The Government of the State of São Paulo, authorized by of ICMS Agreement 152/2019, established a new Special Installment Program, for the settlement of ICMS tax debts arising from taxable events occurring up to May 31, 2019, enrolled as executable or not.

Pursuant to Decree No. 64,564, published November 6, 2019, debts may be settled with a reduction of (i) 75% of fines and 60% of interests in the event of payment in one installment; (ii) 50% of fines and 40% of interests in the event of payment in up to 60 installments.

Discounts on punitive fines will be increased if taxpayer chooses to join the Program to settle debt resulting from Tax Assessment not yet enrolled as executable, with a cumulative reduction of (i) 70% in the event of adhesion within 15 days from the notification of the tax assessment and payment in one installment; (ii) 60% in the event of adhesion between 16 and 30 days from the notification of the tax assessment for payment in one installment; and (iii) 25% in other cases.

The payment of debts by means of the Program implies irrevocable and irreversible confession of the tax debt, as well as express waiver of any defense or administrative or judicial appeal, including those already filed, which must be proved to the State Attorney's Office within 60 days. In addition, for debts charged on tax foreclosure, the taxpayer shall not be released of presenting guarantee, nor the payment of costs, court expenses and attorney's fees, reduced to 5% of the amount of tax debt.

The taxpayer is not allowed to use accrued credits, credits from writ of payment nor tax to be reimbursed (as provided in paragraph 2 of article 270 of the ICMS Regulation) for the settlement of installments.

Please note that taxpayers may join the Program between November 7 and December 15, 2019, by accessing the website

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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."

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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.