On February 12, 2021, Decree No. 47,488/2020 was published, regulating the Special Amnesty Program for ICMS ("PEP-ICMS") in the State of Rio de Janeiro, as authorized by ICMS Agreement nº 87/2020.

The deadline to join PEP-ICMS is April 29, 2021.

This amnesty program covers ICMS credits, whether or not registered as overdue tax liability, related to taxable events that occurred up to August 31, 2020, except for those related to ICMS-ST.

Program Benefits

The program offers the following benefits if some conditions, as mentioned below, are met:

Condition: Payment type

Benefit: Reduction of penalties and interest

Lump sum

90%

6 successive monthly installments

80%

12 successive monthly installments

70%

24 successive monthly installments

60%

36 successive monthly installments

50%

48 successive monthly installments

40%

60 successive monthly installments

30%

Requirements to Participate

It is important to note that to qualify for the program, a taxpayer must disclose the debts and withdraw any lawsuits and administrative proceedings that discuss such debts.

Regarding debts enrolled as overdue tax liabilities, attorneys' fees will be due and calculated as a percentage of the debt and based on type of payment:

  • Debts not discussed in a lawsuit: 4% for lump-sum payments and 6% for installment payments
  • Debts under discussion in a lawsuit: 6% for lump-sum payments and 8% for installment payments

Deadlines and Due Dates

The taxpayer will be automatically excluded from the program, without further notification, if the deadline provided in item VII of article 5 of Complementary Law no. 189/2020 is exceeded (48 hours for the taxpayer to settle the outstanding installments or to solve any issues that may give rise to the cancellation), without the settlement of the outstanding installments, with the legal fines, if applicable, or without the filling of an administrative request to correct any existing faults.

In the event the first installment (or lump-sum payment) is not paid until the due date, the enrollment at PEP-ICMS is denied regardless of prior notification.

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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.