The Zero Litigation Program comes into effect from today (1st), aimed at assisting individuals and legal entities that have debts in administrative dispute with the Federal Revenue Service up to the value of R$50 million. Among the negotiation possibilities is a reduction of up to 100% in the value of interest, fines and legal charges for credits classified as irrecoverable or difficult to recover.
According to the IRS, the new renegotiation system has different modalities, depending on the risk level of the debt. In some cases, when renegotiating debts, a limit of up to 65% of the total debt value will be observed, with a deposit of 10% of the consolidated value of the debt, after discounts, paid in up to five installments, and the outstanding balance in up to 115 installments.
Debts owed by micro-enterprises, individuals or small businesses, may also be negotiated within the scope of Zero Litigation 2024. To do so, an entry of 5% of the consolidated value of the credits transacted in up to five installments is required and the remainder paid in 12 , 24, 36 or up to 55 months.
“The shorter the payment period, the greater the discount. For example: if the plan chosen is for 12 months, a 50% reduction will be applied, including the main amount of the credit. If the taxpayer chooses the payment method of up to 55 months, the reduction drops to 30%”, informed the Revenue.
The Revenue also informed that if credits arising from Tax Loss (PF) or Negative Calculation Base (BCN) are used in the renegotiations of cases considered irrecoverable or difficult to recover, the entry will be at least 10% of the outstanding balance, paid in up to five installments, and the remainder using these credits, calculated by December 31, 2023, limited to 70% of the debt after entry, and the residual balance divided into up to 36 installments.
In the case of credits classified as having a high or medium recovery perspective, a deposit of 30% of the consolidated value will be accepted, with payment in up to five installments, and the remainder of the outstanding balance using credits arising from Tax Loss (PF) or Base Negative Calculation Number (BCN) calculated until December 31, 2023, limited to 70% of the debt after entry. The residual balance can be divided into up to 36 installments. Without the use of PF/BCN, the entry will be 30% of the consolidated value of the debt, in up to five installments and the remainder in up to 115 installments.
Taxpayers with debts to the IRS and who want to join the program will find more information on the Zero Litigation page. (https://www.gov.br/receitafederal/pt-br/acesso-a-informacao/acoes-e-programas/programa-litigio-zero)
