"Pandemic Transaction”: PGFN establishes new deadlines to settle debits

The National Treasury General Attorney (Procuradoria-Geral da Fazenda Nacional - “PGFN”), through the Ordinance 1696, published on February 11, 2021, has stated a new way to negotiate debits called “Transação da Pandemia” (or Pandemic Transaction).

This measure establishes conditions for operations by adhesion to federal taxes overdue from March to December 2020 and unpaid due to the economic impacts from Covid-19 pandemic

Deadline for adhesion

This modality should be available for adhesion from March 1 to June 30, 2021 by 07:00 p.m..

Conditions

For a negotiation, the debit must be enrolled in the debits with the Union by May 31, 2021.

PGFN should also evaluate the taxpayer’s capacity to pay the debit, considering the economic and financial pandemic effects.

In the case of legal entities, the impact is considered to be the reduction of the sum of the 2020 monthly gross revenue (beginning on March and ending in the immediate month preceding that to the adhesion) in relation to the sum of the monthly gross revenue of the same period of 2019.