Rio de Janeiro City Hall: the tax debitment for companies in judicial reorganization is regulated

The Decree 46,486, published in the Official Gazette of the Municipality of Rio de Janeiro on Sep-16-2019, provided for the incentive program for the settlement of tax credits of debtors in bankruptcy or in judicial reorganization.

This program was established by the Law 6365/2018 and provides for the incentive to discharge tax credits of debtors in bankruptcy or judicial reorganization, as follows:

a) Deferred tax assets enrolled in active debt, except for those related to debitment in progress; and

b) Deferred tax assets not enrolled in the active debt related to the Tax on Services - ISS, the Tax on Tax on Property and Urban Territorial Property (IPTU) and the Tax on Home Collection Waste (TCL), except those related to debitment in progress for any of these taxes.

The program gives such debtors the settlement of debts with the following benefits:

I - for debtors in bankruptcy:

50% reduction, applicable to the consolidated tax debt, monetary restatement and arrears increases and 100% of the criminal fines, for cash payment, within the maturity date of the respective payment slip;

II - for debtors in judicial reorganization:

a) 50% reduction: applicable to the consolidated tax debt, monetary restatement, arrears and penalty for cash payment, within the maturity date of the respective payment slip; or

b) 30% reduction: applicable to the consolidated tax debt, monetary restatement, arrears increases and fines, in accordance with the legislation governing ordinary debitment, including the maximum number of installments.

The term for joining to the program will be sixty days (60) from the publication of the Decree 46,486, which may be extended for more thirty (30) days, at the Executive Power's discretion.