New Deadline for Installment Payment of State Debts in São Paulo

New Deadline for Installment Payment of State Debts in São Paulo

14/01/2016

On January 9th, 2016, the Government of the State of São Paulo, enacted Decree n. 61,788/2016 – Special Installment Programme of ICMS (PEP) – and Decree n. 61,789/2016 (Tax debts Installment Programme). Both decrees, essentially, granted additional time for taxpayer currently in debt with the São Paulo tax authorities to pay immediately or enter an installment agreement on debts related to ICMS, IPVA, ITCMD, fees and penalties (contractual, environmental or otherwise) with reduced penalties and interests.

According to both decrees, between January 13th and the 29th of February, taxpayers will be able to formalize their option for including any of their debts in the installment programme. The programmes allow the inclusion of all ICMS related debts (regardless of the taxes being collected in administrative or already at judicial court) generated not after December 31st 2014.

Please find bellow the proposed reduction of interests and penalties as well as interests charged on the installment payments:

ICMS
Payment Schedule Installment Interest Penalties (reduction) Interests (reduction)
Immediate payment - 75% 60%
Up to 24 months 1% per month 50% 40%
Between 25 and 60 months 1,40% per month 50% 40%
Between 61 and 120 months 1,80% per month 50% 40%

 

PPD (IPVA, ITCMD e Taxas)
Payment Schedule Installment Interest Penalties (reduction) Interests (reduction)
Immediate payment - 75% 60%
Up to 24 months 1% per month 50% 40%

 

Para débitos não-tributários a redução será de 75% do valor atualizado dos encargos moratórios, para pagamento à vista, e redução de 50% do valor atualizado dos encargos moratórios, para pagamento em até 24 meses.

Moreover, for other tax unrelated debts, the reduction would be of 75% of the current due amount for immediate payments and 50% for payments in up to 24 months.

We remain at your disposal for any further clarifications and assistance that are deemed necessary regarding this new development.

 

Tax Team of Pacheco Neto, Sanden, Teisseire Advogados.