The "Nos Conformes" Program may change the companies’ relationship with SEFAZ-SP

The Tax Compliance Stimulus Program - “Nos Conformes”, created on Sep-28-2018 by the Complementary Law 1,320, had its regulations published through Resolution SF 105 indicating how will be the gradual deployment of taxpayer classification system.

The “Nos Conformes” objective is to develop the relationship between São Paulo tax authorities and their taxpayers in a mutual trust environment, by encouraging taxpayers’ compliance, by means of granting counterparties to those who strictly comply with their tax obligations.

In order to deploy the program, ICMS taxpayers will be officially classified by the Finance Secretariat under "A+", "A", "B", "C", "D", "E" and "NC". (unclassified), being the classification from Income Auditors.

The criteria for classification are:

- Compliance: Tax liabilities due and unpaid related to ICMS;

- Adhesion: Adhesion between bookkeeping or statement and the tax documents issued or received by the taxpayer; and

- Suppliers: Profile of taxpayer’s suppliers as framework in the same category and the same classification criteria laid down in this supplementary law.

Applying the classification criteria will only consider the generating facts that occurred as of Apr-07-2018, considered together all the taxpayer’s establishments.

Note: SF Resolution 105 indicates that the classification will only cover ICMS taxpayers included in the Periodic Determination Regime (Regime Periódico de Apuração - “APR”), only considering the criteria related to compliance and adhesion (items "i" and "ii").

During the period covered by this resolution (Oct -17-2018 to Feb-28-2019), the classification intended to the taxpayer will not be available for public consultation, and taxpayers will not be able to use the anticipated counterparts. However, during this period, the companies will be able to consult their note given by SEFAZ-SP.

We believe that this SEFAZ-SP initiative will support the taxpayers who fulfill their obligations with the tax authorities and that well-known companies will be able to boost their business in the market, since this consultation will be publicly available.