Proposal for settling tax debts linked to platform charter contracts published in Brazil

On May 17, 2024, the Attorney General of the Brazilian Treasury’s Office (PGFN) and the Brazilian Federal Revenue (RFB) published Notice No. 6/2024. The notice concerns a proposal for using a tax transaction to settle IRRF, CIDE, PIS, and COFINS debts subject to administrative or judicial litigation and associated with remittances abroad stemming from bipartition of vessel/platform charter contracts and service provision contracts, as per the terms of Law 9,481/1997.

Depending on the specific form of the transaction, taxpayers will be able to negotiate to pay the consolidated debt value with reductions of 35% and 65% (in up to 24 installments).

Moreover, the envisaged forms of the tax transaction are expected to include the use of credits resulting from tax losses and the negative Social Contribution Tax on Net Profit (CSLL) calculation base.

Tax credits linked to judicial deposits warrant particular attention. According to the notice, they should be transformed into definitive payments or converted into government revenue. As such, only the remaining value can be negotiated.

Taxpayers must use the government’s  Regularize Portal to apply for debts registered with the government as active debt. As for debts with the RFB, taxpayers will need to open a formal digital process on the Virtual Service Center Portal (e-CAC Portal).

For further information regarding the procedures and requirements for adhering, please contact Mattos Filho’s Tax practice area.