On May 23, 2024, the Government of the State of São Paulo published Decree No. 68,538/2024, which institutes the São Paulo in the Right Direction Plan, establishing guidelines that aim at “expanding investment, efficiency of public spending, reducing current expenses and modernizing the state Public Administration”.

In this context, it is worth highlighting some of the provisions of this Decree that directly affect the tax sphere. This is because the implementation of the Plan will include the preparation of impact and feasibility studies to expand and improve compliance and tax transaction programs.

The first highlight to be made concerns the determination of the assessment of tax benefits granted by the State of São Paulo. This assessment must occur through technical studies and proposals to be carried out within 90 days from May 23, 2024. As stated in the decree itself, this assessment aims to reduce expenses and improve the effectiveness of public spending.

Furthermore, a determination was established for the expansion of tax transaction programs, also made possible through the performance of technical studies within 60 days from the issuance of the decree. These studies must include the identification of disputes arising from legal controversy, which are relevant and widespread, for the application of tax transaction by adhesion, as provided for in article 16 of Law No. 17,843/2023.

It is also worth highlighting the technical studies aimed at expanding the hypotheses for using accumulated credits and ICMS reimbursement, including in cases of tax substitution (ICMS-ST) and liquid, certain and collectible credits, owned or acquired from third parties, embodied in court orders resulting from final and binding judicial decisions. This expansion should be addressed in technical studies to improve compliance and tax transaction programs.

These changes, in addition to aiming at a better tax-taxpayer relationship, also aim to reduce and improve the effectiveness of public spending.

Therefore, we must pay close attention over the coming months to the results obtained from the technical studies mentioned above, as well as what the impacts of the Plan will be on the tax sphere of the state of São Paulo.

Our team is available to provide any clarification on this topic.