Brazil’s Federal Revenue Service and Attorney General’s Office of the National Treasury, PGFN, published Settlement Notice 5/2026 on October 5, opening a new resolution route for tax disputes involving a specified type of customs fine. It concerns administrative or judicial controversies over the application and limits of fines that substitute for forfeiture penalties. The fines relate to cases in which imported goods could not be seized because of fraudulent interposition of third parties or the use of another party’s name. The measure is not a general amnesty for all customs or tax debts.

Applications under the notice must be completed by 7 p.m. Brasília time on December 29, 2026. The authorities distinguish the filing channels by debt status. For tax credits that have not yet been enrolled as active debt, the taxpayer must open a digital process through the Federal Revenue Service’s services portal. For debts already enrolled, the procedure is handled by PGFN through the Regularize portal. If a case includes legal issues beyond those covered by the notice, the taxpayer may separate the discussions and include only the eligible debt in the settlement.

Depending on the payment option, the notice allows a discount of up to 65% of the total debt. The initial payment ranges from 10% to 30%, with the balance payable in as many as 60 instalments. Subject to the notice’s rules, tax-loss credits and negative CSLL tax-base credits may be used to amortise up to 30% of the balance after discounts. The notice also allows, under specified conditions, credits originating with a controlled or affiliated company. The maximum discount is not automatic for every applicant; actual terms depend on the chosen option and the eligibility conditions.

The settlement can end litigation on the covered issue and regularise the related debt on differentiated terms. Applicants must satisfy the notice’s requirements, including withdrawal from administrative or court disputes concerning the credits included in the transaction. Which tax credits qualify depends on the subject of the dispute and the status of the debt record, so the announcement does not mean every taxpayer can use identical terms. It also says fines related to the covered matter, including qualified fines, may be included if the notice’s conditions are met.

The announcement identifies the legal controversy by reference to Article 23 of Decree-Law 1,455/1976 and Article 33 of Law 11,488/2007. For the Federal Revenue filing channel, it specifies the portal menu “Meus Processos”, followed by “Solicitar Serviço Via Processo Digital”. These details identify the type of fine covered and the process for debts not yet registered for collection as active debt. The authorities describe Notice 5/2026 as part of their joint efforts to resolve tax litigation through consensual agreements.