ICMS PEP – São Paulo – Joint Resolution No. 1, Of Feb. 28, 2013 – Treasury Office And Attorney General Office Of The State Of São Paulo

Last week, the effects of Joint Resolution no. 1 of the Treasury Office and Attorney General Office of the State of São Paulo, dated February 28, 2013, came into force, ruling on the necessary administrative proceedings for the settlement of debts of the Tax on the Circulation of Goods ("ICM") and of the Tax on the Circulation of Goods and Provision of Interstate and Intercity Transportation and Communications Services ("ICMS"), within the Special Installment Agreement Program ("PEP").

Adhesion to the PEP must be formalized between March 1, 2013, and May 5, 2013, and may include the ICM and ICMS debts relative to taxable events occurring up to July 31, 2012.

For such, it is necessary to access the ICMS PEP system (http://www.pepdoicms.com.br), using the same login and password used to access the Electronic Tax Office ("PFE") or the same login and password of the ICMS PPI system. It should be stressed that a request to register with the ICMS PEP system will be necessary, at the Tax Office tied to the establishment, for Taxpayers who do not have them yet.

When accessing the PEP system, the Taxpayer must select the debts that will be effectively settled under Decree 58.811, of Dec. 27, 2012. After this phase, it will be possible to simulate the payment terms within the available options and choose one of them. When completing the operation, an ICMS PEP number and the Adhesion Agreement will be generated along with the respective GARE-ICMS of the first installment or the lump sum payment.

In addition, the remaining balance of debt installments, recorded or not as collectible by the government (with some exceptions), may be settled through the ICMS PEP, which is to be requested by May 15, 2013. For debts that fit into such conditions, it will not be possible to directly include them through the system as described above.

Before, however, the Taxpayer must request the migration of the remaining balance of the previous installment plan to the ICMS PEP, which can be done through the Electronic Tax Office tied to the establishment. Later, the inclusion of the remaining balance of previous installment plans should be formalized in the PEP ICMS.

Moreover, the Taxpayer may also request: (i) the rectification of the debt values stated in the list; or (ii) the inclusion of debts stated in an information slip or ascertained by the tax authorities that are not included in the list; the request having to be decided within 15 (fifteen) days by the relevant...