Government reopens program for renegotiating debts with the federal government.

The Attorney General's Office for the National Treasury (PGFN), of the Ministry of Economy, has reopened the Tax Recovery Program, allowing the negotiation of all debts that will be registered as outstanding debt of the Union until August 31, 2021. The enrollment period is from March 15 to September 30 through the Regularize portal.

PGFN Ordinance No. 2,381/2021, which contains the rules, was published today (1st) in the Official Gazette of the Union .

The program provides for extended payment terms of up to 145 months and discounts of up to 70%. Individuals, legal entities, and micro and small businesses are eligible, including those with debts related to the Rural Worker Assistance Fund (Funrural) and the Rural Land Tax (ITR).

The government's expectation with the reopening is to at least achieve the results obtained with the program in 2020, when debts of around R$ 81 billion were negotiated in approximately 270,000 agreements. According to the text, the objective is to allow the resumption of productive activity due to the effects caused on the economy by the Covid-19 pandemic.

Currently, the PGFN offers six different types of settlement agreements. To learn about them and run simulations, simply access the Regularize portal.

Under the Tax Recovery Program, taxpayers may negotiate debts in the following modalities: extraordinary transaction, as provided for in PGFN Ordinance No. 9,924/20; exceptional transaction (PGFN Ordinance No. 14,402/20); transaction in small-value tax litigation (PGFN Notice No. 16/20); and exceptional transaction for debts under the Simples Nacional regime (PGFN Ordinance No. 18,731/20).

The exceptional transaction modalities also cover the debts of small rural producers and family farmers, as provided for in PGFN Ordinance No. 21,561/20. According to the ministry, these rural debt transactions, carried out last year, generated approximately 1,800 agreements, with a total negotiated value of over R$ 1 billion.

Judicial reorganization

For companies undergoing judicial reorganization, the PGFN (Attorney General's Office for the National Treasury) has also regulated the negotiation of debts registered as outstanding and related to the Guarantee Fund for Length of Service (FGTS), which allows, among other things, agreements for the regularization of tax liabilities, involving extended deadlines and discounts. Ordinance No. 2,382/21, containing this measure, was also published this Monday in the Official Gazette of the Union .

The text regulates the changes made by Law 14.112/20, which reforms the Judicial Reorganization and Bankruptcy Law. Among the provisions of the ordinance, the Ministry of Economy highlights the regulation of the tax transaction foreseen in Article 10-C of Law 10.522/02. These transactions are applicable to entrepreneurs or business entities that have had their judicial reorganization approved, with a maximum debt reduction limit of up to 70% and a maximum installment period between 120 and 145 months.