Municipalities that have debts with the National Social Security Institute (INSS) registered in the Active Union Debt will be able to renegotiate the pending issues. The Attorney General’s Office of the National Treasury (PGFN) edited ordinance establishing a special installment for these municipalities.
Debts overdue until October 31 of last year may be divided into up to 240 months (20 years). They must be enrolled in the Active Debt of the Union until joining the installment plan. Debts related to accessory obligations and contributions levied on the thirteenth salary of municipal civil servants may also be renegotiated.
According to the decree, published today (16) in the Federal Official Gazette, debts in installments will have a 40% discount on fines (delayed, ex officio and isolated), 80% on late payment interest, 40% on charges legal fees and 25% on attorney fees.
The payment of installments may occur through retentions in the transfers of the Municipalities Participation Fund, which allocates part of the collection of the Income Tax, the Tax on Industrialized Products and the Tax on the Circulation of Goods and Services to the municipalities. The discounted amounts will be passed on to the Union.
Under current legislation, municipalities that are unable to establish their own Social Security system for municipal employees contribute to the INSS. Normally, civil servants in smaller municipalities are subject to this regime.
