Further Queries

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An overview by Demarest, Taxand Brazil

 

The Brazilian Federal Treasury’s Office of the General Counsel (PGFN) has recently issued Public Consultation Notice 13/2024, seeking feedback on a draft ordinance that proposes changes to the use of performance bonds for tax debts, replacing Ordinance 164/2014. Developed with input from key insurance bodies, the main changes include:

 

  • Standard policy templates to simplify the bond process.
  • Extending the minimum bond validity in tax enforcement cases from two to five years.
  • A co-insurance clause, clarifying no joint liability and specifying insurers’ coverage limits.
  • Stipulation that bonds or renewals must be submitted before expiry, but the 60-day advance submission rule is removed.
  • Non-payment losses will be confirmed 15 days after notification of a final court decision in tax enforcement cases.

Andre Alarcon, Camila Affonso Prado, Laura Pelegrini and Marcia Cicarelli from our Brazilian member firm Demarest have analysed this move in more detail here.

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Brazil | Insurance | Tax

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