Installment of tax debts before the State of Rio de Janeiro for companies in judicial restructuring

Law n. 8,502/2019, published on September 2, 1919 in the Rio de Janeiro official press, establishes the possibility to pay tax debts related to the State of Rio de Janeiro on installments, guaranteeing special conditions to companies in judicial restructuring, such as discounts on fines and interest.

According to the new legislation, once the judicial restructuring has been approved/granted, the payment request may be filed at any time by the company, individual entrepreneur or individual company with limited liability.

The taxpayer who joins the installment program may choose one of the following conditions:

• Single payment: 90% discount on fines and 80% interest;
• Payment in up to 24 months: 80% discount on fines and 60% interest;
• Payment in up to 48 months: 60% discount on fines and 40% interest;
• Payment in up to 72 months: 40% discount on fines and 30% interest;
• Payment in up to 96 months: 20% discount on fines and 10% interest; and
• Payment in up to 120 months: no discount or rebate.

The law also provides for reductions of fines, charges and interest in cases of tax debtors who develop or will develop social projects in the state of Rio de Janeiro. Finally, the state Executive Office may also regulate the special installment program for taxpayers of social relevance, in which case the installment may be made up to 180 months, without reducing the tax debt (surcharges).