Public Utility to Paulistas: Incentive Installment Program of the Municipality of São Paulo

The 2024 Incentive Installment Payment Program (PPI 2024), regulated by Decree No. 63.341/2024, offers taxpayers with ISS, IPTU, ITBI, Fees and Fines debts the possibility of transferring debts and a table of discounts with the option to pay in installments.

Established by Law No. 18,095/2024, the Incentive Installment Program (PPI) offers discounts of up to 95% on fines and interest for ISS, IPTU, ITBI, Fees and Fines debts.

The PPI 2024 was set up with a view to promoting the settlement of tax and non-tax debts, whether or not constituted, whether or not registered as active debt, whether or not filed, due to triggering events that occurred up to 31 December 2023, as detailed in an article previously published in Único.

The decree provides for the possibility of transferring tax debts remaining from other ongoing installment plans to the 2024 PPI, with the proviso that in these cases the discounts from the original installment plan will no longer apply. It also provides that tax credits arising from fines for non-compliance with ancillary obligations may be included in the 2024 Incentive Installment Payment Program, provided they were issued by December 31, 2023.

Only debts arising from obligations of a contractual nature, breaches of environmental legislation, breaches of the Special Regime for the Collection of Taxes and Contributions - Simples Nacional and which have been included in a transaction entered into with the Municipal Attorney General's Office may not be included in the 2024 PPI.

The discounts applicable to joining the PPI 2024 vary depending on the payment method and the debt.

Payment Methods	Tax debit	Non-tax debt
Single installment	95% of interest and fine	95% of late payment charges
Up to 60 installments	65% of interest and 55% of fine	65% of late payment charges
From 61 to 120 installments	45% interest and 35% fine	45% of late payment charges

Adherence to PPI 2024 will be made at the request of the interested party, using a specific application available on the São Paulo City Hall website, or at the initiative of the Tax Administration for debts relating to Urban Property Tax (IPTU).

The application to join the PPI 2024 can be made between April 26 and June 28, 2024, except in relation to the transfer of debts remaining from other installment payments, in which case adhesion to the program must be made by June 14, 2024.

It should be noted that adherence to the program implies the waiver of challenges, defenses and administrative appeals and of actions and embargoes to tax enforcement relating to the debts subject to the installment plan.

Finally, the decree also amended the ISS Regulations, clarifying that the ISS levied on health insurance services, as provided for in sub-items 4.22 and 4.23 of Complementary Law 116/2003, will be calculated on the difference between the amounts charged and the transfers made to health service providers, in line with the changes already introduced by Law 18.095/2024.

For any questions, clarifications or guidance on the procedure, please contact our team.