The Federal Revenue Service Opens New Opportunities for Tax Debt Negotiation in Administrative Litigation

On July 13, 2026, the Brazilian Federal Revenue Service (RFB) announced two new tax settlement programs for taxpayers with debts under administrative review. Among other benefits, the rules allow taxpayers to settle part of their debts using tax loss carryforwards and negative CSLL tax bases.

The deadline for enrolling in both programs is October 30, 2026.

I. Program for Larger Debts.

This program covers individuals and legal entities with tax and social security debts—including those for which they are liable on behalf of third parties—of up to R$ 50 million, which are currently under administrative review. Debts under the Simples Nacional tax regime are excluded from this negotiation, with the exception of fines for noncompliance with ancillary obligations.

The conditions vary depending on the likelihood of recovering the debt and the taxpayer’s ability to pay:

– Debts classified as uncollectible or difficult to collect: reductions of up to 100% on interest, fines, and fees, capped at 65% of the total debt amount. It is possible to make an initial payment of 5% or 10%, spread over up to five months, and pay the remainder in up to 115 installments. If the taxpayer opts for the 10% down payment, they may use tax loss carryforwards and negative CSLL tax bases to offset up to 30% of the remaining balance.

– Individuals and taxpayers classified as social or small-scale entities (such as micro-enterprises, small businesses, charitable hospitals, cooperatives, third-sector organizations, and educational institutions): a 5% down payment in up to ten installments, use of tax losses and a negative CSLL tax base to offset up to 30% of the balance, and payment of the remainder in up to 135 installments. In this case, the total discount can reach 70% of the debt.

– Social security debts that are uncollectible or difficult to collect: an initial payment of 5% in up to ten installments, the option to use tax losses and a negative CSLL tax base, and payment of the balance in up to 50 installments—always within the total limit of 60 months.

– Loans with good prospects for recovery:

A 10% down payment in up to ten installments and payment of the balance in up to 74 installments, with no discounts and no option to use tax losses or a negative CSLL tax base. For social security debts in this category, the down payment is 5% in up to ten installments, with the balance paid in up to 50 installments.

One point worth highlighting: for debts classified as uncollectible or difficult to collect, tax loss carryforwards and negative CSLL tax bases may be used not only to offset fines, interest, and surcharges, but also to reduce the principal amount of the debt. In addition to a company’s own credits, credits from parent companies, subsidiaries, or companies under common control may also be used, provided they are calculated by December 31, 2025, and all other program requirements are met.

Membership also requires:

– inclusion of all debts related to the same administrative proceeding; partial settlement is not permitted;

– withdrawal from all related administrative and judicial proceedings, waiving the legal arguments involved;

– payment of the first installment by the last business day of the month in which enrollment occurs; and

– Maintaining tax compliance with the RFB and the Attorney General’s Office of the National Treasury, and settling within 90 days any debts that become due after the agreement is formalized.

II. Program for Smaller Debts.

This second program is aimed at individuals, sole proprietors, microentrepreneurs, microbusinesses, and small businesses with debts that are subject to administrative litigation or have not yet been contested, provided that the amount does not exceed 60 minimum wages per administrative proceeding.

The payment options are:

– up to 12 installments, with a 50% discount on the total amount owed;

– up to 24 installments, with a 40% discount;

– up to 36 installments, with a 35% discount; or

– Up to 55 installments, with a 30% discount.

III. How to Evaluate the Best Option.

The choice of the most advantageous option depends on factors such as the nature of the debt, its recoverability rating, the taxpayer’s financial capacity, and the availability of tax loss carryforwards and a negative CSLL tax base.

Our tax team is available to review each situation on a case-by-case basis and recommend the most appropriate payment method and terms.