The São Paulo Agreement, launched by the São Paulo State government, allows companies undergoing judicial or extrajudicial recovery, or bankruptcy, to negotiate ICMS debts. The program offers discounts of up to 100% on fines, interest, and attorney fees, and allows debts to be paid in up to 145 installments, with no down payment required. The goal is to facilitate the regularization of these companies, providing more advantageous conditions for settling their tax obligations.
One of the agreement’s main innovations is the possibility of settling up to 75% of the debt using court-ordered debts or accumulated ICMS credits, including those from third parties. This measure provides greater flexibility for companies, allowing them to use or acquire credits to settle their debts. However, there are important restrictions, such as the requirement for full payment of the principal amount of the debt and a limit of up to 70% for reducing the total amount.
The program is considered a valuable opportunity for insolvent companies, especially those facing difficulties in obtaining tax clearance certificates, which are essential for granting judicial recovery. The São Paulo government expects high participation, based on the success of previous calls for proposals.
Finally, the São Paulo Agreement gains relevance in light of the ongoing tax reform, which foresees the elimination of the ICMS (Tax on Goods and Services) by 2032, replacing it with the Tax on Goods and Services (IBS). Companies have until that date to use and offset their ICMS credits, and the agreement offers a strategic opportunity to regularize these credits before the implementation of the new tax system.
