The Municipality of Rio de Janeiro has approved some measures to reduce the effects of the COVID-19 pandemic and, at the same time, stimulate the municipal tax collection.
The measures are provided in the Law No. 6,740, of May 8, 2020, regulated by Decrees Nos. 47,419, 47,421 and 47,422, all published in the Official Gazette on May 11, 2020.
We highlight, below, the main points:
I – Urban and Territorial Property Tax (IPTU) and Household Garbage Collection Fee (TCL), related to the fiscal year 2020:
(a) 20% partial exemption and removal of late payment charges for taxpayers who fully pay the taxes, including overdue and due installments until June 5, 2020. The payment form must be requested via email to be released on the website of the Treasury Municipal Office (SMF), from May 25 to May 29, or through the Carioca Digital Portal, from May 25 to June 4; and
(b) the possibility of paying the overdue or maturing installments, which are open in July 2020, in up to 5 (five) installments with a minimum value of R$ 50.00. The maturity will be on the last business day of August to December 2020, without charge for late payment. The payment form must be requested via email to be posted on the SMF website until 08.21.2020, or by the Carioca Digital Portal until 08.30.2020.
II – Concerning to the hotel sector, including hostels, it is possible to pay IPTU debts, related to the properties used in the activity, in case of non-fulfilling of the conditions for the 40% reduction (article 3 of Law No. 3,895/2005), with the following benefits:
(a) 40% reduction in the amount of tax and 80% reduction in late payment charges, in the case of a single, full payment made until the last business day of August 2020; or
(b) a 40% reduction in the amount of tax and a 60% reduction in late payment charges, in the case of payment in installments within 12 months, with the first installment due on the last business day of August 2020.
The payment forms for debits not registered as enforceable must be requested via email to be disclosed on the SMF website or through the Carioca Digital Portal until August 21. For payment of debts registered as enforceable tax, the taxpayer must submit an administrative request for adhesion, in a form to be made available on the website of the Municipal Attorney General’s Office (PGM) and filed at one of the PGM service stations.
The interested taxpayer must waive any challenge or appeal relating to the matter, administrative or judicial, as well as waive the right to re-submit it.
About debts not included as enforceable debt, the taxpayer may choose to convert any existing administrative deposits into income.
III – Reopening of the Concilia Rio Program, for 90 days, from 06.01.2020, covering debts of Tax on Services of Any Nature (ISS), IPTU, TCL and Inter-Vivos Property Transfer Tax (ITBI), referring to taxable events occurring up to 12.31.2019, observing the following reductions:
(a) in the case of immediate payment, reduction of 10% of the amount of the outstanding balance of the principal of the tax monetarily updated until May 11, 2020, and reduction of 80% of the late payment charges and ex-officio penalties on the updated principal balance of the reduced tax;
(b) in the case of payment in up to 12 installments, a reduction of 10% in the amount of the outstanding balance of the principal of the tax monetarily updated until May 11, 2020, and a reduction of 60% in the amount of late payment charges and ex-officio penalties on the principal balance of the updated and already reduced tax;
(c) in the case of installments between 13 and 24 times, a 40% reduction in late payment charges and ex-officio penalties; and
(d) in the case of installments between 25 and 48 times, a 25% reduction in late payment charges and ex-officio penalties.
For ITBI debts not registered as enforceable debt, the benefit will only be accepted in the form of the letter “(a)”, above.
The taxpayer who adheres to the benefits of the Concilia Rio Program must, in the same act, pay or set the installment of the attorney’s fees due as a result of filing a tax execution or protesting the enforceable debt certificate. These attorney’s fees will be reduced in the proportion of the reduction in value that is made for the principal debt. Also, the taxpayer must pay the court fees and judiciary tax due to the Court of Justice, promptly or in installments, according to the form of adhesion to the Program.
About debts not registered as enforceable debt, adhesion must be requested through a specific form to be disclosed on the SMF website. Regarding the debts registered as enforceable debt, the application for adhesion must occur through a form to be made available on the Municipal Office of the General Prosecutor (PGM) website.
Adherence to the Concilia Rio Program requires an irrevocable and irreversible confession of debts, as well as the waiver of any ongoing administrative challenge or appeal, related to the matter, in addition to the disregard of the right to re-discuss the debt, administratively or judicially.
The teams of Fraga, Bekierman & Cristiano Advogados are available to answer any questions about the legislation mentioned above.