PGE Resolution No. 4,700/2021 was published in the Official Gazette of Rio de Janeiro State on May 10, 2021, setting forth the procedures to allow taxpayers to offer a guarantee related to debts already enrolled for judicial collection before the filing of a tax foreclosure by Rio de Janeiro State.

The possibility to offer a guarantee at the administrative level will enable taxpayers to issue tax clearance certificates, avoiding the filing of lawsuits with the sole purpose to guarantee the issuance of such certificates. However, the offer of a guarantee does not suspend the enforceability of the debts.

The following guarantees are allowed: (i) insurance, (ii) bank and (iii) other assets and rights subject to public register or subject to seizure according to the preference order established by Section 11 of Law No. 6,830/1980.

The PGE resolution also authorizes the offer of assets or rights of third parties, as long as expressly authorized by the third party, as well as assets or rights already subject to seizure, provided that they have been evaluated as being sufficient to fully guarantee all debts.

The State Attorney’s Office must, within 30 days of the request by the taxpayer, analyze the offer of the early guarantee, and may refuse the guarantee (providing the proper grounds) or notify the taxpayer to submit additional information. After the deadline for analysis, the State Attorney's Office must file the tax foreclosure within 30 days.

The taxpayer may also file a request for the State Tax Attorney’s Office to anticipate the filling of the tax foreclosure for anticipated deposit and consequent debt guarantee. In this case, the tax foreclosure must be filed by the State Attorney's Office within 72 hours of the request, which may suspend the enforceability of debts, provided that all requirements foreseen in the PGE resolution are followed.

PGE Resolution No. 4,700/2021 became effective on the date of its publication.

For further information, please contact our Tax team.