On May 26, the Mayor of São Paulo sanctioned Law 17,557/21, which offers several tax benefits in an attempt to ease residents’ concerns about outstanding debts with the Municipality.
Among several new measures, the ones that stand out the most are:
- The launch of the Incentivized Debt Installment Program (PPI). As in previous editions, the program brings reductions of fines and interest on debts with São Paulo City Hall, offering the opportunity for individuals or legal entities to settle their tax and non-tax debts and thus regularize their situation before the Municipality;
- The possibility of reopening the Debt Regularization Program (PRD). Created in 2015, the PRD benefited legal entities that were disqualified from the special regime for the collection of the Service Tax (ISS) of Single-Profession Companies (SUP). The debts to be considered for inclusion in the PRD installment plan will be solely those relating to the period in which the taxpayer was improperly classified as an SUP. There will be no remission (forgiveness) of existing debts, but rather discounts on fines and interest, as follows:
- Reduction of 100% (one hundred percent) of the amount of default interest and 100% (one hundred percent) of the fine, in the case of payment in a single installment.
- Reduction of 80% (eighty percent) of the amount of default interest and 80% (eighty percent) of the fine, in the case of installment payment.
- The amnesty of interest and fines on the Urban Property Tax (IPTU) (does not include monetary correction), relating to 2021 installments. If you were unable to pay the first installments of the 2021 IPTU, due by April 30, do not fail to take advantage of this important opportunity to pay the overdue installments by November 30, 2021. Save money with the forgiveness of fines and interest, and preserve your tax compliance, avoiding problems and inconveniences such as protests and judicial enforcement proceedings.
But please note: still under the terms of the law, the installments that remain unpaid after November 30, 2021 will have their amnesty canceled, that is, all fines and all interest will be charged normally again, as if the amnesty had never taken place.
Check out the main rules of the PPI
What is the PPI?
It is the Incentivized Installment Program that offers individuals or legal entities the opportunity to settle outstanding tax and non-tax debts, in order to regularize their situation before the Municipality of São Paulo. As in previous editions, the PPI 2021 brings as an advantage to the taxpayer, in addition to the possibility of installment payment of debts, the reduction of fines and interest.
How to know the deadline for joining?
According to Decree No. 60,357/2021, the deadline for joining is 90 days from the launch of the PPI, that is, from 07/12 to 10/29/2021. Follow the publications on the website of this Municipal Department of Finance, where the service channels available will be announced.
Which service channels will be made available for the PPI/2021?
The simulation and the membership may be carried out exclusively via the internet, in a specific, easy-to-understand and very secure program.
Who can join the PPI 2021?
Individuals or legal entities with tax and non-tax debts incurred up to December 31, 2020.
Which debts may be included in the PPI 2021?
– Tax debts, such as ISS, IPTU, TFE, TFA, TRSS and ITBI.
– Non-tax debts, such as zoning fines, public price, etc.
– Balances of debts from installment plans in progress, except for debts included in a PPI still in progress.
Important: Debts relating to Simples Nacional (Brazil’s simplified tax regime), contractual fines or debts relating to environmental legislation may not be included.
Source: Prefeitura de São Paulo
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