By Mariana Martins and Gustavo Paulucci Teixeira
The Government of the State of São Paulo, authorized by ICMS Agreement No. 152/19, instituted a new Special ICMS Debt Installment Program (“PEP ICMS 2019”) with reduction of fines and other legal additions, which covers debts of the aforementioned tax registered or not in active debt, related to taxable events that occurred up to May 31, 2019. Said program was instituted through Decree No. 64,564/2019, published this Thursday (11/07/2019), the initial term for its adhesion.
The aforementioned deadline ends on 15.12.2019, and the adhesion must be formalized by the taxpayer through access to the portal www.pepdoicms.sp.gov.br, using the same password to access the Electronic Tax Office (PFE).
We illustrate below, in summary form, the conditions for joining PEP ICMS 2019 and the respective reductions:
| Payment methods | Financial Accruals | Discounts on interest and fines |
| In sight | – | Reduction of 60% in the value of interest on tax and punitive fines and reduction of 75% in the updated value of punitive and late payment fines |
| Up to 12 installments | 0.64% per month | Reduction of 40% in the value of interest on tax and punitive fines and reduction of 50% in the updated value of punitive and late payment fines |
| From 13 to 30 installments | 0.80% per month | |
| From 31 to 60 installments | 1% per month |
For debts required by means of a Notice of Violation and not registered as active debt, the PEP/ICMS 2019 provides for additional and cumulative discounts on the punitive fine, namely: (i) 70% for membership within 15 days from the date of notification of the AIIM, (ii) 60% for membership within 30 days of notification of AIIM, or (iii) 25% in other cases.
We emphasize that tax debts arising from tax substitution may be paid in up to 6 (six) consecutive monthly installments, applying, in this case, a financial increase of 0.64% per month, and that the PEP/ICMS 2019 allows the inclusion of fines for non-compliance with accessory obligations that occurred up to 05/31/2019 and remaining balances from previous installments, such as PPI and other PEPs broken up to 06/30/2019, provided that the respective debts are registered as active debt.
Adherence to PEP ICMS 2019, as with other installment plans, implies the irrevocable and irrevocable confession of the debts included, making it necessary for the taxpayer to waive any administrative or judicial defense or appeal, as well as to withdraw those already filed.
The Mazzucco & Mello Advogados tax team is available to provide any clarifications regarding PEP ICMS 2019 and to assist your company in formalizing its membership in the program.
