Brazil - Apply for Transaction Agreement by Zero Litigation Program (PRLF)

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Procedure

Apply In-Person:

1. To Apply for a Transaction Agreement by Zero Litigation Program (PRLF), the applicant has to approach the Ministry of Economy link
2. Prepare a formal request for participation in the PRLF, outlining the details of the tax dispute, including the specific tax issue, outstanding amounts, and the tax periods involved.
3. An application form will be provided to the applicant by the concerned officer.
4. The applicant has to fill in all the necessary details in the application form. (Incomplete applications are not accepted)
5. Make sure that the applicant has attached all the necessary documents that are mentioned in the “Required Documents” section of this page.
6. The applicant has to attach the photocopies of the required documents along with the application form while submitting.
7. Submit all the documents with the completed form to the concerned officer.
8. The applicant has to pay the prescribed fee as requested by the authority.
9. After receiving the application, the concerned authority will check the submitted application and document set. If all are in place, the application will be accepted.
10. Then the application will be processed further. They will assess the reasons for seeking a mineral and verify the provided documentation.
11. Once the process gets completed, the applicant gets a call from the office regarding the application.
12. If the request is accepted, the applicant will enter into negotiations with the tax authorities to determine the terms of the transaction agreement. This may include the amount to be paid, instalment plans, and any applicable reductions or waivers of penalties and interest.
13. Once the terms are agreed upon, formalize the transaction agreement with the tax authorities. This typically involves signing a legally binding document outlining the terms of the settlement.
14. The applicant needs to fulfil the obligations under the agreement by making the agreed-upon payments within the specified timeframes.
15. Comply with all the terms and conditions of the transaction agreement to ensure the closure of the tax dispute. This may include submitting additional documentation and fulfilling any other requirements outlined in the agreement.
16. Maintain thorough records of all communications, agreements, and payments related to the PRLF settlement.
17. The tax authorities will review and verify the compliance with the agreement. Once verified, the tax dispute is considered resolved.
18. This entire process can be completed within 20 days or as per the timeline advised by the respective department authority.

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Required Documents

• Application form
• Formal Request Letter
• Documentation Supporting the Dispute
• Financial Statements and Tax Returns
• Financial Capacity Proof
• Calculation of Proposed Settlement Amount
• Legal and Tax Consultation Reports
• Any other documents (If required)

Office Locations & Contacts

Ministry of Economy
Esplanada dos Ministérios, Block F, Annex Building,
Wing A, Ground Floor,
CEP 70059-900. Brasilia DF
Contact link

Eligibility

To be eligible for the PRLF, businesses must meet the following requirements:

• Have a tax debt of at least R$1 million.
• Have been in business for at least five years.
• Have a good financial standing.
• Be willing to settle their tax debt in full.

Fees

• The applicant has to pay the prescribed fee as requested by the authority.

Validity

Explain the time until which the certificate/document is valid.
e.g. Birth Certificate Valid Forever

Documents to Use

Please attach documents that can be used by people. e.g. links

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

• This entire process can be completed within 20 days or as per the timeline advised by the respective department authority.

Related Videos

Videos explaining the procedure or to fill the applications.
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites.
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver,
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Instructions

• Applicants must complete the application form before submitting it. Incomplete applications will not be accepted.
• Applicants must provide genuine information while applying for this procedure.

Required Information

• Name
• Surname
• Address
• ZIP code
• Mobile number
• Fax
• Email
• Nationality
• Education details
• Mailing address
• Other details
• Declaration
• Date
• Signature

Need for the Document

• The Transaction Agreement by Zero Litigation Program (PRLF) is a program offered by the Brazilian government to businesses that are willing to settle their tax debts with the Receita Federal do Brasil (RFB).
• The PRLF is a voluntary program, and businesses that participate are not required to admit any wrongdoing.

Information which might help

The PRLF offers businesses a number of benefits, including:

• A reduction in the amount of their tax debt.
• A waiver of interest and penalties.
• A payment plan that can be spread out over up to 120 months.
• The ability to avoid criminal prosecution.

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

Place some external links which might help.

Others

• The PRLF was created in 2022 as a way to help businesses that are struggling with tax debt. The program is open to businesses of all sizes, and it offers a number of benefits that can help businesses get back on their feet.