Program for payment of municipal debts in installments (so-called PPI) – Municipality of São Paulo

In brief

On July 02, 2021, the Municipality of São Paulo published Decree No. 60,357/21, regulating the Special Program for taxpayers, set forth for the taxpayers to pay certain tax and non-tax debts regulated by the Municipality of São Paulo, with reductions on interest and penalties applied by the municipality authorities on tax triggering events that occurred up to December 30, 2020. As former amnesty programs from the Municipality of São Paulo, there is no discount on monetary correction.

More Details

The benefits apply to tax debts, regardless of whether they were assessed or registered in the Municipality list of debtors, including those already being discussed in a tax collection action.

The updated tax debt amount will be reduced as follows:

I. Lump sum payments: 75% over the penalties and 85% over the interest; or

II. Payment in up to 120 installments: 50% over the penalties and 60% over the interest. The amount of each installment will be increased by interest equivalent to the Selic rate accumulated monthly, calculated from the month subsequent to taxpayer joins the program, until the month prior to the payment, and 1% (one percent) in relation to the month in which the payment is being carried out.

The enrollment in the program results in the recognition of the debt by the taxpayer, who should waive any right of defense or appeal, and give up on those appeals already filed.

As in previous years, the enrollment will be performed using a specific application available at the Municipal Treasury website. We checked and the link is not working yet.

With the regulation, the deadline for enrollment in the program will start on July 12, 2021 and will extend until October 29, 2021. We are available to assist and provide any clarification that may be necessary.