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Date: 20 de March de 2025
Posted by: CPDMA Team

State Government launches Refaz Reconstruction: public notice for negotiation of ICMS debts

State Government launches Refaz Reconstruction: public notice for negotiation of ICMS debts

The Refaz Reconstruction (Decree 58.067/2025) will allow the regularization of debts with the State Revenue Service and the State Attorney General's Office (PGE) for companies owing ICMS, with a reduction of up to 95% in interest and fines.

The initiative aims to reduce an ICMS debt stock of R$ 55.2 billion in the state. Currently, about 72% of this amount is in the judicial collection phase, with 60% of the total consisting of interest and late penalties.

Adherence to Refaz Reconstruction will be available from March 19, 2025, to April 30, 2025, offering two options for settling ICMS-related debts: full regularization of all debts or payment of specific debts.

If the taxpayer chooses full settlement, they will have access to the highest discounts, which are:

  • 95% discount for lump-sum payment;

  • 90% discount for installment payments in up to six installments.

On the other hand, taxpayers who prefer to select specific debts for settlement will receive discounts based on the number of installments chosen:

  • 75% discount for lump-sum payment;

  • 70% discount for installment payments in up to 18 installments.

For longer terms, the discounts will be progressively reduced:

  • 50% discount for installment payments between 19 and 36 installments;

  • 30% discount for installment payments between 37 and 60 installments;

  • 10% discount for installment payments between 61 and 120 months.

There is also the option to schedule direct debit payments, with a minimum installment amount of R$ 300.

Finally, Refaz Reconstruction does not allow debt compensation.

Tax Law | CPDMA Team

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