São Paulo City Hall creates Installments Incentive Program - PPI 2017

Sao Paulo City Hall established the Installment Incentive Program - PPI 2017 by publishing Law No. 16,680/17 in the Official Gazette of the State, which allows the adjustment of tax and non-tax debts, accrued or not, even those registered in Active Debt, judged or to judge for triggering events occurred up to Dec-31-2016.

Inclusion of debts:

The taxpayer himself should select the debts payable in installments in the program. After establishing which debits should be considered, it is possible to simulate the installment before joining. The minimum portion should amount to BRL 50.00, for individuals, and BRL 300.00, for companies.

São Paulo City Hall provided the following table with a summary of procedure in the system, as each debt:

DEBTS - SUMMARY TABLE
Tax	Key number
ITBI	Enter the number or ITBI Auto Notification label. The taxpayer who does not have it should schedule service at http://prefeitura.sp.gov.br/agendamentosf to request this number.
Property tax (IPTU)	Put the taxpayer's property tax number (SQL) and the charge will appear automatically.
AII	Automatically selected not requiring typing.
AII-CCM Generic	Enter the AII number.
Notice Receipt (payment slips)	Automatically selected not requiring typing.
Debits Spontaneous Candid Confession	Refers unmade furniture tax. With DUC data - Taxpayer’s Unified Statement, which should indicate the debts, include the data as below and following the guidelines: (1) Select the CCM; (2) Choose the tax (ISS TFE, TFA and TRSS, from 2011 on); (3) Enter the influence with month and year (mm/yyyy); (4) Enter the service code or tax; (5) Enter the tax amount (Remember that it is the historical value, ie the amount due on time, without correction, fines and interest. The program will calculate all legal charges). Attention: If the ISS collection is done by NFSe and do not register anything here! The taxpayer or his representative may include the NFSe debts in specific field at debts screen “NF-e - NOTA FISCAL ELETRÔNICA DE SERVIÇOS ISS” (NF-e - ISS SERVICES ELECTRONIC INVOICE).
Improvement Contribution	Enter the taxpayer's property tax number (SQL) and the charge will automatically appear.
TRSS until 2010	Enter the taxpayer's number appearing TRSS payment slips, always beginning with "500", for debts until 2010. For debts from 2011, in select Candid Confession Debits and proceed according to the instructions for that item.
TRSD 2003-2005	Enter the taxpayer's property tax number (SQL) and the debits should automatically appear.
Construction Fee	Enter the Administrative Process number.
Elevator rate	Enter the elevator plate number.
Estate Penalties (Notary and ITBI)	Enter the number CPF or CNPJ number office holder.
Municipal Penalties Postures	Enter penalty number.
	The citizen who does not have the fine number may request their relationship in regulatory agencies. (Regional Municipalities http://www.prefeitura.sp.gov.br/cidade/secretarias/regionais/address)
Nontax debts (JUD)	Enter the Administrative Process number.
NFe - Electronic Service Invoice (ISS)	When the taxpayer is NFS issuer and the system will automatically direct you to NFS-e system, click in “Gestão de Dívida” (Debt Management) and select the debts you want to include in the installment, recording the debts selection. Then again, go to the PPI system.
Debts stated in DSUP	Automatically selects without typing.

Charges related to traffic law violations, obligations from contractual nature, compensation payable to São Paulo City Hall for damage to its assets and ongoing installment balances administered by the Municipal Department of Finance are not included, except the Tax Administration Installment (Parcelamento Administrativo Tributário - “PAT”) transfer, which shall be at the system.

Payment method

a) Single installment;

b) up to one hundred twenty (120) monthly, equal and successive installments, and the amount of each of them at the payment shall bear interest equivalent to Settlement and Custody Special System - SELIC reference rate, monthly accumulated, calculated from the month following the formalization until the previous month to payment, and one percent (1%) for the month in which the installment is being paid.

Joining period

Taxpayers will have to join the program up to Oct-31-2017. However, taxpayers should already include the balance of debts in PAT until Oct-13-2017.

Benefits

Tax debts

a) Discount of eighty-five percent (85%) from the default interest amount and seventy-five percent (75%) from the penalty, if paid in a sight;

b) Discount of sixty percent (60%) from the default interest amount and fifty percent (50%) from the penalty, if paid in installments.

Non-Tax debts

a) Discount of eighty-five percent (85%) from the default charges amount levied on the main debit, if paid in a sight;

b) Discount of sixty percent (60%) from the adjusted default charges amount levied on the main debit, if paid in installments.

Exclusion

The exclusion from installment plan is foreseen in the following cases:

a) Non-compliance with any of the requirements established by Law No. 16,680/17 or the regulatory Decree of the Program;

b) Delay to pay the 1^st or single installment for over than sixty (60) days;

c) Non-payment of three, consecutive or not, installments for over than ninety (90) days;

d) Non-payment of any installment for over than ninety (90) days from the first business day after the last installment maturity;

e) Non-payment of any residual balance from installments for over than ninety (90) days, starting from the first business day after this balance maturity;

f) Failure to prove the abandonment of actions or embargoes to tax enforcement within sixty (60) days from the approval date;

g) Decreeing bankruptcy or dissolution by termination of companies;

h) Company’s spin-off, unless the new company resulting from the spin-off or the one who incorporates part of equity assume jointly the PPI-2017 obligations with the spun-off.

Important: Where occur hypotheses "c", "d" and "e", the taxpayer will not be excluded from PPI in 2017 the remaining outstanding balance is paid infull by the last business day of the month following the occurrence of the event.