Rio de Janeiro: Installment of tax debts for companies in judicial reorganization

The Law 8502/2019 was published on Sep-02-2019in the Official Gazette of the State of Rio de Janeiro allows the installment of tax debts for business companies, individual entrepreneurs and individual limited liability companies that are in judicial recovery.

Under the terms of this standard, any individual entrepreneur, individual limited liability company or entrepreneurial company that, under the current legislation, has obtained the approval of judicial reorganization is considered a debtor.

The installment payment may be requested by the taxpayer concerned, at any time, after the order granting the request processing for judicial recovery and covers debts arising from events that occurred by the date of distribution of the request for judicial recovery, whether or not registered, or registered or not in active debt.

As a general rule, the debt may be paid at the discretion of the debtor in:

• a single installment, reduced in 90% from penalty and 80% from interest;
• up to 24 months, reduced in 80% from penalty and 60% from interest;
• up to 48 months, reduced in 60% from penalty and 40% from interest;
• up to 72 months, reduced in 40% from penalty and 30% from interest;
• up to 96 months, reduced in 20% from penalty and 10% from interest; or
• up to 120 months with no discount or rebate.

Debtors who develop, or may develop, social projects after filing the judicial recovery may pay debts in:

• single installment, reduced in 90% from penalty and 80% from interest;
• up to 24 months reduced in 83% from penalty and 63% from interest;
• up to 48 months reduced in 63% from penalty and 48% from interest;
• up to 72 months reduced in 43% from penalty and 33% from interest;
• up to 96 months reduced in 23% penalty and 18% from interest;
• up to 120 months with no discount or rebate.

The possibility of a special installment of great social relevance is also foreseen to the taxpayers, when the payment can be up to 180 times, with no debt reduction.

The Law shall be effective 120 days from the date of its publication, that is, as of Jan-01-2020, also depends on the issuance of new legal acts, for the purposes of joining and operationalization of such benefits.