The IRRF (withholding income tax) settlement for non-residents opens the way to negotiate disputed debts with discounts and instalment payment.
The IRRF settlement for non-residents has been given a new joint public notice by the PGFN (Office of the Attorney General of the National Treasury) and the Receita Federal (Brazilian Federal Revenue Service). This is Joint Settlement Public Notice PGFN/RFB No. 4 of 2026. In practice, it opens a negotiation route for debts of withholding income tax under administrative or judicial dispute. The debts involve capital gains and other income paid to investors resident abroad.
This draft is based on the information available regarding the public notice. For that reason, the points that depend on the official wording are flagged pending verification in the Diário Oficial da União (Official Gazette of the Union).
What has changed with the IRRF settlement for non-residents
Until now, many taxpayers were disputing these assessments without any specific settlement alternative. The public notice now allows adherence to a settlement with discounts on the amount owed. According to the information available, the discounts range from 65% to 25%, depending on the number of instalments.
In addition, payment may be spread over up to 61 monthly instalments. The shorter the term chosen, the greater the discount. In short, the taxpayer trades time for a reduction of the debt.
In all cases, the remaining balance is divided into monthly instalments. There are also rules on penalties. Penalties linked to the controversy, including aggravated penalties, may be included in the settlement with the same discounts applicable to the principal.
Who is affected by the IRRF settlement
The direct audience of the public notice are non-resident investors with IRRF debts under dispute. However, the Brazilian paying source is usually responsible for the withholding. For that reason, companies in Brazil that have remitted amounts abroad should also look closely at the matter.
This includes, for example, companies with foreign partners and transactions involving the sale of equity interests. It also covers payments of income to funds or persons domiciled outside the country. Likewise, investment structures with foreign capital may have pending tax assessments relating to this tax.
What to do now in light of the IRRF negotiation
First, it is advisable to map all tax assessments and proceedings involving IRRF on remittances abroad. Next, it is worth confirming whether each debt meets the condition of a pending dispute. The taxpayer should then compare the cost of the IRRF negotiation with the chances of success in the dispute.
This analysis involves more than arithmetic. For example, adherence usually requires withdrawal from ongoing disputes and acknowledgement of the debt. The decision must therefore take into account the strength of the legal position defended and the cash flow available for the down payment.
What still depends on regulation
Some points require careful reading of the published public notice. The grounds for termination of the settlement and the consequences of late payment of instalments are not included in the information released so far. The same applies to the exact date of publication and to any security requirements.
In the meantime, the prudent approach is to treat the figures above as indicative. Direct verification against the official text should precede any decision to adhere.
In short, the public notice opens a significant window to regularise IRRF liabilities of non-residents at a discount. Nevertheless, a case-by-case analysis remains indispensable. The firm continues to monitor these matters on its page of legal news with commentary on taxation and companies.