National treasury attorney general’s office (“PGFN”) enacts new settlement program for high-value tax litigation based on the Reasonable Potential for Recovery (“PRJ”)

On April 7, 2025, the Federal Treasury Deputy Attorney’s Office (“PGFN”)  enacted Ordinance PGFN No. 2025, establishing a new type of settlement applicable to debts registered as overdue in amounts equal to or exceeding BRL 50 million. The amount subject to the settlement must be, on April 7, 2025, under judicial dispute and either fully secured by judicial guarantee or with its enforceability suspended by a court decision.

This new settlement model offers benefits based on the Reasonable Potential for Recovery of Judicialized Credit (“PRJ”), according to exclusive criteria established by the Tax Authorities, including:

• Discounts of up to 65% on the total amount of the debt, except for the principal;
• Installment payment plans of up to 120 months, except for social security contributions (Article 195, I, ‘a’ and II of the Federal Constitution);
• Possibility of gradual payment structuring, with or without a down payment;
• Flexibility in the rules for the substitution or release of guarantees;
• Use of federal court-ordered payments (“precatórios”) or credit rights, with final and unappealable decisions, eligible for offsetting against the Federal Government to reduce taxes, fines, interest, and legal charges.

Judicial deposits made to guarantee the negotiated debts will be automatically converted into final payments. Thus, the payment discounts and conditions will only apply to the remaining balance.

The minimum required amount must be assessed per individual overdue liabilities certificate (CDA). However, debts of lower value may be included in the settlement if they are being disputed in the same judicial proceeding as a (Active Debt Statement (“CDA”) that meets the minimum threshold.

Unlike previous programs, this settlement does not consider the taxpayer’s payment capacity, but rather the likelihood of credit recovery, considering PGFN’s probability of success in the legal proceedings and the estimated duration of the litigation.

In addition to the usual documentation, the settlement proposal must include a statement signed by a certified accountant certifying that the CDAs are accounted for in accordance with Brazilian Accounting Standards.

After review, PGFN will present a proposal via the REGULARIZE portal. The taxpayer may submit a counterproposal or request meetings to negotiate the terms.

Applications must be submitted via REGULARIZE by 7:00 p.m. on July 31, 2025.

For any questions, our Tax team is available to assist you.