Press Room

August 11, 2017

From Brazil: State Amnesty Program

José Roberto - Andersen Tax in Brazil, a member firm of Andersen Global

The São Paulo State Government obtained the legislative approval for an amnesty program called Programa Especial de Parcelamento (PEP). The amnesty program depends on a decree to be issued by their government.

PEP will grant benefits for the taxpayers in order to collect their debts and reduce known tax exposures not assessed by the tax authorities yet.

Mentioned benefits comprise reductions on the payment of debts of the São Paulo State VAT (ICMS) due through December 31, 2016, following:

  1. Immediate payment: reduction of 75% of the fines and 60% of the interests
  2. Payment in up to 60 installments: reduction of 50% of the fines and 40% of the interests

The installments will be subjected to the following interests:

  • 0,64% from the 1st installment to the 12th installment
  • 0,80% from the 13th installment to the 30th installment
  • 1,00% from the 31st installment to the 60th installment

The estimated period to join the PEP is from July 15, 2017 to August 15, 2017.