Normative Instruction No. 2017 of March 30, 2021, amended Normative Instruction No. 1891 of 2019, which provides for the installments referred to in Law No. 10,522 of 2002.

The aforementioned Law was amended by Law 14.112 of 2020, to update the legislation regarding judicial reorganization, extrajudicial reorganization, and bankruptcy of entrepreneurs and business entities.

Among the articles that underwent changes is Article 17 of Normative Instruction No. 1891 of 2019, which previously stipulated an 84-month installment payment period for companies undergoing judicial reorganization, now extended to 120 months. It also reduced the initial value of installments through changes in the calculation system and established a new installment payment modality that allows for the inclusion of taxes subject to withholding at source and the IOF (Tax on Financial Operations) not collected by the National Treasury.

Article 5 of the same Normative Instruction 1891 was also amended with the aim of readjusting the procedure for registering social security contribution debts in the Confessed Debt Assessment (LDC).

Specifically, according to article 464 of Normative Instruction No. 971/09, the LDC is the document establishing credit related to contributions covered by articles 2 and 3 of Law No. 11,457/07, not declared in GFIP, resulting from a debt acknowledgment by the taxpayer.

Furthermore, this registration must be done by submitting an LDC application, according to the model in Annex IV, which was included in Normative Instruction No. 1891 of 2019.

Thus, the objective of the aforementioned changes is to make it easier for entrepreneurs and business entities undergoing judicial reorganization to access installment payment plans for tax debts.

Article by Adriana Bettamio Tesser, Lawyer, graduated in Law in  2006 by FMU/SP.
Specialist in Customs Law, Contracts, Family and Inheritance Law / Dispute Resolution. OAB/SP No. 257.277