The Attorney General’s Office of the State of São Paulo (PGE-SP) published, on Wednesday, February 7th, the first notice of the Paulista Agreement, accompanied by the regulation of the program. This step represents a substantial effort to facilitate the fiscal regularization of São Paulo taxpayers and, at the same time, increase state revenue.
The Paulista Agreement, a result of State Law 17.843/2023, opens a new front for the negotiation of tax debts, specifically aimed at those related to the Tax on Circulation of Goods and Services (ICMS) that have been enrolled in active debt.
The criteria for participation in the program are comprehensive, allowing taxpayers to select debts under their responsibility for inclusion in the transaction. The PGE-SP offers significant incentives, such as the elimination of 100% of late interest and a reduction of 50% of the fines for payments of ICMS debts enrolled in active debt. Additionally, the program allows for the debt to be paid in up to 120 installments, with correction by the Selic rate, provided that an initial payment of 5% is made.
A relevant innovation is the permission for taxpayers to use legal injunctions, accumulated ICMS credits, and agricultural producer credits to offset up to 75% of the total amount due. However, some restrictions apply, such as the exclusion of debts guaranteed by deposit, insurance guarantee, or bank guarantee, as well as those with a definitive judicial decision against the taxpayer or that have been the object of transaction in the last two years. Taxpayers classified as “systematic defaulters” also find specific limitations in accessing the proposed discounts.
The initiative of the Attorney General’s Office of the State of São Paulo in publishing a new notice for the Paulista Agreement represents an important milestone for the fiscal regularization of taxpayers and the optimization of state revenue. With incentives such as the elimination of interest and reduction of fines, in addition to flexible installment options and the use of various credits to offset debts, the program aims to facilitate the settlement of tax debts, specifically ICMS. Despite some restrictions, this measure paves the way for a more efficient and fair fiscal management, benefiting both the state and taxpayers.