Brazil: Rio de Janeiro state – new Tax Amnesty Program

Latin America Alert

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On September, 21, 2018, the State of Rio de Janeiro published Supplementary Law n° 182, by means of which the state has granted reductions of amounts due as penalties and interest related to debts of ICMS (Brazilian VAT), motor vehicle taxes (IPVA) owed by individuals, and penalties applied by the State Court of Auditors, assessed or not, enrolled or not as overdue tax liability debts, whose expiration dates occurred up to June 30, 2018.

Note that the 30-day period in which to take advantage of the program will start on the day the regulation is published.

The reductions granted by the law are as follow:

Reductions applied to ICMS, IPVA and penalties applied by State Court of Auditors

Modality

Interest

Penalties

Single installment

50%

85%

Payment in 15 installments

35%

65%

Payment in 30 installments

20%

50%

Payment in 60 installments

15%

40%

 

Reductions applied exclusively to ICMS penalties whose infraction occurred up to March 31, 2018

Modality

Interest

Penalties

Single installment

50%

70%

Payment in 15 installments

35%

55%

Payment in 30 installments

20%

40%

Payment in 60 installments

15%

20%

 

The abovementioned reductions also apply to:

(i) the remaining balance under any prior installments programs, as long as any kind of reduction has been granted before

(ii) ICMS related to tax substitution method an

(iii) penalties applied due to noncompliance with ancillary tax obligations.

Taxpayers taking advantage of the Tax Amnesty Program must make irrevocable and non-retractable admission to the debts and withdraw all defenses (judicial or administrative) related to them.

For more information and details, please feel free to contact us.

 

Renato Lopes da Rocha is a partner in the Tax practice of Campos Mello Advogados, an independent law firm in Brazil.