United States

Brazil: Amnesty Program for Municipal Service Tax in the City of São Paulo

Jan 19, 2015
From KPMG TaxWatch

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On January 5, 2015, the city of São Paulo published Decree No. 55,828 establishing an amnesty program for tax and non-tax debts owed the city. The amnesty program applies to tax and non-tax debts due through December 31, 2013. Taxpayers may apply until April 30, 2015 to settle these debts as follows: (1) in a single installment payment, with 75 percent reduction on penalties and legal fees and 85 percent reduction on the interest levied on the tax debt or (2) in up to 120 monthly installments, with 50 percent reduction on penalties and legal fees and 60 percent reduction on the interest levied on the tax debt. Tax and non-tax liabilities under administrative-judicial assessments and connected to other previous amnesty programs may also be included provided that the taxpayer formally withdraws from existing discussions and previous amnesty programs in place. The amnesty coverall all local taxes including the municipal service tax (ISS). The ISS is a municipal tax imposed on revenues derived from providing services, except communication and inter-municipal and interstate transportation services, in the city. Each Brazilian municipality determines its own list of taxable services and rates applicable to it. For further information regarding the tax amnesty program in São Paulo, please contact Murilo R Mello at 305-913-2781.

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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.