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ICMS amnesty in Rio de Janeiro state
The state of Rio de Janeiro issued Decree n. 44,780 (7 May 2014) to provide certain relief under an amnesty program for taxpayers settling their liabilities for ICMS.
ICMS amnesty covers past ICMS liabilities due until 31 December 2013, and other changes related to ancillary tax obligations (for example, ICMS debts under other tax amnesty regimes could be included under the present program).
The ICMS liabilities can be settled under the amnesty program as follows:
- If settled in a single payment—a 75% reduction of penalties and 60% reduction of the other additions to tax
- If settled pursuant to a plan for up to 120 monthly installments—a 50% reduction of penalties and 40% reduction of the other additions to tax
Taxpayers may not use amounts in “judicial deposits” to settle ICMS debts. However, taxpayers may use accumulated ICMS credits, up to a 50% limit of the total debt liability included under the amnesty program (with applicable reductions).
ICMS debts in connection with judicial / administration decisions or discussions may also be enrolled in the ICMS amnesty program. Under this option, ICMS debts must be fully included in the amnesty program (partial settlements are not permitted). Those taxpayers with ICMS debts must formally withdraw from any discussions currently in place.
The formal procedures for the ICMS amnesty program have not yet been released. It has been reported that deadlines to apply for the program will be (1) from 1 August to 30 September for taxpayers who intend to use accumulated ICMS credits; and (2) from 1 July to 30 September for taxpayers who will not use accumulated ICMS credits.
ICMS amnesty in São Paulo
The State of São Paulo introduced an ICMS amnesty program that is similar to the one in Rio Janeiro, but with enrollment to be submitted via an online application from 19 May to 30 June 2014.
Decree n. 60,444 (13 May 2014) establishes the ICMS amnesty program for ICMS debts due until 31 December 2013, to be settled, as follows:
- If settled in a single payment—a 75% reduction of penalties and 60% reduction of interest levied over the penalty
- If settled in up to 120 monthly installments—a 50% reduction of penalties and 40% reduction of the interest levied over the penalty
The rates of interest will vary according to the number of installments chosen by the taxpayer (e.g., from 0.64% to 1% per month).
Also, in instances of tax assessments, taxpayers will be able to obtain a 70%, 60%, or 45% discount over the updated amount of penalty, depending on when the submission (15 days, 16 to 30 days, or more as from the tax assessment notice).
ICMS liabilities subject to administrative or judicial assessments may also be included in the amnesty program. Again, in such instances, the taxpayer must formally withdraw from discussions currently in place.
State tax authorities are expected to issue regulations soon, regarding the possible ability to use accumulated credits and the refunds to settle ICMS debts.
For more information, contact a tax professional with KPMG’s Americas Center:
(202) 533 5681
(305) 913 2789