Please be advised that both the Brazilian Federal Revenue ("RFB") and Office of the Counsel for the Federal Treasury ("PGFN") have already issued their own regulation regarding the program. RFB, through RFB Instruction No. 1752/2017, and PGFN, by PGFN Regulation No. 1032/2017, which amended PGFN Regulation No. 690/2017.
It is also important to highlight that RFB has made available, as an annex to Instruction No. 1752/2017, an Requirement for Withdrawal of Objection or Administrative Appeal. That means that what was previously done via petition filed within the administrative proceeding, will now be done through a document for this specific purpose and which should also be presented to RFB. It is interesting to note that this document has a field to be used in case of partial withdrawal, which, without any doubt, tends to generate more legal certainty for the taxpayer.
Another detail is that both the RFB and the PGFN have expressed that the migration will be automatic for taxpayers that joined while Provisional Presidential Decree No. 783/2017 was in force. In these cases, it is possible to change the settlement mode that had been previously chosen.
Among the main changes brought by Law No. 13.496/2017, it is essential to highlight the following:
- Decreased minimum down payment amount for debts not exceeding R$15 million, changed to 5% (five per cent) of the consolidated debt amount, without deductions, in up to five monthly and successive installments;
- Possible inclusion of debts regarding taxes that may be withheld, third-party discount or subrogation;
- Possible inclusion of debts arising from assessment by the tax authority on its own initiative in which fraud, collusion and/or evasion was alleged;
- Possible use, for debts enrolled as overdue tax liability within the Office of the Counsel for the Federal Treasury's jurisdiction, of tax losses, CSLL negative tax base and other liability related to taxes managed by RFB, if the debt does not exceed R$15 million;
- New settlement modality under the Brazilian Federal Revenue, by means of payment in kind of at least 24% of the consolidated debt in twenty-four monthly and successive installments, and settlement of the remainder by using tax losses and CSLL negative tax base or other liability related to taxes managed by the Brazilian Federal Revenue.
Lastly, some discount percentages were increased for the settlement option of remaining debt, after down payment is made:
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.