Law No. 25,144/25, published on January 10 in the Official Gazette of the State of Minas Gerais, provides for the settlement of disputes related to the collection of credits from the State Treasury, of a tax and non-tax nature. The rule applies:

  • the active debt registered by the State Attorney General's Office (AGE/MG), regardless of the collection phase;
  • to the active debts registered of autarchies, foundations, public companies and other state entities whose registration, collection or representation is the responsibility of the EGM; and
  • tax foreclosures and anti-exceptional actions, main or incidental.

The transaction may be carried out in the following modalities:

  • Adhesion (tax credits): cases in which the debtor or adverse party must adhere to the terms and conditions established in a joint notice of the EGM and the State Department of Finance (SEF/MG);
  • Adhesion (non-tax credits): cases in which the debtor or the opposing party must adhere to the terms and conditions established in the EGM notice; and
  • Proposal: individual or joint initiative of the debtor or creditor, represented by the EGM.

The transaction modalities set forth above may include, separately or cumulatively:

  • The granting of discounts on fines, interest and other legal accruals, including fees, related to tax credits classified as irrecoverable or difficult to recover, according to specified criteria;
  • The granting of discounts on the principal amount, fine, interest and other legal accruals, including fees, related to non-tax credits classified as irrecoverable or difficult to recover, according to specified criteria;
  • The offer of special terms and forms of payment, including installments and moratorium, as well as the offering, acceptance, replacement or disposal of guarantees and constraints provided for by law;
  • The use of accumulated credits and ICMS reimbursement, own or acquired from third parties, duly approved by the competent authority, to offset the main ICMS tax debt, fine and interest; and
  • The use of liquid, certain and enforceable credits, own or acquired from third parties, established in the form of writs resulting from final and unappealable judicial decisions and no longer subject to a measure of defense or unconstitution.

In addition, it is important to note that the following are prohibited:

  • Transaction involving debts not registered as overdue debt;
  • Accumulation of any reductions offered in the transaction with any others previously applied to the debts in collection;
  • Reduction of the principal amount of the tax credit – considering the original amount;
  • Reduction of more than 65% of the total amount of tax or non-tax credits to be transacted, as well as the granting of a term for the discharge of credits of more than 120 months, except in the case of a transaction involving an individual, microenterprise or small business or in a transaction with irrecoverable credits or credits that are difficult to recover;
  • Transaction that has the reduction of the criminal fine and its charges, except for those that are still under judicial discussion without res judicata;
  • Transaction that grants a discount on fines, interest and other legal accruals for the persistent debtor of the payment of ICMS;
  • Transaction involving a debt fully guaranteed by deposit, surety bond or bank guarantee, when the anti-exceptional action or motion for a stay of execution has become final and unappealable in favor of the State Treasury;
  • Transaction involving the additional ICMS rate destined to the Fund for the Eradication of Misery (FEM);
  • Transaction that implies credit for the debtor of the debts transacted; and
  • Transaction involving debts regularly declared by the taxpayer opting for the Simples Nacional.

In addition to the above, Law 25,144/25 also deals with the transition by adhesion resulting from relevant and widespread legal controversy and the transaction by adhesion in small value credit. Such modalities have their own characteristics, as explained below.

  • TRANSITION BY ADHESION RESULTING FROM RELEVANT AND WIDESPREAD LEGAL CONTROVERSY

  • Applicable to tax or non-tax credits, in relation to debtors with disputes arising from relevant and widespread legal controversy.
  • The notice of the transaction will contain the requirements to be met and the reductions or concessions offered, as well as the terms and forms of payment admitted.
  • Reductions and concessions will be limited to a discount of 65% of the total amount of the credit, with a maximum repayment period of 120 months, except when it is a transaction involving an individual, microenterprise or small business.
  • The settlement notice may allow the possibility of discharge through the adjudication of assets, payment or compensation of court orders.
  • The execution of a new transaction related to the same credit will be prohibited, as well as the proposal of a transaction with prospective effect that results, directly or indirectly, in a special, differentiated or individual taxation regime.
  • TRANSACTION BY ADHESION IN SMALL CREDIT

Applicable to debts registered as overdue for more than two years on the date of publication of the notice. It may include, separately or cumulatively:

  • The granting of discounts on fines, interest and other legal accruals, subject to the maximum limit of 65% of the total amount of the credit;
  • The offer of special terms and forms of payment, including the moratorium, subject to the maximum discharge period of 120 months; and
  • The offering, substitution or disposal of guarantees and constraints.

Our tax team remains available to answer any questions on the subject.