By Fernanda Derenievicki Tossulino
On November 6, the State of Paraná published Decree No. 7,855/2024, regulating State Law No. 21,860/2023, which governs the concept of tax settlements (transação).
The decree establishes conditions and requirements for the State Attorney General’s Office and opposing parties or debtors to enter into dispute resolution transactions. The following are eligible for settlement: (i) tax credits registered as outstanding debt; (ii) tax credits not registered as outstanding debt but subject to ongoing judicial disputes; and (iii) non-tax credits registered as outstanding debt.
Similar to the mechanisms already implemented by Brazil’s Federal Attorney General’s Office, settlements in Paraná may take the form of: (i) individual agreements, initiated by the debtor or the State Attorney General’s Office; or (ii) adherence to a proposal made by the State Attorney General’s Office.
The terms may involve debt installment payments and discounts on penalties and interest, while always preserving the principal amount of the credit. Reduction percentages will be based on the debtor’s payment capacity and the credit classification, with the calculation methodology to be outlined in a Joint Resolution by the State Attorney General’s Office and the State Treasury Department. Any requests to review these criteria will be evaluated by the Settlement Department, a division created under the decree.
The decree prohibits settlements for ICMS credits under the Simples Nacional regime (except in special cases), credits related to the Poverty Reduction Fund surcharge, credits from settlements rescinded within the last three years, and credits already covered by an active settlement agreement.
The decree will take effect on April 7, 2025.
The Tax Law Department at Marins Bertoldi Advogados is closely monitoring updates on this matter and is available to clarify any questions and provide further insights tailored to each company’s specific needs.
