Keywords: tax debt payment, payment program, Sao Paulo

On January 8, 2015, Decree No. 55.828/2015 was published in the Official Gazette. The Decree regulates the terms and conditions of the Payment Program established by São Paulo Municipal Law No. 16,097/2014.

The Payment Program allows the payment of the debt with the Municipality of São Paulo in a lump sum or up to 120 monthly installments.

The Program encompasses tax and non-tax debts, assessed or not, registered as collectible or not, in which the tax triggering event had occurred before 12.31.2013, with reductions of penalties and interest. However, debts related to violation of traffic laws, contractual obligations, indemnity for damages awarded to the municipality or its assets, or debts related to so-called ''Simples Nacional'' (simplified tax regime) may not be included.

The main aspects of the Program are described below:

Tax Debts:

  • In a lump sum: 85% reduction of default interest, 75% reduction of fine and 75% reduction of attorneys' fees.
  • Within 120 months: 60% reduction of default interest, 50% reduction of fine and 50% reduction of attorneys' fees.

Non-tax Debts:

  • In a lump sum: 85% reduction of default charges and 75% reduction of attorneys' fees.
  • Within 120 months: 60% reduction of default charges and 50% reduction of attorneys' fees.

As usual, application to the Program is conditioned to the recognition of the debt and the withdrawal of any administrative or judicial challenge on the matter.

The Decree sets forth April 30, 2015 as the closing date for application to the Payment Program.

Originally published 13 January 2015

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Founded in 2001, Tauil & Chequer Advogados is a full service law firm with approximately 90 lawyers and offices in Rio de Janeiro, São Paulo and Vitória. T&C represents local and international businesses on their domestic and cross-border activities and offers clients the full range of legal services including: corporate and M&A; debt and equity capital markets; banking and finance; employment and benefits; environmental; intellectual property; litigation and dispute resolution; restructuring, bankruptcy and insolvency; tax; and real estate. The firm has a particularly strong and longstanding presence in the energy, oil and gas and infrastructure industries as well as with pension and investment funds. In December 2009, T&C entered into an agreement to operate in association with Mayer Brown LLP and become "Tauil & Chequer Advogados in association with Mayer Brown LLP."

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This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.