The Government recently published a legislation approving the Special Program of Reduction of State Debt (PERES), which permits the voluntary payment of tax and contribution debts, in full or by installments, with exemption, or reduction, of interest payments and other charges associated with the debt.

The scope of PERES are the tax debts which are, at the date of accession, subject to voluntary or enforced charge and which deadline to charge is May 31, of 2016, for periods up to December 31, of 2015. The debts should be tax foreclosure or already settled on the date of entry into force of the legislation (4 November), even if they are not in tax enforcement.

There are excluded from this program the debts resulting from taxes of external entities, fines and replacements, the special contributions for the banking sector, energy and pharmaceutical, the debts paid before the entry into force of the legislation and the settled debts after the date of entry into force of the legislation.

The taxpayer may submit his application to PERES directly on the Tax Services Website or submit the application in person at any Tax Services. The subscription period elapses from the date of entry into force of the legislation until December 20, 2016. The subscription is considered effective with the issuance of its "Subscription Agreement" which will have its own numbering.

The types of subscription provided for in PERES are the full payment and the installment payment. It is accepted installment payments with automatic approval up to 150 installments.

Benefits provided for in PERES when the option is the full payment of debts:

  1. If the taxpayer make full payment of all tax execution procedures (under the subscription) until 20.12.2016, default interest, compensatory interest and court costs will be nullified.
  2. It is also foreseen an attenuation of the fines resulting from the practice of tributary misdemeanor (associated with lack of tax payment).

In case of the taxpayer opts for installment payment type, he may benefit from a reduction of default interest, compensatory interest and court costs, based on the following number of installments:

  • - 10% in case of 73 to 150 installments;
  • - 50% in case of 37to 72 installments;
  • - 80% in case of not exciding 36 installments.

The non-payment of 3 or more installments will lead to the interruption of the installments payment plan as well as the replacement of all the possible benefits that have been granted under this subscription. The interruption of the installments payment plan does not imply the loss of the benefits obtained by full payment.