Value-added Tax -ICMS- Amnesty Program
The program provides the partial amnesty of penalties and consists on the possibility of settling debts.
The Government of Sao Paulo started on Thursday, July 20, two installment programs for taxpayers to regularize debts of ICMS (Value-Added Tax on Sales and Services), ITCMD (death transfer and donation tax), IPVA (Vehicle Tax) and administrative fees.
ICMS Special Installment Program (“PEP”) provide the partial amnesty of penalties (including fine and interest) and consists on the possibility of settling tax debts according to special conditions.
The following reductions were established: (i) prompt payment of debt value with a 60% reduction in the amount of interest and 75% of the fines, or (ii) payment by instalments in up to 60 months with reduction of 40% in the amount of interest and 50% of the fines.
Debt Settlement Program (“PPD”) has the same conditions and allow the inclusion of debts of IPVA, ITCMD and administrative fees. The percentages of amnesty are the same and the payment by instalments in up to 18 months.
It is important to emphasize that accession to the program results in irrevocable and irreversible admission of the tax debt, as well as express waiver of any defense or administrative or judicial appeal.
The requirements for using ICMS accrued credits and amounts of ICMS-ST to be reimbursed will be later regulated by the Treasury Office.