On May 18, the Federal Treasury and the Federal Revenue of Brazil jointly published the Notice 11/2021, which elected “Profit Sharing – PLR” as the first tax thesis subject to a TAX SETTLEMENT AGREEMENT based on Law no. 13,988/2020 and Ordinance ME nº. 247/2020. The adhesion term is from June 01st to October 31st, 2021.
The main rules applicable to said Tax Settlement Agreement are as follows:
- The following theses are eligible to be included: (i) PLR for employees and (ii) PLR for non-employees (statutory officers).
- Administrative and judicial debts related to alleged non-compliance with the requirements of Law no. 10,101 / 2000.
- The case must not be closed on the merits, meaning that they must be pending a final decision.
- Obligation for the company to include all its administrative and judicial functions dealing with each adhered thesis.
- Judicial deposits must be fully converted into income and only the remaining amount will be subject to discounts.
- Enrollment implies confession of the debt.
- Enrollment does not allow the release of liens on assets, which will only occur after full settlement.
Once these conditions are met, taxpayers apply the following payment terms:
I – 5% of advance payment, without discounts in up to 5 installments. Remaining amount with a 50% discount on the total amount, in up to 7 installments;
II – 5% of advance payment, without discounts in up to 5 installments. Remaining amount with a 40% discount on the total amount, in up to 31 installments;
III – 5% of advance payment, without discounts in up to 5 installments. Remaining amount with a 30% discount on the total amount, in up to 55 installments.
In this way, taxpayers must carefully evaluate their specific case (since “each PLR is a different PLR”), calculate and compare the relevance of the discounts in view of the chances of success and consider the impact of the need to waive all cases that have the same subject.
Please let us know should you need any further clarification.