On 12/30/2013, State Law No. 10.161 was published in the Official Gazette. The Law, approved by the Governor of the State of Espírito Santo, provides for the Tax Amnesty Program that enables the payment of tax debts by waiving or reducing penalties and interest related to the VAT Tax on Distribution of Goods and Services – ICMS – debts.

The Tax Amnesty Program applies to all debts whose triggering events occurred before June 30, 2013, regardless of whether or not having been assessed or enrolled as collectible debts, including those which are subject to ongoing tax foreclosures or other installment payment programs.

The payment of fines and interest arising from default in payment of the relevant tax liabilities may be made with discounts that range from 50% to 90%.

The period to apply for the Tax Amnesty Program is from February 3 to March 31, 2014. Confirmation of the acceptance of the debt in the Program is at the moment of payment of the first or single installment.

We remain at your entire disposal to provide any clarification that might be required.

For more information regarding this Legal Update, please contact Ivan Tauil or Carolina M. Bottino.