Brazil: new Refis tax debt installment program established in the state of Rio de Janeiro

On October 27, 2025, the state of Rio de Janeiro published Supplementary Law No. 225/2025 in its official gazette to establish a new Tax and Non-Tax Debt Installment Payment Program known as PEP-RJ.

The approved law grants discounts of up to 95% on fines and interest for settling outstanding tax liabilities – including those arising from non-compliance with the State Fiscal Balance Fund (FEEF) and the Temporary Budget Fund (FOT). Provided such liabilities arise from taxable events occurring on or before February 28, 2025, they do not need to have been assessed or enrolled in the state’s active debt register.

Program discounts

Depending on the payment method, the discounts range from 30% to 95% on fines and interest,  as follows:

• A 95% discount for lump-sum payments;
• A 90% discount for payments in up to 10 installments;
• A 60% discount for payments in up to 24 installments;
• A 30% discount for payments in up to 60 installments; and
• The possibility of payments in up to 90 installments without discounts.

After discounts have been applied, the monthly installments can be no less than 450 fiscal units (UFIR-RJ), or approximately BRL 2,138.

Liabilities limited to a fine will be reduced by 50%, with late-payment fees reduced according to the percentages set out above.

For debts already enrolled in the active debt register, the treatment applicable to attorneys’ fees upon settlement has yet to be defined.

Set-off settlements for real court-ordered debts (precatórios)

Debts enrolled in the active debt register may be settled via set-off against court-ordered debts (precatórios), whether held by the taxpayer or acquired from third parties. There is a 70% discount applicable to the amounts corresponding to fines and interest (subject to limits of 75% of the total debt for ICMS, and 50% for IPVA).

Set-off requests must be supported by a certificate issued by the competent court attesting to the holder’s title and the enforceability of the precatório credit, as well as the updated amount of the credit.

The remaining amount (25% for ICMS and 50% for IPVA) must be paid in cash within five business days of being notified of the set-off request’s approval. If the precatório is insufficient to reach the maximum set-off limits (75% for ICMS or 50% for IPVA), the remaining balance must also be paid in cash within the same timeframe.

Failure to make payment within the deadline renders the set-off approval null and void.

Companies subject to judicial reorganization or declared bankrupt

The program also provides special conditions for companies subject to judicial reorganization or companies declared bankrupt, allowing installments in up to 180 payments for debts arising from taxable events that occurred up to the law’s publication date. Discounts on fines and interest range from 95% to 65%, again depending on the number of installments. Alternatively, taxpayers may opt for installments tied to gross revenue, ranging from 2% to 5.5%, depending on the selected term.

Deadlines and conditions for joining the program

Enrollment in the program occurs once the first installment or lump sum has been paid. Once Supplementary Law No. 225/2025 has been regulated (still pending), there is a 60-day deadline to apply for the program, which may be extended once by a maximum of 60 days by the Rio de Janeiro state government.

As is customary, enrollment entails an irrevocable and irreversible declaration of the included debts, the withdrawal of pending lawsuits and administrative defenses, and a waiver of the right to contest the amounts covered in the future.

Proof of the taxpayer’s withdrawal from pending lawsuits must be submitted within 60 days of paying the lump sum or first installment by submitting copies of the motions filed with the Office of the State Attorney responsible for the lawsuits. Moreover, proof of withdrawal with respect to defenses and appeals pending in the administrative sphere must be submitted on the date the taxpayer requests to join the program.

Exceptions and exclusions

Supplementary Law No. 225/2025 prohibits the partial payment of tax credits covered by the same assessment or debit note.

Tax credits will not be included in the program if there is a final court decision against the taxpayer and the debt is fully secured by a judicial deposit, cash attachment, bank guarantee, surety bond, or any other equivalent form of security.

Payment installment plans will also be terminated if:

• Aside from the first installment, more than two installments remain unpaid at the same time (whether they are consecutive or otherwise);
• Any installment remains unpaid for more than 90 days; and
• Proof of withdrawal of pending judicial and administrative proceedings is not submitted within the legally established timeframes.

The regulation of Supplementary Law No. 225/2025 still awaits publication.

For further information on this topic, please contact Mattos Filho’s Tax practice area.