New Tax Settlement Program for Negotiation of Significant Debts Under Judicial Dispute
This week, the Office of the Attorney General of the National Treasury (“PGFN”) published Ordinance No. 721/2025 (see the full text of the regulation here) to regulate the Integral Settlement Program (“PTI”), aimed at the recovery of federal tax debts under judicial dispute with high economic impact.
Federal tax debts registered as outstanding liabilities (dívida ativa) up to April 7, 2025, and exceeding BRL 50 million per registration may be negotiated, provided that: (i) they are under judicial discussion; and (ii) they are secured or suspended by a court decision. Debts of lower amounts may also be included, as long as they are being collected within the same tax enforcement proceeding as the debt over BRL 50 million that will be included.
Differently from other settlement modalities, which typically assess the taxpayer’s payment capacity, the granting of benefits under the PTI is based on the recoverability potential of the debts. This assessment considers the likelihood of PGFN success and the uncertainty of outcomes in each case, depending on the procedural stage and other factors (Reasonable Potential for Recovery of the Judicialized Credit – “PRJ”). The following benefits may be granted:
- discounts of up to 65% on the total amount of the debt (excluding discounts on the principal)
- installment plans of up to 120 months (except for social security contributions, which are limited to 60 installments)
- staggered payments, with or without an initial down payment
- flexibility in the rules for replacing or releasing guarantees
The use of federal court-ordered payment claims (precatórios) or liquid and certain credit rights will be allowed for settling the debts. Judicial deposits must be converted into revenue without benefits, and only any remaining balance may be negotiated under PTI terms. The use of tax loss carryforwards or negative CSLL tax bases for settlement is not allowed.
The PTI application must be submitted through PGFN’s REGULARIZE platform by July 31, 2025, at 6:59 PM (Brasília time). After analyzing the PRJ and the formal elements of the application, the PGFN will submit a settlement proposal. Taxpayers may present counterproposals and even schedule meetings to discuss the proposed terms.
For taxpayers with a significant volume of federal tax debts in active collection, the PTI can represent an excellent opportunity for tax regularization, depending on the terms of the PGFN’s proposal. Given PGFN’s collaborative approach and its experience in consensual tax resolutions, incentivizing proposals for negotiation and effective conflict resolution are expected.
For those who qualify, it is strongly recommended to conduct a thorough assessment of federal tax liabilities under judicial dispute, to gain clear visibility into litigation risks and associated costs. This will provide the necessary basis to determine whether entering into negotiations with PGFN and potentially adhering to the PTI is the right decision.
The tax team at FAS is available to clarify any questions regarding the PTI and to assist taxpayers with everything they may need throughout the process.
