Amid the crisis caused by the pandemic, another measure was published this week by the Attorney General's Office of the National Treasury (PGFN) so that individuals and legal entities can negotiate their debts with the Union. This is the reopening of the deadline for joining the Fiscal Recovery Program, which allows taxpayers to enter into tax transactions and with a new feature: the installment payment of debts of companies in judicial recovery.

Tax Recovery Program

According to the rules of PGFN Ordinance No. 2,381/2021, all debts registered as active debt of the Union until August 31, 2021 may be negotiated. The deadline for adhesion will begin on March 15 and will be available until September 30 of this year, and must be done exclusively through the PGFN's Regularize portal.

The program is valid for all taxpayers, individuals and legal entities, including companies undergoing judicial recovery, and debt negotiations may be carried out in the form of an extraordinary transaction, as provided for in PGFN Ordinance No. 9,924/20, exceptional transaction (PGFN Ordinance No. 14,402/20); transaction in small value tax litigation (Notice PGFN No. 16/20), and exceptional transaction for Simples Nacional debts (PGFN Ordinance No. 18,731/20).

In the extraordinary modality, there is provision for debt installments in up to 81 months, a period that may be extended to 142 months in the case of individual taxpayers, individual entrepreneurs, micro-enterprises, small businesses, educational institutions, Santas Casas de Misericórdia and cooperative societies.

Judicial Recovery

For companies undergoing judicial recovery, the text of Ordinance PGFN No. 2,382/2021 regulates the negotiation of debts registered as active debt and FGTS. These taxpayers will be able to settle their debts in a period of up to 145 installments (in the case of individual entrepreneurs, microenterprises and small businesses) and 120 installments for other legal entities. For taxpayers undergoing judicial recovery who develop social projects, the period will be up to 132 months.

Under the terms of the ordinance, the maximum limit for reductions will be up to 70% of the debt. For small-value debts (up to 60 minimum wages) of companies under judicial recovery, discounts of up to 50% of the total value of the credit and a maximum payment term of up to 60 months are provided for.