Keywords: Brazil, Value-added Tax, VAT, tax amnesty program,
On November 06, 2015, ICMS Convention No. 127/2015, passed by the National Finance Policy Council – CONFAZ was published on the Official Gazette . Such Convention authorizes the State of Espírito Santo to relaunch the Tax Amnesty Program to waive or reduce penalties and interest relating to tax debts.
The Convention authorizes the reduction of penalties and interest relating to ICMS debts, irrespective of whether there has been an assessment notice or whether the tax has been recorded as readily enforceable, including taxes that are subject to legal proceedings, in each case whose tax events occurred until September 30, 2015. The payment – including debts relating to noncompliance with ancillary obligations - may be reduced by up to 90% in case of cash payment.
Even though this scheme relaunches the Tax Amnesty Program previously offered under Convention No. 30/2015 and Law No. 10,376/2015, tax benefits were reduced by said Convention, since now payment can be made: (i) in cash, with a reduction of 90% of the fines and interest; (ii) in up to 30 installments, with a reduction of up to 85% of the fines and interest; or (iii) in up to 60 installments, with a reduction of up to 70% of the fines and interest. For tax debts in an amount in excess of R$ 50.000,00, payment can be made with reductions ranging from 85% to 40% in up to 120 monthly installments.
The final date for application purposes is February 29, 2016.
So far Espírito Santo State has not yet enacted any law regulating these provisions.
We remain at your entire disposal to provide any clarification that might be required.
Originally published 11 November 2015
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