On October 3, the state law no. 17,784/2023 was sanctioned, simplifying and encouraging the settlement of ICMS (Tax on Circulation of Goods and Services) debts in São Paulo. This project, proposed by the São Paulo State Treasury Department, offers longer deadlines and significant discounts for companies with outstanding debts.
Key Points of Law No. 17,784:
• Progressive Discounts: Depending on how quickly the debt is settled, discounts can reach up to 70% for lump-sum payments made within 30 days. Previously, this deadline was only 15 days. The law also provides for regressive discounts that can reach 30% until registration as active debt.
• Resolve Now Program: The initiative aims to promote tax self-regulation, reducing the number of administrative processes and litigation. Currently, there are about 5,800 fiscal audits in progress, representing a total of R$ 117.5 billion.
• Payment with ICMS Credits: Companies can now choose to pay their debts using accumulated ICMS credits and amounts from tax substitution reimbursement.
• Installment Conditions: The new legislation introduces larger discounts for installment payments. The maximum discount of 55% is now valid for installments up to 36 months, as opposed to the previous 12-month term.
• Attention: In cases of default, the original fines are quickly reestablished and forwarded for registration as active debt. Additionally, the new law brings the possibility of applying larger fines in certain cases.
In the São Paulo State Legislative Assembly (ALESP), the proposal was approved with 56 votes in favor and 14 against. Some lawmakers expressed concern about the lack of a detailed study on the financial impact. However, those who supported the project see it as an opportunity for deregulation and greater efficiency in the tax sector.
Secretary Samuel Kinoshita emphasized the executive branch’s commitment to creating a more favorable business environment for the people of São Paulo and highlighted that this measure not only brings financial benefits to the State but also positions São Paulo as a leader in the tax sector, as it is the first state in the federation to implement a series of opportunities for companies to settle their fiscal debts.