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Special Tax Regularization Program (PERT) • MP 783/17

The Federal Government has recently launched the Special Tax Regularization Program (“PERT”), which grants incentives for taxpayers to pay their federal debts, irrespective of whether they are registered already. The taxpayer may opt for one of the several payment plans, each one comprising a different combination of benefits, such as the possibility to pay the debt in installments, the reductions of interests and fines, and the possibility to offset the tax debts with tax credits.

The PERT was created by Provisional Measure No 783, published on 31 May 2017 (“MP 783/17”). It replaced the so-called Tax Regularization Program (“PRT”), as the provisional measure that created the latter lost effectiveness on 1 June 2017 (Provisional Measure No 766, as of 4 January 2017). The PRT had already been abandoned by the Federal Government after National Congress had disfigured the original project with the inclusion of numerous benefits that would cause significant losses to the Public Treasury.

The PERT allows taxpayers and tax liable parties (individuals or legal entities) to pay federal debts, of tax or non-tax nature, due up to 30 April 2017, that are managed by either the Federal Revenue Service (“RFB”) or the Federal Attorney of National Treasury (“PGFN”).

It is noteworthy that debts subject to active or terminated previous installments programs, as well as debts under administrative or judicial claims (upon withdrawal from the litigation), and even those resulting from tax assessments occurred after the enactment of MP 783/17 may be included in PERT.

The several types of installment plans admitted in the PERT allow different combinations of benefits, among which:

  • reductions of up to 83.25% of interest on late payments and up to 46.25% of fines;
  • payment in up to 120, 150 or 180 monthly installments;
  • possibility to offset tax debt with credits resulting from tax losses or negative CSLL basis, as well as with other tax credits managed by RFB; and
  • possibility to offer real state property as payment in kind.

You may click [here] to check a table with an overview of the conditions and benefits according to each payment modality.

Taxpayers interested in joining PERT must submit the corresponding application no later than by 31 August 2017, and pay all the debt or the first installment until the same date.

Taxpayers may be excluded from PERT if they (i) default payment of three consecutive or six alternative installments, or (ii) fail to pay a quota, if the others are paid, or either (iii) do not regularly comply with their obligations with the FGTS or default in relation to other debts due as from 30 April 2017, in addition to other hypotheses.

If there are deposits in procedures (judicial or administrative) concerning debts included in the PERT, these shall firstly be converted into a definitive payment, and the reductions and other benefits shall only apply to the remaining balance.

Leal Cotrim is available to its clients to assist them in the analysis necessary to join PERT.

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July 07, 2017