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

On May 27, 2021, the Municipality of Sao Paulo published Law No. 17,557/2021 providing a Special Program for taxpayers to pay certain tax and non-tax debts regulated by the Municipality of Sao 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 Sao Paulo, there is no discount on monetary correction.

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.

Taxpayers may enroll in the program until August 31, 2021.

We expect the publication of the regulation in the next days.