On August 5, 2022, Ordinance PGFN No. 6.941 was published, amending Ordinance PGFN No. 6.757/2022, which regulates the settlement of federal government and FGTS credits.

The most noteworthy change is that item II of Article 36 of Ordinance PFGN No. 6.757/2022 was revoked, removing the restriction that tax loss credits and a negative balance of CSLL only be used to amortize interest, fines and legal charges. However, these others regulations were maintained: That tax loss credits and a negative balance of CSLL can be used to pay (i) debts considered irrecoverable or hard to recover and (ii) debts classified as non-existent or paid off, as recognized by a final judicial decision or by means of federal writs of payment issued in favor of the taxpayer, in disfavor of the federal government.

In addition, Ordinance PGFN No. 6.941/2022 amended §1 of Article 46 of Ordinance PFGN No. 6.757/2022 to clarify that debtors with debts enrolled in federal overdue tax liability with a total amount between BRL 1 million and BRL 10 million may propose or receive a proposal for an individual simplified settlement.

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This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.