National Treasury Attorney-General's Office and Federal Revenue Service regulate debt settlement

On August 1, the National Treasury Attorney-General’s Office (PGFN) published PGFN Ordinance No 6,757/2022, which regulates the terms and conditions for settling debts with the Federal Government and the Severance Indemnity Fund (FGTS), while also setting forth the criteria for assessing debt recovery rates.

Later still, August 12 saw the publication of RFB Ordinance 208/2022 , which governs the settlement of tax credits under the administration of the Federal Revenue Service.

The criteria established by both authorities are quite similar. Among other things, both have forbidden settlements that:

• reduce the total credits under negotiation by more than 65%;​
• use credits from tax losses and negative calculation basis of the Social Contribution (CSLL) greater than 70% of the remaining amount to be settled; and
• set a settlement period longer than 120 months.​



Some persons, such as individuals, self-employed micro entrepreneurs (MEIs) and small business corporations, are entitled to a maximum reduction of 70%, with a settlement period of up to 145 months.

Requests and offers for debt settlement with the PGFN and the Federal Revenue Service must be made through the Regularize and e-CAC portals, respectively. In any case, negotiations will cover all eligible debts, with no possibility of partial settlement by debtors.

Most of the new rules are already in force. However, the PGFN rules on simplified negotiations and those that set the requirements for accepting settlement offers and assessing debt recovery will take effect as of November 1 of this year. As for the settlement of debts with the Federal Service, the rules for simplified negotiations will only come into effect as of January 1, 2023.