São Paulo: Special Installment of ICMS Debts

The Decree 64,564 of 2019 was published on Nov-06-2019, which opens the Special Installment Program (PEP) of the ICMS of the State of São Paulo, allowing taxpayers who have debts related to taxable events occurring by May-31-2019, including those that are already being challenged in court, to pay them in a single installment or to pay them in up to 60 installments, reducing interest and fine.

ICMS-SP Special Installment Program (PEP) allows taxpayers to pay off debts in a single installment or to pay them in up to 60 installments.

The reduction of interest and fine will follow the proportion below:

i) Cash payment (single installment): 75% reduction of the updated amount of the punitive penalties and late payment and 60% of the interest on the tax and the penalty;

ii) Payment in up to 60 monthly installments: 50% reduction of the updated amount of the punitive penalties and late payment and 40% of the interest on the tax and the penalty.

• In up to 12 installments, financial increases of 0.64% per month will apply;

• From 13 to 30 installments, financial increases of 0.80% per month; or

• From 31 to 60 installments, financial increases of 1% per month.

For debts required by means of an Infraction Notice and Imposition of Penalty (Auto de Infração e Imposição de Multa - “AIIM”), not registered in active debt, in addition to the reductions aforementioned, the following discounts are applied to the updated amount of the punitive fine:

• 70%, in the case of payment in a single installment, upon joining to the program within 15 days from the date of AIIM notification;

• 60%, in case of payment in a single installment, upon adhesion to the program within 16 to 30 days, the date of AIIM notification;

• 25% in other cases of ICMS required through AIIM.

Note: Tax debts from tax substitution (ICMS-ST) may be paid in up to 6 consecutive monthly installments, with financial additions of 0.64% per month.

The joining to PEP can be done from November 07 to Dec-15-2019, through the electronic address: www.pepdoicms.sp.gov.br. The joining procedure foresees the selection of the debts to be added to the program and the issuance of the State Payment Slip (GARE-ICMS) corresponding to the first installment or to the single installment, whose maturity will be:

• On Nov-25-2019, for joining between November 07 and 15, 2019;

• on 12/12/2019, for joining between November 16 and 30, 2019;

• on 12/20/2019, for joining between November 01 and 15, 2019.

See the full Decree 64.564/2019 here for more information about the program.