Publications

On March 19 of 2024, the Brazilian Federal Revenue Service published the Notice of Adhesion Transaction for the Zero Litigation Program 2024. Can join the Program individuals and companies that have debts under discussion in administrative proceedings with a value equal or less than R$ 50,000,000.00.

Companies that meet the legal requirements set out in the Public Notice and are interested in joining the Zero Litigation Program must apply for Membership via e-CAC until 31.07.2024. The legal requirements for joining the program include:

• The adherent’s waiver of any administrative or judicial challenges or appeals previously filed to discuss the debts transacted.
• The member’s irrevocable and irreversible confession regarding the debts included in the transaction.
• Payment of the first installment by the last working day of the month in which they join.

The Program also provides for installments and discounts for debts, according to the degree of recoverability, under the terms below:

• Debts classified as irrecoverable or difficult to recover may have a reduction of up to 100% in the amount of interest, fines, and legal charges, subject to a limit of up to 65% of the full amount of the debt being negotiated. To join, the taxpayer must make a down payment of 10% of the debt, in up to 5 successive monthly installments, and the remainder in up to 115 installments. Also in this category, the notice provides for the use of credits arising from tax losses and negative CSLL basis, which can reach up to 70% of the debt amount, with an initial payment of at least 10% of the outstanding balance in up to 5 successive monthly installments, with the remaining balance divided into up to 36 installments.
• Debts with a high or medium prospect of recovery can be included in the Program by paying 30% of the consolidated value of the debt in up to 5 successive monthly installments, with the remaining balance being paid in up to 115 installments. This category also provides for settlement with credits resulting from tax losses and negative CSLL calculation bases, limited to 70% of the total debt amount and settlement in up to 36 installments of the residual amount.

Finally, the Zero Litigation Program provides for the inclusion of debts of up to 60 minimum wages of individuals, micro-enterprises or small businesses, regardless of the taxpayer’s ability to pay or the degree of recoverability of the debt, by paying 5% of the amount transacted (in 5 monthly and successive installments), and paying the remaining amount with a reduction of up to 50% of the amount of the debt (including the principal amount), as shown in the table below:

Our Tax team is available to provide clarification and guidance on the subject.