Brazil: Sao Paulo City Hall reopens the Incentive Payment Program (PPI 2024)

In brief

On 4 November 2024, Decree No. 63.865/2024 was published. This decree reopened the Incentive Installment Program ("PPI 2024"), created by the Sao Paulo City Hall, which allows for the settlement of tax or nontax debts with reduced fines and interest.

The deadline for joining will be from 05/11/2024 to 31/01/2025.


Contents

More details

Below is a summary of the benefits of the PPI 2024 in the Municipality of Sao Paulo:

  Tax debts

Nontax debts

Target public Individuals or legal entities
Eligible debts
  1. Debts constituted or not that are registered as active debts, with triggering events occurring up to 31 December 2023, are eligible.
  2. Tax debts remaining from installment payments in progress can be transferred to the PPI 2024, as well as debts from previous incentive programs for payment of the debts that have been broken.

Debts constituted or not, registered as active debts, with triggering events occurring up to 31 December 2023

Deadline From 5 November 2024 to 31 January 2025
Discounts

 

  1. 95% reduction in interest and fines and, when the debt is not at the judicial level, a 75% reduction in legal fees, to be paid in a lump sum.
  2. 65% reduction in interest and a 55% reduction in fines and, when the debt is not in the judicial level, a 50% reduction in legal fees, to be paid in 60 installments.
  3. 45% reduction in interest and a 35% reduction in fines and, when the debt is not in the judicial level, a 35% reduction in legal fees, to be paid in 61 to 120 installments.

Note: The reductions in the percentage of legal fees mentioned above do not apply when the legal fee is already set in court, in which case the court decision will be observed.

  1. 95% reduction in interest and fines and, when the debt is not in the judicial level, a 75% reduction in legal fees, to be paid in a lump sum.
  2. 65% reduction in interest and fines and, when the debt is not in the judicial level, a 50% reduction in legal fees, to be paid in 60 installments.
  3. 45% reduction in interest and fines and, when the debt is not in judicial level, a 35% reduction in legal fees, to be paid in 61 to 120 installments. 

Note: The reductions in the percentage of legal fees mentioned above do not apply when the legal fee is already set in court, in which case the court decision will be observed.

Conditions for payment
  1. In a lump sum; or
  2. In up to 120 equal and successive monthly installments. The amount of each installment, when paid, will be increased by interest equivalent to the SELIC interest rate, considering that the number of installments will impact the discount as per the item above.
  3. If the company has judicial deposits presented as collateral for debts it would like to include in the PPI, they can only be withdrawn to pay the debt, with any remaining balance remaining in the PPI 2024.
Requirements Legal entities must maintain their registered office in the Municipality of Sao Paulo while the installment plan is in force.

 

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