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Brazil Provides Better Terms for Tax Debt Settlement — Orbitax Tax News & Alerts

Brazil has published Law No. 14.375 of 21 June 2022, which amends past laws in relation to the settlement of tax debts. This includes:

  • An increase in the maximum discount on the amounts of fines, interest, and other charges from up to 50% of the total debt to up to 65%;
  • An increase in the allowed number of monthly installments from 84 to 120;
  • Rules allowing for the use of credits from corporate income tax (IRPJ) losses and/or a negative social contribution on profits (CSLL) calculation base to pay off tax debts;
  • Rules allowing for the settlement of tax debts that are in administrative litigation; and
  • Rules providing that benefits granted under previous installment programs will be maintained, with the settlement of the remaining tax debt balance allowed to be negotiated under the amended settlement rules.

Law No. 14.375 entered into force on 23 June 2022.