The tax authority of São Paulo state published guidance with respect to implementation of a taxpayer compliance program for classifying taxpayers. The initiative is intended to increase tax collection without increasing the burden on taxpayers by strengthening relationships between taxpayers and the tax agency.
The taxpayer classification program is known as “Nos Conformes” and offers certain incentives and benefits for taxpayers.
The guidance published by SEFAZ (Secretaria de Estado de Fazenda) of São Paulo concerns the phased-in implementation of the program. SEFAZ / SP Resolution SF No. 105 (27 September 2018)—the guidance under the taxpayer classification program—is effective from 17 October 2018 until 28 February 2019.
In the first stage of the program, SEFAZ / SP will take into account certain information provided to the tax agency by the taxpayer. The taxpayer will be assigned a grade, in descending order from “A+” to “E.” Some taxpayers may be classified as “NC” (unclassified) in certain situations when the taxpayer does not have business operations for a specific period based on information in the Imposto sobre Circulação de Mercadorias e Serviços (ICMS) taxpayer registry of the state of São Paulo.
In assigning taxpayers a grade, the tax authorities will take into account information such as the taxpayer’s history of timely filing of tax documents (for instance, to receive a grade of A+, the taxpayer’s compliance must be 98%). During the testing phase of the program, there will be no public disclosure of a taxpayer’s classification.
Read an October 2018 report (Portuguese) prepared by the KPMG member firm in Brazil
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