Through Decree 63,865/24, published in the Official Gazette of the City on November 4, the City of São Paulo reopened the deadline for entry into the 2024 Incentivized Installment Program (PPI) – initially instituted by Law 18,095/24 and regulated by Decree 63,341/24. The new period for formalizing the application for entry into the PPI began on November 5 and will extend until January 31, 2025.

The PPI is intended for individuals and legal entities and provides for the possibility of settling tax or non-tax debts, whether constituted or not. It also includes debts registered as overdue debt, filed or to be filed, as well as remaining balances of installments in progress, related to taxable events that occurred up to December 31, 2023. Regarding fines for non-compliance with accessory obligations, debts can only be included in the PPI if they have been posted by December 31, 2023.

Debts may be settled with the possibility of reducing interest and fines in up to 120 equal and successive monthly installments, according to the following conditions:

Tax debts

  • Payment in a single installment: reduction of 95% of the amount of interest on arrears, 95% of the fine and, when the debt is not filed, of 75% of the attorney's fees;
  • Payment in up to 60 installments: reduction of 65% of the amount of default interest, 55% of the fine and, when the debt is not filed, 50% of the attorney's fees; and
  • Payment in 61 to 120 installments: reduction of 45% of the amount of interest on arrears, 35% of the fine and, when the debt is not filed, of 35% of the attorney's fees.

Debts of a non-tax nature

  • Payment in a single installment: reduction of 95% of the amount of late payment charges levied on the principal debt and, when the debt is not filed, of 75% of the attorney's fees;
  • Payment in up to 60 installments: reduction of 65% of the updated value of the late payment charges levied on the principal debt and, when the debt is not filed, of 50% of the attorney's fees; and
  • Payment in 61 to 120 installments: reduction of 45% of the amount of late payment charges on the principal debt and, when the debt is not filed, of 35% of the attorney's fees.

If there are judicial deposits made as a guarantee of the court, they can only be withdrawn to pay the debt. The eventual remaining balance should remain in the PPI. At the time, the outstanding balance will be deducted at the time of withdrawal of judicial deposits by the Attorney General's Office of the Municipality.

Adherence to the PPI is prohibited for debts related to:

  • obligations of a contractual nature;
  • violations of environmental legislation;
  • Special Unified Regime for the Collection of Taxes and Contributions – Simples Nacional, which is dealt with by Federal Complementary Law 123/06; and
  • amounts included in a transaction entered into with the Attorney General's Office of the Municipality.

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