By Mariana Martins and Gustavo Paulucci Teixeira

Through ICMS Agreement 152/2019, CONFAZ authorized the State of São Paulo to establish a new ICMS debt installment program with reduction of fines and other legal additions, related to taxable events that occurred up to May 31, 2019, whether or not registered as active debt, as long as they have not been included in previous installments.

The legislation of the State of São Paulo, through a specific rule, will set the maximum deadline for taxpayers to join, which may not exceed December 15, 2019.

The consolidated debt can be paid:

• (i) In a single installment, with a reduction of up to 75% of punitive and late payment fines and up to 60% of other legal additions;
• (ii) In up to 60 equal and successive monthly installments, with a reduction of up to 50% of punitive and late payment fines and 40% of other legal additions. In this case, monthly interest will be applied of up to:
  • 0.64% for settlement in up to 12 installments;
  • 0.80% for settlement of 13 to 30 installments;
  • 1.00% for settlement of 31 to 60 installments.

The new installment plan has not yet been regulated by the State of São Paulo, so that taxpayers interested in joining will only be able to formalize it after the publication of a specific rule containing the respective rules and deadlines.

As soon as the aforementioned rule is published, we will return with more information regarding the implementation of adhesions and enjoyment of the reductions brought about by the new program. 

The Mazzucco & Mello Advogados tax team is available to provide any clarification on this topic.