On September 25, 2024, the Government of the State of São Paulo launched the second phase of the “Paulista Agreement” under the “SP in the Right Direction” program. This initiative aims to make it easier for taxpayers to regularize debts related to the IPVA (Vehicle Property Tax), as well as outstanding debts owed to the State Court of Justice (TJ-SP) and the State Court of Accounts (TCE-SP).
This new phase, regulated by PGE/Transaction Notice No. 02/2024, follows the terms of State Law No. 17.843/2023 and includes debts of up to R$ 42,432 (1,200 UFESPs) as long as they have been in active debt for over two years. The debts must not be fully secured by judicial deposit, surety insurance, or bank guarantee, and cannot be subject to final judicial decisions preventing their collection.
To join the program, taxpayers must access the São Paulo State’s active debt transaction portal at: www.dividaativa.pge.sp.gov.br/transacao. The deadline to join is December 20, 2024.
Taxpayers who join the program can receive up to a 100% reduction on fines, interest, and legal fees, provided that the total discount does not exceed 50% of the debt amount. Payment can be made in a single installment or in up to 60 monthly payments, giving taxpayers flexibility. However, by joining the agreement, the taxpayer must waive any administrative or judicial discussions regarding the debt included in the transaction, acknowledging it as valid.
After the first installment payment, any protest can be removed upon payment of notary fees; however, the release of vehicle registration linked to the debt will only occur once the debt is fully settled.
This is an excellent opportunity for taxpayers to regularize their debts with the State of São Paulo, taking advantage of special payment conditions and significant reductions in charges and fines.