São Paulo’s municipal registered tax debt (dívida ativa) under judicial dispute may be settled with discounts, but joining the programme requires acknowledgment of the debt and withdrawal of the lawsuits.
Settlement Notice PGM (Municipal Attorney General’s Office) no. 01/2026, of 27 August 2026, allows municipal registered tax debt under judicial dispute to be settled with discounts on interest and fines. Adherence runs from 14 September to 15 October 2026, through the Fique em Dia platform (the City of São Paulo’s tax settlement portal), and requires withdrawal of the lawsuits.
Which municipal registered tax debt credits are covered by the settlement?
The programme covers tax credits entered in the registered tax debt roll and disputed in court. The dispute must have been commenced by 31 July 2026, by means of motions to stay tax foreclosure (embargos à execução fiscal), a plea of non-enforceability (exceção de pré-executividade) or a lawsuit. In addition, the taxable events must have occurred up to 31 December 2024. Fines for breach of ancillary obligations qualify if assessed by that date.
Non-tax credits and credits under the Simples Nacional regime (the simplified tax regime for micro and small businesses) are excluded. Credits included in an ongoing instalment plan are likewise excluded, with an exception for instalment plans granted without discounts. Companies whose bankruptcy has been declared may not join. Taxpayers whose settlement was terminated within the last two years are also barred.
How do discounts, instalments and court deposits work?
The municipality recalculates the debt with interest at the SELIC rate (the Brazilian benchmark interest rate), preserving the amount of the tax as at its due date. On interest and fines, the discount is 90% for a lump-sum payment. In up to three instalments, it falls to 80%. In up to six instalments, it stands at 70%.
Attorneys’ fees follow the same scale as the fines, on an exceptional basis, in connection with Themes 1217 and 1419 of the STF (Federal Supreme Court). No instalment may be lower than BRL 50.00 for individuals or BRL 300.00 for legal entities. Court deposits, in turn, are set off against the settlement amount, and their withdrawal is the responsibility of the adhering taxpayer.
What adherence requires from those currently litigating
Joining the programme means acknowledging the debt irrevocably and irreversibly. It also means withdrawing the lawsuits and waiving the right on which they are based. Within 60 days, the taxpayer must evidence the withdrawal and pay the court costs, in accordance with the rules of Municipal Law no. 17,324/2020 and of PGM Ordinance no. 48/2023.
Once formalised, the agreement cannot be amended or cancelled. For this reason, running a simulation on the platform helps to check the amounts before deciding. Default on three instalments for more than 90 days terminates the settlement without prior notice and reinstates the full amount of the charge.
In our view, the decision calls for a case-by-case analysis, since the waiver puts an end to the legal argument under dispute. Before 15 October, compare the discount with the prospects of success in each proceeding and run a simulation of the agreement.
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