A tax amnesty law was published in the Official Gazette of 10 July 1997. Under the law, VAT (ICSM) due until 30 May 1997 is forgiven, provided it does not exceed BRL 1,500. Taxpayers had until 11 August 1997 to apply for the tax amnesty.
Taxpayers whose VAT liability exceeded BRL 1,500 and who were willing to pay the VAT due until 30 May 1997 qualified for a reduction in the interest on overdue tax payments and related fines. The reduction ranged from 55% to 100%. Taxpayers could pay the VAT due in several installments, and the reduction percentage varied with the number of installments. Those willing to pay the entire tax in one payment were granted a total forgiveness of penalties and interest.
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.
For further information contact Carlos S Romero, Deloitte Touche Tohmatsu, Sao Paulo, Brazil on Tel: +55 11 257 0122, Fax: +55 11 258 8456.