The City of São Paulo has published the 2024 Incentive Installment Program (PPI).

Decree 63.341 (Official Gazette of 11/04/24) regulated the new PPI 2024, established by Law 18.095/24, which may include (i) debts arising from tax and non-tax credits, including those registered as outstanding debt (subject to legal action or to be subject to legal action), whose generating event occurred up to 12/31/2023, and (ii) tax debts remaining from ongoing installment plans.

Tax credits for fines for non-compliance with ancillary obligations may only be included if the assessment occurred up to 12/31/2023.

Debts relating to contractual obligations, violations of environmental legislation, the Simples Nacional (Simplified National Tax Regime), and those included in transactions entered into with the Municipal Attorney General’s Office may not be included.

The deadline to join the PPI (Program for Tax Regularization) begins on April 29, 2024 and ends on June 28, 2024, through a specific application that will be available here.

Tax debts included in the PPI may be:

• • Paid in a single installment, with a 95% reduction in late payment interest and a 95% reduction in penalties, and, when the debt is not subject to legal proceedings, a 75% reduction in attorney’s fees;

• • Payments can be made in up to 60 installments, with a 65% reduction in late payment interest and a 55% reduction in penalties, and, when the debt is not subject to legal proceedings, a 50% reduction in legal fees.

• • Payments can be made in 61 to 120 installments, with a 45% reduction in late payment interest and a 35% reduction in penalties, and, when the debt is not subject to legal proceedings, a 35% reduction in attorney fees.

Non-tax debts included in the PPI may be:

• • Paid in a single installment, with a 95% reduction in the amount of late payment charges on the principal debt and, when the debt is not subject to legal proceedings, a 75% reduction in attorney’s fees;

• • Payments can be made in up to 60 installments, with a 65% reduction in late payment charges on the principal debt and, when the debt is not subject to legal proceedings, a 75% reduction in legal fees.

• • Payments can be made in 61 to 120 installments, with a 45% reduction in the amount of late payment charges on the principal debt and, when the debt is not subject to legal proceedings, a 35% reduction in attorney’s fees.

Installments must respect the minimum value of R$50.00 (individuals) and R$300.00 (legal entities).

Formalizing the request to join the PPI 2024 implies recognition of the debts included therein, with the counterpart being the automatic withdrawal of challenges, defenses, appeals, and administrative requests that dispute the debt, as well as legal actions and objections to enforcement.

Our tax team is available to assist you with this matter.