State of Rio De Janeiro Implements Special Program for Repayment of Tax Debts in Installments

On December 9, 2025, Decree No. 50.040/2025 was published in the Official Gazette of the State of Rio de Janeiro (“DOERJ”). The decree regulates the special program (the “Program”) allowing for payment in installments of tax debts owed to the State of Rio de Janeiro pursuant to ICMS Agreement No. 69/2025, as well as the special installment program for companies under judicial reorganization or bankruptcy proceedings, pursuant to ICMS Agreement No. 115/2021—both established by Complementary Law No. 225/2025.

The Program aims to encourage tax regularization by reducing penalties and late-payment interest related to taxable events that occurred up to 02/28/2025, regardless of whether such debts have been enrolled as overdue tax liabilities (“Dívida Ativa”).

It is important to note that partial payment of debts included in the same tax assessment will not be permitted, nor may the program be used for debts that have a final and unappealable decision in favor of the State of Rio de Janeiro and are fully granted.

The program’s benefits vary depending on the payment modality adopted, as follows:

• Lump-sum payment: 95% reduction of penalties and late-payment interest;
• Up to ten installments: 90% reduction of penalties and late-payment interest;
• Up to 24 installments: 60% reduction of penalties and late-payment interest;
• Up to 60 installments: 30% reduction of penalties and late-payment interest; and
• Up to 90 installments: no discount.

For debts subject exclusively to penalties, the penalty amount will be reduced to 50%, and the late-payment interest will be reduced according to the percentages listed above.

In addition, each installment must have a minimum value equivalent to 450 UFIR-RJ of the fiscal year in which the installment agreement is executed.

The Decree also allows debts that have been enrolled as overdue tax liabilities to be settled through offsetting, including with credits arising from special judicial payment orders (“precatórios”) provided that: (i) they have already been included in the budget for payment; (ii) they are not subject to any appeal or challenge; and (iii) they are owned by the debtor. Such debts may receive a 70% reduction of legal penalties and late-payment interest. For ICMS debts, only 75% of the amount due may be offset, with the remaining 25% to be paid in cash within five business days.

It is important to note that debts arising from noncompliance with the State Fiscal Equilibrium Fund (FEEF), the Temporary Budgetary Fund (FOT), and the additional ICMS earmarked for the State Fund for Poverty Reduction (FECP) may be included in the Program.

Application to the Program implies irrevocable and irreversible acknowledgment of the debts, with the taxpayer waiving any right to challenge the principal amount or penalties and interests in administrative or judicial proceedings, and requires the withdrawal of lawsuits and administrative defenses related to the debts included in the installment program.

With respect to debts enrolled as overdue tax liabilities, attorneys’ fees shall be due as follows:

• Non-litigated debts: 4% for lump-sum payments and 5% for installment payments;
• Litigated debts: 6% for lump-sum payments and 8% for installment payments;
• Installment payments: attorneys’ fees may be paid in up to 12 monthly installments;
• Installment plans consisting of 61 to 90 installments: attorneys’ fees shall be set at 6% for non-litigated debts and 10% for litigated debts.

For the option aimed at companies under judicial reorganization or bankruptcy, the program includes specific rules, such as:

• The installment request must cover all tax and non-tax debts under the debtor’s name, whether as taxpayer or responsible party, whether assessed or not, and whether registered as outstanding liabilities or not; and
• The debt may be paid in up to 180 installments, with reductions in penalties and late-payment interest ranging from 95% to 65%, depending on the selected installment plan.

The program is not applicable to taxpayers under the Simples Nacional regime.

Taxpayers may opt into the program until 02/08/2026 upon payment of the lump-sum installment or of the first installment.

On December 11, Joint Resolution PGE No. 71/2025 was published, which established in detail the operational procedures required for the effective implementation of the programs, establishing, step-by-step, the routines to be observed by both taxpayers and the Administration.

Tauil & Chequer Advogados associated with Mayer Brown tax practice is available to provide additional clarifications on this matter.

*This content was produced with the participation of law clerk Gean Gomes.