By Mariana Martins and Gustavo Paulucci Teixeira

The City of Rio de Janeiro, through Decree No. 46,486 of September 2019, regulated the program to encourage the settlement of tax credits, whether or not registered as active debt, for companies in bankruptcy or judicial recovery. 

Interested parties have 60 days, counting from the publication of the aforementioned Decree that occurred on Monday (16.9.2019), to join the program. The deadline may be extended for another 30 days, at the discretion of the Municipal Executive Branch.

Among the benefits, we highlight the reduction of 50% on the consolidated debt of municipal taxes with taxable events occurring up to December 31, 2017, for companies that are in the process of bankruptcy and of 30% for companies in judicial recovery. 

A second option for debtors undergoing judicial recovery would be to pay off the debt in installments, guaranteeing a reduction of 30%, applied to the consolidated debt, monetary adjustment, late payment charges and fines.

Those interested in joining the “Recupera Rio” program must submit a request to the Municipal Finance Department – SMF, for credits not registered as active debt, or to the Municipal Attorney General's Office – PGM, for credits registered as active debt.

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