Rio de Janeiro City create program called “Resolve Rio”
On May 4th, 2021, the General Attorney Office of the Municipality of Rio de Janeiro enacted the Resolution No. 1.052/2021, introducing a new Amnesty Program (the “Resolve Rio”). The “Resolve” allows taxpayers to settle their debts with the Rio de Janeiro Municipality with reductions of interest, punitive fines and late payment fees up to 60%.
As stated in the Program, the Municipality of Rio de Janeiro shall give priority to the settlement of debts under the follow circumstances:
(i) remote chances of being enforced vis-à-vis the evidence of the specific case files or given settled case law;
(ii) remote chances that an unfavorable decision against the Municipality be overruled, especially if grounded on technical evidences;
(iii) if its settlement was required to guarantee to taxpayers the right of equal treatment;
(iv) in case of the taxpayer’s bankruptcy, a judicial recovery or liquidation; and
(v) if the specific facts and circumstances justify the debt’s review and settlement.
Besides the situations listed above, taxpayers may settle other municipal tax debts under the Program, provided that it submits an application, duly grounded, justifying the settlement benefit from a Municipal perspective.
The Resolve Rio allows taxpayers to enjoy:
- up to 60% reduction of the interest, punitive fine and/or late payment fees, if the debt is settled in cash and on a lump sum;
- up to 40% reduction of the interest, punitive fine and/or late payment fees, if the debt is settled ininstallments (up to thirty-six consecutive installments).
To foster adherence to the Program, the “Resolve Rio” Regulation guarantees that the negotiations carried out within the context of the Program will remain confidential and would not be used by the Municipality on future discussions.
The Resolve Rio entered into full force and effect on May 4th, 2021 and will be available for 90 days (i.e., August 2nd, 2021).
Should any further information is required, please do not hesitate to contact us.
