Published in the Official Gazette of February 11, 2021, Ordinance PGFN No. 1,696 / 2021, establishing conditions for the negotiation of tax debts overdue in the period from March to December 2020, registered in the Union’s active debt and not paid for economic reasons caused by Covid- 19.

These debts, registered until 31.05.2021, may be negotiated:

a) from legal entities or equivalent to it;

b) Micro and small companies opting for Simples Nacional;

c) the Personal Income Tax, related to the 2020 financial year.

The analysis of the economic impacts on those to be negotiated and the payment capacity will follow the provisions of Ordinance PGFN No. 14.402 / 2020. The modalities foreseen are those of exceptional transaction and execution of Legal Procedural Business for individuals and companies.

The rules contained in Ordinances PGFN No. 14.402 / 2020 and No. 18.731 / 2020, apply to the negotiation modalities provided for in this Ordinance, in what is not contrary to it, especially in relation to the conditions and procedures for adhesion, required commitments and hypotheses and termination procedures.

The deadline for the start of debt negotiation will start on 03.01.2021, remaining open until 7.00 pm on 06.30.2021.

The installment refers to the maturity from 03/2020 to 12/2020, not to the calculation period.

(i) for Simples Nacional debts, the provision of article 9 of Ordinance PGFN 18.731 / 2020 applies. Payment of 4% (12 months) is required, with negotiation of the balance in up to 133 installments, with reductions reaching up to 70% of total debts (not being able to reduce the principal).

(ii) for Individuals, Individual Entrepreneurs, ME / EPP, Cooperatives, Santas Casas de Misericórdia and other Civil Society Organizations, the provision of article 9 of Ordinance PGFN 14.402 / 20 applies. Payment of 4% (12 months) is required, with negotiation of the balance in up to 133 installments, with reductions reaching up to 70% of total debts (not being able to reduce the principal).

(iii) for other Legal Entities, the provision of article 9 of Ordinance PGFN 14.402 / 20 applies. Payment of 4% (12 months) is required, with negotiation of the balance in up to 72 installments, with reductions reaching up to 50% of total debts (not being able to reduce the principal).

The terms and discounts will be offered to the debtor according to the possibility of defaulting the debts, and the% verified in the impact of the pandemic will be taken into account as a reducing factor in the payment capacity. (Ordinances PGFN 14.402 / 2020 and PGFN 18.731 / 20, arts 6 and 7).