City of São Paulo opens new call for tax settlement agreements

On August 27^th, 2026, the Attorney General’s Office of the Municipality of São Paulo (“PGM”) published Tax Settlement Notice PGM No. 01/2026, which establishes special conditions for the settlement of tax charges enrolled as active debt and subject to judicial dispute.

The adhesion period began on September 14, 2026, through the “Fique em Dia” platform, and will close on October 15, 2026.

Eligible credits include debts subject to judicial proceedings initiated by July 31, 2026, provided that they are enrolled as active debt by the date the settlement is formalized and arise from taxable events occurring on or before December 31, 2024.

In the case of penalties for non-compliance with ancillary tax obligations, those assessed on or before December 31, 2024 are eligible.

Before the discounts are applied to interest and penalties, the debts will be recalculated based on the SELIC rate, replacing the monetary adjustment and late-payment interest criteria provided under municipal legislation, while preserving the tax amount (principal) as of its due date.

The payment conditions are as follows:

Payment method	Discount on SELIC interest and penalties
Lump-sum payment	90%
Up to 3 installments	80%
Up to 6 installments	70%

 

The notice also provides, on an exceptional basis, for a reduction in attorneys’ fees arising from the collection of the settled debts, following the same discount percentages applicable to penalties.

Adhesion to the settlement entails an irrevocable and non-retractable acknowledgment of the settled debts, as well as the withdrawal of judicial actions concerning such debts and the waiver of the rights underlying such actions. The taxpayer must also pay the respective court costs and expenses.

Judicial deposits made to secure tax enforcement proceedings and judicial actions involving the settled debts must be fully applied toward the settlement amount, subject to the conditions set forth in the notice.

The settlement may be rescinded in the event of non-compliance with the applicable conditions and undertakings, including certain cases of default. Rescission results in the loss of the benefits granted and the reinstatement of the debt, with the original charges and calculation criteria restored.