According to Ordinance No. 208/2022, published by the Federal Revenue Service, debts that are still pending a decision at the administrative level may be transacted, that is, subject to negotiation with the Federal Revenue Service of Brazil for payment.
To reach an agreement to pay a debt with the Federal Revenue Service, the taxpayer must have debts exceeding ten million reais (individual transaction) or exceeding one million reais (simplified individual transaction).
Debtors whose debt amounts are less than one million reais may carry out a transaction by adhesion, that is, when the Federal Revenue Service publishes a notice. Therefore, these taxpayers must stay informed so they don’t miss any potential publications of tax transaction notices.
The Ordinance provides for the possibility for taxpayers to use tax losses and negative tax bases to reduce up to 70% of the remaining debt balance, after applying the discounts provided for in the legislation, in addition to the possibility of paying the principal, fines and interest through court orders and credit rights receivable.
The conditions for concluding the transaction include the withdrawal of any objection or appeal in the administrative sphere, as well as the waiver of legal claims for subsequent discussion. There is also the need to grant broad access to documents and information, as well as authorization to offset amounts related to refunds, reimbursements, or reimbursements recognized by the Federal Revenue Service.
