Brazil: ICM / ICMS settlements in São Paulo

Brazil: ICM / ICMS settlements in São Paulo

The Brazilian state of São Paulo has established a program that allows for the settlement of ICM / ICMS tax liabilities with reductions in penalty and interest assessments.

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The ICMS—Imposto sobre Circulação de Mercadorias e Serviços—is a state-level sales tax imposed on the physical movement of merchandise. The ICMS is also levied on certain inter-state and inter-municipal services. The ICM is a state-level tax imposed on the circulation of goods.

The program—Programa Especial de Parcelamento (PEP)—allows for resolution of tax debts:

  • In installment payments made over a 120 consecutive monthly period; taxpayers settling ICM / ICMS tax debuts using the installment payment program would be allowed a reduction of 50% of the amount of penalties otherwise imposed on the unpaid taxes and a reduction of 40% of the amount of interest otherwise assessed in connection with the tax debts; or
  • By a single payment, with a reduction of 75% of the adjustment amount of penalties and 60% of the interest assessment on the liability being allowed

The PEP settlement regime is available from 16 November 2015 to 15 December 2105.

 

Read a November 2015 report (Portuguese) prepared by the KPMG member firm in Brazil: Programa Especial de Parcelamento do ICM/ICMS São Paulo

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