Brazil to open new tax regularisation programme

5 January 2017, the Brazilian government gazetted Provisional Measure No. 766/2017 to introduce a Tax Regularisation Programme (PTR) to incentivise individuals and companies to settle their federal tax liabilities.

The PTR is an opportunity for companies and individuals to pay their tax or non-tax liabilities, due on or before 30 November 2016, or charged by the tax authorities on or after 6 January 2017. All liabilities may be included in the PTR, including those that are subject to previous, terminated or active instalment programmes. For liabilities under administrative or judicial dispute, the taxpayer must withdraw the dispute to be included.

The PTR does not grant any discounts of interest or fines. The main benefit is the possibility of compensating the indicated debts against related tax credits or against tax losses calculated for Corporate Income Tax (IRPJ) and Social Contribution on Net Profits (CSLL) purposes.

The PTR will be implemented by the Brazilian Revenue Service (RFB) and National Treasury’s Attorney General’s Office (PGFN) within 30 days. Taxpayers must then enter the PTR within 120 days