Brazil: Sao Paulo City Hall publishes Municipal Law No. 10,095/2024 establishing the Incentive Installment Program

04 Apr 2024    2 minute read

In brief

On 19 March 2024, Municipal Law No. 10,095/2024 was published, establishing the Incentive Installment Program (PPI) in the City of Sao Paulo. This program allows for the settlement of tax or non-tax debts with reduced fines and interest.

The PPI is pending regulations to take effect.

The law also includes changes to legislation in accordance with Constitutional Amendment No. 132/2023, which modified the National Tax System and implemented measures to resolve disputes between tax authorities and taxpayers outside of the judicial system.

Contents

More details

Below is a brief summary of the benefits of regulating PPI 2024 in the Municipality of Sao Paulo. Tax and non-tax debts are eligible for individuals or companies:

  Tax debts Non-tax debts
Target audience  
Individuals or companies.
Eligible debts
  1. Debts, whether constituted or not, that have triggering events occurring up to 31 December 2023, and registered as active debt.
  2. Tax debts remaining from installment payments in progress can be transferred to the 2024 incentive installment payment program, as well as debts from previous installment payments that have been broken.
Discounts on debts
  1. 95% reduction in the amount of interest on arrears and fine, for payment in a lump sum.
  2. 65% reduction in interest on arrears and a 55% reduction in fines for payment in 60 installments.
  3. 45% reduction in interest on arrears and a 35% reduction in fines, for payment in 61 to 120 installments
  1. 95% reduction in the amount of interest on arrears and fine, for payment in a lump sum.
  2. 65% reduction in the amount of interest on arrears and fine, for payment in 60 installments.
  3. 45% reduction in the amount of interest on arrears and fine, for payment in 61 to 120 installments.

 

In addition, the law introduced changes regarding interest on overdue debts. The interest rate is now based on the Selic rate, which accrues monthly and is charged only once, starting from the first day of the month following the due date. A 1% penalty is applied in the month in which the payment is made.

Regarding the adaptation of legislation to EC 132/2023, which pertains to tax reform, the legislation addresses issues related to setting ISS rates, allocating FEMATF resources, adjusting the Municipal Tax Council (CMT), and other changes.

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