PUBLISHED PGFN ORDINANCE NO. 32/2018 – TRANSFER IN LIEU OF PAYMENT

Attorney General’s Office of the National Treasury (“PGFN”) Ordinance no. 32 of February 8th, 2018, which regulates the procedure for the transfer of real estate in lieu of payment of tax debts before the Federal Government, was published in the Official Gazette (“DOU”) of February 9th, 2018.

According to the normative act, which does not apply to debts found within the scope of National Simples, the transfer must cover the totality of the updated debt and can be complemented by cash.

The property must be registered in the name of the debtor, free of charge, free of any encumbrances, not being accepted those that are difficult to sell, unserviceable or that do not meet the criteria of necessity, utility, and convenience.

The payment will be made by the amount of the valuation report and, in the case of having a value higher than the debt, the asset’s acceptance is conditioned to the express waiver, in a public deed, to reimburse the difference. Such report must be prepared by an official financial institution (urban real estate) or by INCRA (rural real estate), and the debtor will be responsible for its costs.

The option for transfer of assets depends on the withdrawal of legal proceedings and the waiver of its grounds, with the payment of costs and procedural expenses and the respective application, accompanied by the documentation specified in the Ordinance shall be presented to PGFN.