On April 12, 2016, Ordinance PGFN/RFB Nº 550/2016 was published in the Official Gazette, establishing the terms and procedures to be adopted for the consolidation of social security debts included in the so-called "REFIS da Copa" special installment program, which had been paid in installments or paid in cash with tax losses, as outlined in Section 2of Law No. 12,996/2014, 34 and 40 of Provisional Measure No. 651/2014 and by Administrative Ruling No. 13/2014.

This consolidation should be performed on the websites www.receita.fazenda.gov.br or www.pgfn.gov.br between June 7 and June 24, 2016. The taxpayers are required to inform: (i) the debts paid in cash with tax losses; (ii) the debts paid in installments and the number of installments; and (iii) the amount of tax losses compensated for.

If paid in installments, all the installments due until the month prior to the consolidation period must have been paid before the consolidation. If payed in cash with tax losses, the whole balance due must have been paid before the consolidation.

If the taxpayer intends to include open debts related to other installment programs in the REFIS da Copa, it must formally withdrawal the judicial suit and renounce any rights relayed to it before May 6, 2016.

Visit us at Tauil & Chequer

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."

© Copyright 2016. Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. All rights reserved.

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.