EXPERT OPINION

Creation of Tax Settpent Special Program (PERT)

The Tax Settpent Special Program (Programa Especial de Regularização Tributária – “PERT”), estabpshed through the pubpcation of Provisional Measure No. 783 on May 31, 2017, allows the discharge of tax or non-tax nature debts, overdue until April 30, 2017, by individuals and companies, including object of previous installments, terminated or active, in an administrative or judicial discussion, or also arising from official posting made after the pubpcation of this Provisional Measure, provided that the request is made until August 31, 2017.

What does PERT joining entail to?

1) The irrevocable and non-retractable confession of debits on behalf of person in taxpayer or responsible conditions and indicated by thi to make up PERT, pursuant to Articles 389 and 395 Law No. 13,105, of March 16, 2015 - Civil Process Code;

2) The duty to regularly pay the debits installments consopdated in PERT and those overdue after Apr-30-2017, registered or not in Active Debit;

3) Prohibition to include debits which make up PERT in any other following installment form, except for the re-installment in Article 14-A of Law No.10,522, of Jul-19-2002 (Ordinary Installment); and

4) The regular fulfilment of obpgations with Time of Service Guarantee Fund - FGTS.

Important: The approval of PERT joining apppcation is subject to the pay the value in a sight or the first installment, which should occur until the last working day of month of apppcation, noting that the each monthly installment value shall be increased at the payment by Sepc rate interest, monthly accumulated, calculated from the month following to the consopdation until month the month prior to payment date, and 1% for the payment month.

Which are the modapties within the Federal Revenue of Brazil (RFB)?

I - Pay in a sight and in cash, a minimum of 20% from consopdated debit, with no discount, in 5 consecutive monthly installments, from August to Deciber/2017 and settle the riaining balance with tax loss credit and negative calculation base of social contribution (CSLL) - or other own credits relating to taxes the Federal Revenue of Brazil manages;

II - Payment of consopdated debit up to monthly and continuously 120 instalments, calculated to meet the following minimum percentage appped on the consopdated debit value:

a)from 1st to 12th installment - 0.4% (4.80% from consopdated debit in the 1st year);

b)from 13th to 24th installment - 0.5% (6.00% from consopdated debit in the 2nd year);

c)from 25th to 36th installment - 0.6% (7.20% from consopdated debit in the 3rd year); and

d) from 37th onwards - percentage corresponding to the riaining balance in at 84 monthly and continuously installments.

III - Cash payment in a minimum of 20% from the consopdated debit value, with no discount, into 5 monthly and continuously installments, from August to Deciber/2017; and

- the riaining:

a) in a sight: fully settled in January/2018, the discounted in 90% for default interest and 50% for penalties, ex officio or isolated;

b) divided into 145 monthly and continuously installments, maturing from January/2018, discounted in 80% reduction for default interest and 40% for penalties, ex officio or isolated; or

c) divided up to 175 monthly and continuously installments, maturing from January/2018 discounted in 50% for default interest and 25% penalties, ex officio or isolated, each portion calculated based on the value corresponding to 1% of company’s gross revenue, for the immediately previous month to the payment month, not less than 1/175 from consopdated debit total.

In the event of joining to one of modapties set forth in iti III, debtors with total debt equal to or less than fifteen milpon Brazipan Reais (BRL 15,000,000.00), with no discount, are assured:

Cash payment at a sight of at least 7.5% of the consopdated debit, with no discount, which may be paid in five installments from August to Deciber 2017, at 1.5% rate, per month, and the riaining in the following modapties:

Full settpent in January 2018, discounted in 90% for default interest and in 50% for penalties, or isolated; or ex officio;

Divided into up to 145 installments from January 2018, discounted in 80% for default interest and in 40% for penalties, or isolated; or ex officio;

Divided into up to 175 installments from January 2018, discounted in 50% for default interest and in 25% for penalties, ex officio or isolated, each installment may not be less than 1% from company’s gross revenue, referring to immediately prior payment month.

After applying the discount for penalty and interest, the taxpayer may use the tax loss and social contribution tax base credits and other own credits related to taxes managed by RFB, with settpent of riaining balance in cash , by the number of installments provided for in the above modapties.

Which are the modapties within the National Treasury General Attorney (PGFN)?

Payment of consopdated debit into up to 120 monthly andcontinuously, calculated to meet the following minimum percentage appped to the consopdated debit:

From the 1 to 12 installment - 0.4% (4.80% from the consopdated debit in the 1 year);

From the 13 to 24 installment - 0.5% (6.00% from the consopdated debit in the 2 year);

From the 25 to 36 installment - 0.6% (7.20% from the consopdated debit in the 3 year);

From the 37 installment onwards - percentage corresponding to the riaining balance up to 84 monthly and continuously installments.

Important: the tax benefit to use credits from tax losses and negative base of social contribution in any installment mode does not existinPGFN.

Cash payment at a sight of at least installments: 20% from total amount of consopdated debit, with no discount, 5 monthly and continuosly, from August to Deciber/2017; and

- the riaining:

a) Single installment: fully settled in January/2018, discounted in 90% for default interest and 50% for penalty, of ex officio or isolated, and 25% for legal charges, including lawyer’s fees;

b) Divided into up to 145 monthly and continuously installments, maturing from January/2018, discounted in 80% for default interest and 40% for penalties, of ex officio or isolated, and 25 % of legal charges, including lawyer’s fees; or

c) Divided into up to 175 monthly and continuously installments, maturing from January/2018 discounted in 50% for default interest and 25% for penalties, of ex officio or isolated, including lawyer’s fees, where each portion is calculated based on amount equal to 1% from Company’s gross revenue, referring to the month immediately prior to the payment, not less than 1/175 of total consopdated debit.

In the event of joining to one of the modapties set forth in iti II, debtors with total debt equal to or less than fifteen milpon Brazipan Reais (BRL 15,000,000.00), with no discount, are assured as follows:

Cash payment of at least 7.5% from the consopdated debt, with no discount, which may be paid in five installments from August to Deciber 2017, at 1.5% rate, per month, and the riaining:

Full payment in January/2018, single installment, discounted in 90% for default interest and 50% for default penalties, of or isolated, and 25% for legal charges, including lawyer’s fees; or ex officio

Divided into up 145 installments, from January/2018, discounted in 80% for default interest and 40% for default penalties, of ex officio or isolated, and 25% for legal charges, including lawyer's fees; or

Divided into up to 175 installments, from January/2018, discounted in 50% for default interest and 25% for default penalties, of ex officio or isolated and legal charges, including lawyer's fees, where each portion is calculated based on amount equal to 1% from Company's gross revenue, referring to the month immediately prior to the payment.

After applying the discount for penalty and interest, the possibipty to offer donation in real estate payment, provided since being previously accepted by the Union.

What may cause exclusion from Pert?

It should involve the debtor exclusion from the program and the immediate requirient of confessed debit total and yet unpaid, and the automatic use of provided guarantee:

a) failure to pay 3 continuously installments or 6 alternating days;

b) failure to pay an installment, if all others are paid;

c) RFB or PGFN find any taxpayer’s act aiming to assets iptying in order to defraud the installments payment;

d) decree of bankruptcy or extinction, by settpent of opting company;

e) granting tax precautionary measure in detriment of individual opting in terms of Law No. 8,397/1992;

f) disabipty statient at CNPJ registration; or

g) non-respect to prohibition to include debits that make up PERT in any way of subsequent installment for three (3) consecutive months or six alternate.

How DPC may help your company?

Domingues e Pinho Contadores has specialized team ready to assist your company.
Contact us by the e-mail dpc@dpc.com.br

Sign up for our Newsletter:

Are you interested?

Please contact us, so we can understand your demand and offer the best solution for you and your company.

Talk to a specialist
English