The Federal Revenue Service has regulated the Special Tax Regularization Program (PERT), which allows for the negotiation, under special conditions, of any debts owed to the National Treasury, due up to April 30, 2017 – of individuals or legal entities. The Normative Instruction (RFB No. 1711/2017) was published yesterday (the 21st) in the Official Gazette of the Union.
The Federal Revenue Service emphasizes that, in addition to aiming at reducing the number of proceedings in tax disputes, the PERT has the objective of providing companies and citizens with special conditions for the negotiation of their debts. Under this program, the taxpayer may opt for one of the following modalities:
– Payment, in cash and in full, of at least 20% of the value of the consolidated debt, without reduction, in 5 successive monthly installments, due from August to December 2017, and the settlement of the remainder through the use of tax loss carryforward credits and negative calculation basis of the Social Contribution on Net Profit (CSLL) or with other own credits relating to the taxes administered by the Department of the Federal Revenue Service of Brazil.
– Payment of the consolidated debt in up to 120 successive monthly installments.
– Payment, in cash and in full, of at least 20% of the value of the consolidated debt, without reduction, in 5 successive monthly installments, due from August to December 2017, and the remainder:
- a) Settled in full in January 2018, in a single installment, with a 90% reduction of the default interest and a 50% reduction of the default penalties, whether ex officio or isolated.
- b) Paid in installments in up to 145 successive monthly installments, due as from January 2018, with an 80% reduction of the default interest and a 40% reduction of the default penalties, whether ex officio or isolated.
- c) Paid in installments in up to 175 successive monthly installments, due as from January 2018, with a 50% reduction of the default interest and a 25% reduction of the default penalties, whether ex officio or isolated, each installment being calculated on the basis of the amount corresponding to one percent of the gross revenue of the legal entity, referring to the month immediately preceding that of the payment, and may not be lower than 1/175 (one one-hundred-and-seventy-fifth) of the total consolidated debt.
Those who hold a total debt equal to or lower than R$ 15 million, upon opting for the third modality, are afforded the benefit of a reduction of the cash payment to, at a minimum, 7.5% of the value of the consolidated debt, without reductions, which shall be paid in 5 successive monthly installments, due from August to December 2017, and the possibility of using tax loss carryforward credits and negative calculation basis credits of the CSLL and other own credits relating to the taxes administered by the RFB.
Deadline – Adhesion to the PERT may be made from July 3 through August 31. The taxpayer who is already enrolled in other refinancing programs may, at their option, remain in those programs and adhere to the PERT, or else migrate the debts from the other programs to the PERT.
Normative Instruction RFB No. 1711 sets forth greater detail regarding the rules of the Program, and further information may be obtained by consulting the Federal Revenue Service’s webpage on the internet.
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