a 50% reduction over a period of up to fifty-five months.

• Deadline:

Adherence to the program must be done exclusively through REGULARIZE, available on the PGFN portal, until 7 pm on August 30, 2024.

3) Transaction of Enrollments Guaranteed by Insurance or Letter of Guarantee – Public Notice n. º 02/2024

• Eligible Taxpayers and Debts:

This notice applies to cases where the debtor has received a final unfavorable judicial decision that is guaranteed by insurance or a letter of guarantee before the loss event or execution of the guarantee

• Payment and Discounts:

Taxpayers have the option to pay the total amount in installments without any discount. Here are the available options:

• Pay 50% upfront and the remaining amount in 12 monthly installments.
• Pay 40% upfront and the remaining amount in 8 monthly installments.
• Pay 30% upfront and the remaining amount in 6 monthly installments.

Approval of this payment plan is subject to maintaining insurance guarantee or a letter of guarantee until the debt is fully settled. It’s important to note that no other payment modalities provided in the notice will be accepted for debts covered by these conditions.

In these payment options, the first installment must be paid by the last business day of the month when the agreement is made. Failure to comply may result in a penalty. Installments will accrue interest equivalent to the SELIC for federal securities plus 1% for the month in which the payment is made. The minimum installment amount cannot be less than R$100.00, except for individual micro-entrepreneurs, whose minimum is R$25.00.

• Deadline:

Adherence to the program must be done exclusively through REGULARIZE, available on the PGFN portal, until 7 pm on August 30, 2024.

4) Transaction for Debts Related to ICMS Tax Incentives – Public Notice n. º 04/2024

• Eligible Taxpayers and Debts:

Debts that arise from the exclusion of ICMS tax incentives and benefits from the calculation basis of IRPJ/CSLL, which is done in violation of Article 30 of Law No. 12,973/2014, may be included in this settlement. This also includes fines related to these debts.

The settlement is conditional upon the existence, as of the date of publication of the notice, of active debt registration, ongoing judicial action, fiscal execution embargoes, complaints, or administrative appeals pending definitive judgment until May 31, 2024. Additionally, it covers tax debts, regardless of whether they are registered in the Union’s active debt, of any amount, up to the deadline for adhesion. This includes debts with suspended enforceability.

• Payment and Discounts:

Taxpayers can make payment under the following conditions

• Pay the full debt amount in cash and receive an 80% reduction. You can choose to pay in up to 12 monthly installments.
• Pay at least 5% of the total debt amount in cash without any reductions, in up to 5 monthly installments. You can then pay the remaining balance in the following ways:
  • In up to 60 monthly installments with a 50% reduction of the remaining debt amount; or
  • In up to 84 monthly installments with a 35% reduction of the remaining debt amount.

• Deadline:

Taxpayers can formalize adhesion until 7:00 PM on June 28, 2024. If you have debts with the RFB, you must formalize them by opening a digital process on the e-CAC Portal. For debts registered in the Union’s active debt, adhesion must be formalized through the REGULARIZE Portal.

5) Transaction for Debts Related to Chartering of Oil Platforms – Public Notice n. º 06/2024

• Eligible Taxpayers and Debts:

The eligible debts for this transaction are those that are currently being disputed either administratively or judicially regarding the taxation of IRRF, CIDE, PIS, and COFINS on international remittances. These disputes arise from the division of the legal transaction outlined in a chartering contract for vessels or platforms and a separate contract for service provision, as specified in Law No. 9.481/1997.

• Payment and Discounts:

Taxpayers with debts can choose from the following payment options:

• 65% discount on the debt amount, with a minimum down payment of 30%, and the remainder paid in up to six monthly installments.
• 35% discount, with a minimum down payment of 10%, and the remaining balance divided into up to 24 monthly installments.

Additionally, the notice allows the use of fiscal loss and negative CSLL base credits, which may belong to the company itself, its parent or subsidiary, or companies directly or indirectly controlled by the same legal entity. However, the use of these credits is limited to 10% of the remaining debt balance after applying discounts.

• Deadline:

Taxpayers can finalize their adherence until July 31, 2024. If the taxpayer has debts with the RFB, they must formalize it by opening a digital process on the e-CAC Portal. For debts registered in the Union’s active debt, adherence must be formalized through the REGULARIZE Portal.

Our experts are prepared to guide companies through the evaluation of available transaction programs.