State of Rio de Janeiro grants reduction of penalties and default interest

The State Complementary Law 182, published in the Official Gazette of the State of Rio de Janeiro, on Sep-21-2018, deals with the installment payment of ICMS debts, penalties from the State Court of Accounts (TCE), and individuals’ IPVA debts, with due by Jun-30-2018, whether or not they are registered, whether or not in active debt, including judged, as long as the debit value is collected in cash.

Discounts

Consolidated debt can be paid in:

a. a single installment, decreasing 85% in penalties and 50% in default interest;

b. up to 15 monthly and successive installments, decreasing 65% in penalties and 35% in default interest;

c. up to 30 monthly and the following installments, decreasing 50% in penalties and 20% in default interesand;

d. up to 60 monthly and successive installments, decreasing 40% in penalties and 15% in default interest.

Debits exclusively related to the requirement of ICMS penalties, whether or not in active debt, may be included if the infraction occurred until March 31 of this year, as follows:

a. In a single installment, decreasing 70% in penalties and 50% in default interest;

b. In up to 15 monthly and successive installments, decreasing 55% in penalties and 35% in default interest;

c. In up to 30 monthly and successive installments, decreasing 40% in penalties and 20% in default interest; and

d. In up to 60 monthly and successive installments, decreasing 20% in penalties and 15% in default interest.

Note: the remaining balance of the consolidated debts of previous installments, the ICMS related to the tax substitution, and the penalties from non-compliance with accessory obligations are also included in the above system.

Cancellation of installments

The immediate cancellation of the installment is foreseen in the cases of:

a. Non-payment of three (3) consecutive installments;

b. Unpaid installment or installment balance for a period greater than ninety (90) days, even though the others are settled; and

c. Default or irregularity of any other principal or accessory obligations overdue for more than sixty (60) days.

It is important to emphasize that the cancellation of the installment implies in immediate payment of the complete confessed and unpaid debit and loss of the discounts set forth in this Law. Thus, this leads to the reestablishment of the legal increases, for the unpaid amount, according to the applicable legislation.

NOTE: The mentioned law also grants remission of ICMS tax credits under the following conditions:

a. Required by means of an infraction notice or release note drawn up until Mar-31-2018;

b. Remaining balances of ICMS installments, constituted until Mar-31-2018;

c. Unregistered values in active debt;

d. With values lower than 450 UFIR-RJ, equivalent to BRL 1,482.26, considering the amount of said tax updated.

It is also noteworthy that, for full compliance with this Law, it is still necessary wait for the necessary regulatory acts that should be published by the Executive Branch.