RFB Ordinance No. 555/2025, published on July 1st, establishes new rules for the settlement of tax credits under administrative litigation. The regulation narrows the definition of litigation, requires continuous tax compliance, and limits the use of tax credits. Participation requires an irrevocable confession of debt and must be done via the e-CAC portal. Two public notices govern the conditions. The new rule tightens criteria, aims to reduce artificial disputes, and demands careful analysis of its impacts on taxpayers.

Key Points of the New Ordinance:

One of the most significant changes is the restriction of the definition of administrative tax litigation, which now explicitly requires that the dispute be formalized under Decree No. 70,235/1972. As a result, the new regulation clearly excludes cases based on Law No. 9,784/1999 or Decree No. 7,574/2011, preventing taxpayers from using generic administrative procedures to qualify for settlements.

Another important aspect is the requirement for continuous tax and registration compliance with both the Federal Revenue Service and the National Treasury Attorney’s Office, both at the time of joining and throughout the settlement period. Any debts arising after the agreement must be settled within 90 days, or the agreement will be automatically terminated. Termination results in the immediate enforceability of the remaining balance without any discounts, full reinstatement of legal charges, and exclusion from future settlements for two years.

The ordinance also revises the conditions for using tax loss and negative CSLL base credits. As a general rule, these credits may only be used to offset interest, fines, and legal charges. The only exception applies to companies under judicial recovery, which may also use these credits to reduce the principal amount of the debts included in the settlement. This limitation may significantly impact companies not in formal crisis that relied on these instruments for broader debt settlement.

Requirements for Participation:

Participation requires an irrevocable and irreversible confession of tax debts, as well as an express waiver of any pending administrative or judicial defenses. If the agreement is terminated, previously waived defenses cannot be reinstated, requiring taxpayers to carefully assess the feasibility and legal implications of joining the program.

The process must be completed exclusively through the e-CAC Portal, by accepting the specific conditions of each public notice. So far, two notices have been published:

• Notice No. 4/2025 covers small-value debts (up to 60 minimum wages), offering up to 50% discounts and installments of up to 55 months;
• Notice No. 5/2025 applies to larger debts (up to R$50 million), allowing up to 100% reduction of interest, fines, and legal charges, with a maximum 65% discount on the total debt and installments of up to 115 months, depending on the tax type.

Both notices are open for participation until 11:59 PM on October 31, 2025.

The new regulation also sets specific rules for offsetting and payment methods. In addition to regular installments, it allows the use of court-ordered government debt credits (precatórios), whether owned or acquired from third parties, and credits from final court decisions favorable to the taxpayer, provided they are undisputed and liquid. These offsets require prior approval by the Federal Revenue and compliance with applicable legal procedures.

Impacts of the New Ordinance:

Compared to the previous Ordinance No. 247/2022, the new regulation tightens participation conditions and reduces flexibility. The earlier ordinance did not define litigation as restrictively, allowing broader interpretations and less formal administrative procedures to qualify for settlements.

Thus, the new rule clearly aims to reduce artificial disputes and reinforce the extraordinary nature of the settlement mechanism, making it more selective and focused on resolving qualified tax disputes.

Finally, it is important to note that joining any settlement program implies a commitment to maintaining tax compliance, which may have reputational and liquidity risks if the taxpayer fails to meet the agreed conditions. Therefore, for companies and individuals with significant administrative disputes, the ordinance represents a valuable opportunity for regularization, but also requires careful analysis of the implications of definitive confession and future cash flow commitments.