On April 24, 2023, the São Paulo City Hall launched the municipal tax transaction program for debts enrolled in the Municipality of São Paulo’s active debt, as a measure to benefit the commerce and services sectors that were most impacted by the economic crisis due to the COVID-19 pandemic restrictions.
The tax credits that can be included in the transaction are those whose corrected principal value, as of April 2023, does not exceed R$ 510,000 and are related to:
IPTU (Urban Property Tax) for properties of use code 70 (cinema, theater, entertainment venue, club, or similar);
IPTU for properties of use code 80 (hotel, inn, or lodging);
IPTU for properties whose SQLs, as defined by the Municipal Department of Urbanism and Licensing, are within the Historical Center Sector of the Central Sector Urban Intervention Area;
ISS (Service Tax) and fines for non-compliance with accessory obligations under the ISS legislation, related to specific service codes expressly provided in Notice No. 01/23.
The transaction offers a 95% reduction in charges (late payment interest, fines, and, if the debt is not yet subject to legal action, attorney fees) for a lump-sum payment. For installment payments of up to 120 equal and successive monthly installments, an 80% reduction will be granted. In this case, the value of each installment must be adjusted by the basic interest rate, Selic, accumulated monthly, calculated up to the month following the date of adherence and up to the month prior to payment, plus an additional 1%, which will apply to the month in which the payment is made.
It will also be possible to include in the transaction amount any amounts deposited as judicial security for actions related to the debts being negotiated, whether for a lump-sum or installment payment. If there are multiple debts, all of them must be included in the negotiation. However, in the installment scenario, if the release of the deposit is delayed due to the judiciary, the additional charges will continue to be applied to each installment.
Taxpayers can join the tax transaction program through the website “fiqueemdia.prefeitura.sp.gov.br/tdm” until July 21, 2023. It is necessary to select all credits eligible for the transaction and submit all mandatory documents within 60 days from the date of acceptance of the transaction proposal.
It is worth noting that participating in the tax transaction program is an advantageous alternative for taxpayers, as it allows for the settlement of debts with significant discounts on charges, avoiding tax execution actions and asset seizures, and enabling the regularization of the fiscal situation with the Municipality of São Paulo.