The Ordinance PGFN nº 14.402/2020, dated June 17th, 2020, rules on the new conditions for the adhesion to the new exceptional transaction program of the overdue federal liabilities, due to the effects of the pandemic caused by COVID-19.
The adhesion to the transaction will take place through the REGULARIZE portal, and the taxpayer must necessarily provide beforehand the following information, also via the portal:
- full company’s address, name, CPF and complete address of current partners, directors, managers, and officers;
- monthly gross revenue of the calendar years of 2019 and 2020, being, in the last case, up to the month immediately preceding the month in which the taxpayer provided the information necessary for the formulation, by the PGFN, of the adhesion transaction proposal;
- the number of employees (formally linked) on the date of the provision of the information necessary for the formulation, by PGFN, of the proposal of adhesion transaction and on the immediately preceding months, starting in January 2020;
- the number of monthly admissions and dismissals and suspended work contracts, based on Provisional Measure no. 936, of 2020, in the calendar year of 2020;
- the total value of the assets, rights, and obligations of the legal entity existing on the month before the accession.
The modalities of this transaction are:
- down payment corresponding to 4% (four percent) of the total amount of debts to be transacted, divided into up to 12 (twelve) equal and successive installments;
- payment of the remaining debt balance in up to 72 (seventy-two) months, with discounts up to 100% on the amounts of fines, interest and charges, and respecting the limit of up to 50% of the total amount of the debt, for legal entities in general;
- payment of the remaining debt balance in up to 133 (one hundred and thirty-three) months, with the possibility of discounts up to 100% on the amounts of fines, interest, and charges, respecting the limit of up to 70% of the total amount of the debt for individual taxpayers, individual entrepreneurs, micro-enterprises, small businesses, educational institutions, charity institutions, cooperatives and other civil society organizations covered by Law n. 13.019, of 2014.
The amount of each installment cannot be lower than R$ 100.00 (one hundred reais) when the transaction in 133 (one hundred and thirty-three) months is allowed, and R$ 500.00 (five hundred reais) in the other cases. Employees’ and employers’ social security contributions can only be paid in up to 48 (forty-eight) months.
The debts under litigation may also be subject to the transaction, provided that the debtor proves to have given up the related judicial lawsuits, defenses, or appeals, with a request for the extinction of the respective process with a resolution of its merit.
Overdue debts liabilities being paid in installments can also be included, provided that the taxpayer previously withdraws the installment plan.
The term for joining the exceptional transaction will be open between July 1st and December 31st, 2020.
The teams of Fraga, Bekierman & Cristiano Advogados are available to answer any questions about the legislation mentioned above and help with the procedures to adhesion.