Brazilian Internal Revenue Service Issues New Tax Settlement Notices for Small-Value Debts and Debts of up to BRL 50 Million

On July 15, 2026, Tax Settlement Notices No. 9/2026 and No. 10/2026 of the Brazilian Internal Revenue Service (IRS) were published in the Official Federal Gazette (Diário Oficial da União). These notices establish new modalities of tax settlement by adhesion within the scope of administrative tax litigation.

Taxpayers may apply to participate in the aforementioned Public Notices until October 30, 2026, by submitting an application exclusively through the Brazilian IRS’s system (“Portal de Serviços”).

Tax Settlement Notice No. 9/2026 – Debts of up to R$ 50 Million

Tax Settlement Notice No. 9/2026 is directed at individuals and legal entities that hold tax credits subject to administrative tax litigation in amounts not exceeding BRL 50 million per proceeding.

The program encompasses federal taxes and social contributions collected through DARF (“Documento de Arrecadação de Receitas Federais”), excluding debts under the Simples Nacional regime (except for penalties arising from non-compliance with ancillary tax obligations).

With respect to credits classified as irrecoverable or difficult to recover, the notice authorizes discounts that may reach the full amount of accrued interest, penalties, and legal charges.

There is, however, an overall reduction cap: the discount may not exceed 65% of the total amount of each credit under negotiation. This cap is raised to 70% where the adhering taxpayer is an individual, a micro-enterprise, a small business, Santa Casa de Misericórdia (a charitable hospital), a cooperative society, a civil society organization, or an educational institution and tax assessments classified as uncollectible or difficult to recover

Regarding installment payments, the remaining balance may be divided into up to 115 monthly installments, extended to 135 installments for taxpayers belonging to the categories entitled to the enhanced discount cap. It should be noted that, in the case of social security contributions the payment term may not exceed 60 months, by virtue of an express constitutional prohibition.

Of particular note is the possibility afforded by Tax Settlement Notice No. 9/2026 for the taxpayer to apply credits arising from corporate income tax (IRPJ) loss carryforwards, as well as from a negative CSLL (Social Contribution on Net Profits) calculation basis, provided such credits were determined by December 31, 2025, toward the amortization of up to 30% of the outstanding balance remaining after the application of the discounts. This amortization applies to the entire remaining debt, encompassing principal, penalties, interest, and any other charges.

Tax assessments deemed to have a high or medium prospect of recovery are subject to different treatment: no reduction is granted on the amount owed, and only installment payment is allowed—up to 74 monthly installments, or up to 50 installments in the case of social security contributions. It is important to note that, in this specific scenario, the notice expressly prohibits offset against credits derived from tax loss carryforwards or a negative CSLL calculation basis, restricting this benefit to situations in which the tax assessment is classified as irrecoverable or difficult to recover.

Tax Settlement Notice No. 10/2026 – Small-Value Tax Settlement

Tax Settlement Notice No. 10/2026 is aimed at individuals, individual micro-entrepreneurs (MEI), sole proprietors, micro-enterprises, and small businesses holding tax credits in administrative litigation or pending challenges, in amounts of up to 60 minimum wages per administrative proceeding.

Taxpayers may settle their outstanding debts through installment plans ranging from 12 to 55 months, with a reduction of 30% to 50% of the total amount owed. The assessment of the taxpayer's ability to pay is waived as a requirement for granting this benefit.

It is worth emphasizing that Tax Assessment Notice No. 9/202 does not allow the use of IRPJ tax loss carry-forward credits or a negative CSLL calculation basis to offset the outstanding balance.

For further information regarding this alert, please contact our tax team at: TaxpartnersTC@mayerbrown.com

*This content was produced with the participation of law clerk Isabella Cotrik.