Zero Litigation 2024  

Description  

The Zero Litigation Program enables individuals and companies to renegotiate tax debts discussed with the Brazilian Federal Revenue Service (RFB) at the administrative level, as long as the amount in dispute does not exceed BRL 50 million per case.  

Eligible debts  

Administrative debts related to social contributions and administrative litigation, as follows:  

Social contributions:  

• Levied on remuneration paid or credited by companies to insured persons under their employment.  

• Due from household employers.  

• Imposed on account of tax substitution.  

• Legally due to third parties and paid via the Federal Revenue Payment Form (DARF).  

Administrative litigation:  

• Levied on remuneration paid or credited by companies to insured persons under their employment.  

• Governed by Law No. 9,784/1999.  

• Initiated by an injunction in a writ of mandamus.  

Benefits  

The program allows for the use of credits from tax loss carryforwards and negative CSLL calculation bases. It also offers the possibility of installment payments and deductions based on the level of recoverability of these debts.  

For irrecoverable or doubtful debts:  A 10% down payment on the consolidated amount, after deductions, with the remainder payable in up to 115 installments.  Up to a 100% deduction in interest, fines, and legal charges, capped at 65% of the total amount.   

For high or medium recoverability debts: A 30% down payment on the consolidated amount, payable in up to 5 installments. Possibility of using tax loss carryforwards from previous years, up to December 31, 2023, to offset up to 70% of the debt after the down payment, with the remainder payable in up to 36 installments. Alternatively, a 30% down payment of the debt can be made in up to 5 installments, with the remainder payable in up to 115 installments.  

Deadline for application  

October 31, 2024  

(as per RFB Ordinance No. 444/2024)  

Public notice  

Tax Settlement Adhesion Notice No. 1/2024  

Debts Registered as Overdue Tax Liabilities 

Description 

This notice provides for three types of renegotiation: 

1. Debt settlement by adhesion for the payment of overdue Federal tax liabilities, 

1. Debt settlement for small claims, and 

1. Debt settlement for litigation guaranteed by insurance or a letter of guarantee. 

Partial adhesion is prohibited, but combining more than one modality is allowed. 

Eligible debts and benefits 

Payment of overdue tax liabilities: Applies to registered debts that do not exceed BRL 45 million, including those in the enforcement stage or those that were part of a terminated installment plan. 

Benefits: A down payment of 6% of the consolidated debt can be made in up to 6 installments. The remainder is payable in up to 114 installments, with a deduction of up to 100% on interest, fines, and legal charges (capped at 65% of the total amount). For irrecoverable or doubtful debts, the remainder can be paid in up to 108 installments. 

Small claims: Aimed at debts that have been registered for more than a year and do not exceed 60 minimum wages. This option applies only to micro and small-sized companies, as well as sole micro-entrepreneurs (MEIs). 

Benefits: A down payment of 5% of the consolidated amount is required. The remainder can be paid in installments over 7 to 55 months, with a reduction of up to 50% on the total amount. 

Debts guaranteed by insurance or letter of guarantee: This applies to debts that are secured by performance bonds or a letter of guarantee. 

Benefits: A down payment of 30% to 50%, with the remainder payable in installments over up to 12 months, with no deductions. The guarantees must be maintained until the full amount is paid off. 

Deadline for application 

August 30, 2024 

Public notice 

Public Notice  No. 2/2024 

Investment Grants 

Description 

Allows companies to settle debts arising from the exclusion of the ICMS tax or financial incentives and benefits from the IRPJ and CSLL calculation bases when made in disagreement with the now-revoked Article 30 of Law No. 12,973/2014, which provided for the non-taxation of investment grants until December 2023. 

Eligible debts 

Debts arising from the undue exclusion of investment grants from the IRPJ/CSLL calculation base, along with related fines of any amount, that were registered as overdue tax liabilities by May 16, 2024, or were pending final judgment in a lawsuit, tax enforcement or administrative appeal by May 31, 2024. 

Benefits 

The consolidated debt can be paid with an 80% reduction if settled in up to 12 monthly installments. Alternatively, 5% of the debt can be paid in up to 5 monthly installments, with the remainder paid in up to 60 installments with a 50% reduction, or in up to 84 installments with a 35% reduction. 

Deadline for application 

September 30, 2024 

(as per PGFN/RFB Joint Ordinance No. 15/2024) 

Public notice 

Public Notice No. 4/2024