Brazil: Sao Paulo City Hall publishes settlement | Insight

In brief

On 28 October 2025, the Public Notice PGM No. 2/2025 was published, establishing the “Fique Em Dia” program for joining the settlement of outstanding debts owed to the Municipality of Sao Paulo.

The program allows for the regularization of tax and non-tax debts registered as outstanding municipal debt, whether already filed or to be filed in lawsuits, originating from taxable events that occurred up to 31 December 2024.

The deadline for joining is from 31 October 2025 to 12 December 2025.

More details

The main features of the public notice are as follows:

Public Notice PGM No. 2/2025 (Incentivized Installment Program (PPI) 2025)

Which debts can be included in the agreement?

Tax (such as Urban Building and Land Tax (IPTU), Service Tax (ISS), Real Estate Transfer Tax (ITBI)) and non-tax debts registered as outstanding municipal debts.
Debts filed or to be filed in lawsuits, originating from taxable events occurring up to 31 December 2024.
Fines for non-compliance with ancillary obligations issued until 31 December 2024.

Non-eligible debts

Traffic fines, environmental fines, fines for misconduct, ISS under the “Simples Nacional” tax regime, and debts already paid in installments with discounts.

Deadline

From 31 October 2025 to 12 December 2025.

Payment plans and discounts for tax debts

Tax debts

Nontax debts

a. 95% reduction in interest and fines and, when the debt is not at the judicial level, a 75% reduction in legal fees, to be paid in a lump sum.

b. 65% reduction in interest and a 55% reduction in fines and, when the debt is not in the judicial level, a 50% reduction in legal fees, to be paid in 60 installments.

c. 45% reduction in interest and a 35% reduction in fines and, when the debt is not in the judicial level, a 35% reduction in legal fees, to be paid in 61 to 120 installments.

Note: The reductions in the percentage of legal fees mentioned above do not apply when the legal fee is already set in court, in which case the court decision will be observed.

a. 95% reduction in interest and fines and, when the debt is not in the judicial level, a 75% reduction in legal fees, to be paid in a lump sum.

b. 65% reduction in interest and fines and, when the debt is not in the judicial level, a 50% reduction in legal fees, to be paid in 60 installments.

c. 45% reduction in interest and fines and, when the debt is not in judicial level, a 35% reduction in legal fees, to be paid in 61 to 120 installments.

Note: The reductions in the percentage of legal fees mentioned above do not apply when the legal fee is already set in court, in which case the court decision will be observed.

Additional information

Debts can be paid in installments over up to 120 months, with possible restrictions on the maximum number of installments.
Minimum amount of BRL 50 for natural person and BRL 300 for legal entities.
Legal fees for debts registered and not filed in lawsuits are also reduced according to the chosen payment plan.
The agreement can be formalized at this link.

We remain at your disposal to clarify any doubts you may have.

* * * * *

*Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.

Explore More Insight

View All