10/30/2019
A regulation (ICMS Agreement No. 152) was issued on October 11 allowing the São Paulo State government to create a new installment agreement program for the payment of overdue taxes on the circulation of goods and services (ICMS) and to waive or reduce applicable fines and other statutory charges.
Under this regulation, the program may cover taxes arising from transactions occurred by May 31 this year, regardless of whether they have been assessed or not, and whether they have already been classified as overdue liabilities or not, provided that the taxpayer voluntarily reports them to the tax authority.
At the taxpayer’s request, taxes are included in the installment agreement by adding together the amount payable as ICMS and all statutory charges. Installments will be paid by direct debit from the taxpayer’s checking account. Under the installment program, payments can be made as follows:
- A lump sum payment, with up to 75% discount on punitive and late payment fines and up to 60% discount on other statutory charges;
- In up to 60 monthly equal and consecutive installments, with up to 50% discount on punitive and late payment fines and up to 40% discount om other statutory charges, subject to a monthly interest rate (depending on the number of installments).
By applying for an installment payment plan, the taxpayer will acknowledge that all amounts are due and payable, which means that taxpayers must first desist from any judicial lawsuits and administrative appeals that may be ongoing with respect to such taxes.
State rules are to set the deadline for the taxpayer to apply for an installment payment plan, which cannot be after December 15.
Thus, the São Paulo state government is expected to publish the installment agreement program rules in the next days.
Our tax practice team is prepared to provide you with guidance with on requests for installment agreements concerning ICMS.
