On June 12, 2015, the State of Rio de Janeiro published a new law, Law 7.020, that gives the Administration power to make Tax Settlements (Termo de Ajuste de Conduta Tributária) with ICMS taxpayers in the context of court or administrative proceedings involving disputes over the interpretation of tax legislation with respect to tax debts assessed on or before June 12, 2015, or with ICMS taxpayers that voluntarily report tax debts by that date. Tax Settlements are only available for ICMS tax debts of BRL 10 million or more.
Under the terms of a Tax Settlement, tax debts can be paid in a single installment, with cancellation of 100% of the fine (or cancellation of 60% of the fine, if the tax debt is composed of a fine only), and a reduction of 60% in late-payment interest.
ICMS taxpayers can apply for a Tax Settlement up to July 31, 2015.
State Law 7.200 also provides that the Administration must submit to the legislature, within 90 days, a bill to address payment of tax debts in installments, reduction of fines and other charges, and the use of accumulated ICMS tax credits to pay off tax debts.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.