The Office of the Attorney-General of the National Treasury (PGFN), of the Ministry of the Economy, has reopened the Fiscal Recovery Program, allowing the renegotiation of debts, for all debts that come to be registered as the Union’s outstanding debt by August 31, 2021. The enrollment period runs from March 15 to September 30 through the Regularize portal.
PGFN Ordinance No. 2,381/2021, which sets out the rules, was published today (the 1st) in the Official Gazette of the Union.
The program provides for the extension of payment terms by up to 145 months and the granting of discounts of up to 70%. The measure covers individuals, legal entities, and micro and small enterprises, including those with debts related to the Rural Worker Assistance Fund (Funrural) and the Rural Land Property Tax (ITR).
Renegotiation of debts may reach up to R$ 90 billion
The government’s expectation with the reopening is to at least match the result obtained with the program in 2020, when debts of around R$ 81 billion were negotiated, in approximately 270 thousand agreements. According to the text, the objective is to allow the resumption of productive activity in view of the effects caused on the economy by the covid-19 pandemic.
Currently, the PGFN offers six different modalities of settlement agreements. To learn about them and run simulations, simply access the Regularize portal.
Under the Fiscal Recovery Program, taxpayers may negotiate the debts under the following modalities: extraordinary settlement, provided for in PGFN Ordinance No. 9,924/20; exceptional settlement (PGFN Ordinance No. 14,402/20); settlement in low-value tax litigation (PGFN Public Notice No. 16/20); and exceptional settlement for debts under the Simples Nacional (Brazil’s simplified tax regime) (PGFN Ordinance No. 18,731/20).
The exceptional settlement modalities also cover the debts of small rural producers and family farmers, provided for in PGFN Ordinance No. 21,561/20. According to the ministry, these rural debt settlements, carried out last year, generated about 1.8 thousand agreements, with a total negotiated value of more than R$ 1 billion.
Judicial reorganization
For companies undergoing judicial reorganization, the PGFN has also regulated the negotiation of debts registered as outstanding debt and of the Severance Indemnity Fund for Employees (FGTS), which allows, among other things, agreements to be made for the regularization of tax liabilities, involving extended terms and discounts. Ordinance No. 2,382/21, containing this measure, was also published this Monday in the Official Gazette of the Union.
The text regulates the changes made by Law 14,112/20, which reforms the Judicial Reorganization and Bankruptcy Law. Among the provisions of the ordinance, the Ministry of the Economy highlights the regulation of the tax settlement provided for in Art. 10-C of Law 10,522/02. These settlements are applicable to businesspersons or business companies that have had their judicial reorganization approved, with a maximum debt-reduction limit of up to 70% and a maximum installment term of between 120 and 145 months.
Source: Agência Brasil (Denise Griesinger)
← Back to blog