At the end of May, the City of São Paulo approved Law No. 17,577/2021, which established the 2021 Incentive Installment Program (PPI 2021). The new program will allow taxpayers in São Paulo to settle their debts with the city, both tax and non-tax, and will be able to obtain significant discounts on interest and fines. Debts with taxable events up to December 31, 2020, whether constituted or not, including those registered as active debt, filed or to be filed, may be included in the PPI.
Installments and Discounts
Taxpayers who choose to join the PPI will be able to pay their debts in a single installment or in up to 120 monthly installments, adjusted by the Selic rate.
Regarding the discounts offered on tax debts, in the event of payment in a single installment, the PPI 2021 provides for a reduction of 85% in the amount of default interest and 75% in the fine; and a reduction of 60% in the amount of default interest and 50% in the fine in the event of payment in installments.
As for non-tax debts, payment in a single installment guarantees an 85% reduction in the amount of late payment charges on the principal debt, and a 60% reduction in the case of payment in installments.
The minimum amounts established for each installment are R$$ 50 for individuals and R$$ 300 for legal entities. It is important to emphasize that the formalization of the request to join the PPI 2021 implies the recognition of the debts included therein.
The inclusion in the 2021 PPI of debts related to obligations of a contractual nature; violations of environmental legislation; and balances of ongoing installments managed by the Municipal Finance Department is prohibited, except for the remaining tax debts from ongoing installments, entered into in accordance with art. 1 of Law No. 14,256/2006.
IPTU – amnesty on fines and interest
One of the new features of the 2021 PPI is the amnesty of fines and interest on the 2021 IPTU installments due up to April 30 and that have not been paid. This amnesty will allow those responsible to pay the installments at their original value, plus only monetary correction in accordance with the law, until November 30, 2021.
Debt Regularization Program (PRD)
Another new feature concerns the reopening of the deadline for formalizing new requests to join the Debt Regularization Program (PRD) installment plan, exclusive to legal entities that are not included in the special ISS collection regime for single-professional companies from December 24, 2003 to December 31, 2020.
The PRD allows taxpayers to regularize their ISS-related debts and, therefore, the debts to be considered for inclusion in the installment plan will only be those related to the period in which the taxpayer was improperly classified as a single-profession company.
The initial revenue projection for PPI 2021 is R$2.2 billion and the deadlines for joining the installment program will still be announced by the municipal administration.
