Resolução PGE/SP n.º 06/2024 e Edital PGE/TR n.º 01/2024: Estado de São Paulo regulamenta a transação tributária e lança o primeiro edital

On February 7, 2024, the State of São Paulo published Resolution PGE/SP No. 06/2024, which regulates the transaction of tax or non-tax debts incurred as overdue liability with the state. Among other relevant provisions, the resolution:

(i) defines the parameters for the calculation of the recoverability degree of the debts that shall be classified as either (a) recoverable; (b) likely unrecoverable; and (c) unrecoverable;

(ii) in case of unrecoverable debts, authorizes the concession of discounts up to 75% on interest, penalties, and other increases; and, in case of likely unrecoverable debts, authorizes the concession of discounts up to 60% on interest, penalties and other increases, as long as the maximum limit of 65% discount over the total amount of the debt is observed in either case;

(iii) regulates the use of accumulated Tax over Merchandise and Services Circulation (“ICMS”) credits and credits submitted for reimbursement, as well as government notices of payment (the so-called “precatórios”) for paying the debts under the transaction; and

(iv) establishes that taxpayers (a) with overdue liability debts of over BRL10 million shall propose or receive a proposal of individual transaction; and (b) with overdue liability debts between BRL 1 million and BRL ten million shall propose, or receive a proposal of, simplified individual transaction.

On the same date, Notice PGE/Transaction No. 01/2024 was announced, related to high-level litigation, allowing the transaction, by adhesion, of ICMS debts increased by the interest rates in excess of the SELIC rate foreseen in Section 96, §1º, item 2, of Law No. 6,374/1989, amended by Laws No. 13,918/2009 and 16,497/2017.

The term for the adhesion started on February 7, 2024 and ends on April 29, 2024.

The Notice grants a 100% discount on interest; and 50% discount on the remaining balance, barring any discount of the principal amount related to the taxes due. It is possible to apply any accumulated ICMS credits or government notice of payment (“precatórios”), as well as administrative or judicial deposits.

Finally, it is worth mentioning that—in case the debt to be included in the Notice is under judicial review—the adhesion will automatically be extended to all debts enrolled as overdue liability object of the same Tax Foreclosure.