6/30/2021
Last month, the Municipality of Sao Paulo enacted a new installment payment program of municipal tax debts, Law n. 17.557/2021. The installment was a tax measure to combat the pandemic (COVID-19) economic crisis.
The program is an opportunity for the taxpayers to pay their municipal tax debts, such as debts related to tax on property and tax on services, for example. The debts can be paid in one installment, or in successive monthly installments, with interests and fine reduction, and monetary correction.
Contractual debts, violations to the environmental law and remaining values of other installments program will not be included in that installment payment program.
The taxpayers can settle their debts in up to 120 successive monthly installments with discounts. For payments in one installment, the debt will be reduced in 85%, and the fine in 75%. For payments in successive monthly installments, the debt will be reduced in 60% and the fine in 50%.
Before entering the installment program, it is important to be careful about the payment terms. Default for more than 3 months results in immediate exclusion, without prior notice.
The deadlines for joining the PPI will still be announced by the Municipality of São Paulo
Our tax team is available to provide further information and guidance on these and other topics.
Coauthors: Thais Ribeiro Casado and Augusto Périco
