Brazil: Special tax regularization program | KPMG | GLOBAL

Brazil: Special tax regularization program re-established

Brazil: Special tax regularization program

A provisional measure has been issued to reinstate a “special tax regularization” program.

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In Brazil, a “Provisional Measure” (Medida Provisória—MP) is an “act” issued by the president, with the authority of law until later approved by Congress. The Provisional Measure is effective as from its date of publication for a 60-day period, but it may be extended for an additional 60-day period (for a total of 120 days) on a request from Congress. In January 2017, MP 766 was issued to introduce a tax regularization payment program to provide Brazilian taxpayers with an opportunity to settle their federal tax debts. The program did not provide for amnesty of penalties or interest, but allowed taxpayers to resolve their federal tax debts in installment payments. The program also allowed the partial settlement of tax debts with the use of tax credits and/or the use of tax loss carryforwards. Read more in a KPMG report (January 2017).

MP 766 failed to be enacted into law, yet the executive branch issued Provisional Measure (MP) 783, on 31 May 2017 to re-instituted the “special tax regularization program” (Programa Especial de Regularização Tributária—PERT) with certain adjustments. The executive branch adjusted some settlements of tax debts; established a new cut-off date for eligible debts; and provided a new membership deadline. 

 

Read a June 2017 report (Portuguese) prepared by the KPMG member firm in Brazil

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