The Government of the State of Rio Grande do Sul has launched a new phase of the Gaúcho Agreement, a state tax settlement program, expanding the possibilities for regularizing ICMS tax debts registered as active debt up to June 30, 2025, pursuant to Joint Settlement Notice No. 2, published in the Official State Gazette on December 23, 2025.

The initiative, led by the State Attorney General’s Office (PGE-RS) and the State Revenue Service, was established by Law No. 16,241/2024 and regulated by Decree No. 58,264/2025. It allows the negotiation of debts registered as active debt or under judicial dispute, with differentiated conditions according to the credit profile.

Eligible debts:
ICMS debts registered as active debt up to June 30, 2025;
Credits classified as unrecoverable or difficult to recover, including those directly or indirectly affected by the climate disaster of April and May 2024.

Main benefits:
Reduction of up to 75% (depending on the chosen modality) in fines and interest;
Possibility of full payment in a single installment or in up to 10 monthly installments;
Acceptance of state precatórios for offsetting purposes, according to the rules set forth in the notice;
Authorization to migrate previous installment plans to the new model, with automatic cancellation of prior agreements upon adhesion.

Adhesion modalities:
Modality 1: payment in cash, either in a single installment or in up to 10 monthly installments;
Modality 2: payment in cash plus precatórios, with presentation of the titles at the time of adhesion. Installment plan of up to 10 monthly installments, with the use of precatórios without discount (net value after deduction of income tax, social security, and IPE-Saúde).

Specific conditions:
(i) presentation of precatórios at the time of adhesion, requesting offsetting;
(ii) payment in cash of the initial installment by April 30, 2026, and the following three installments by July 27, 2026. After the offsetting of precatórios is processed, payment of the remaining six installments in cash.

Deadlines for adhesion and payments:
Electronic adhesion via the e-CAC Portal: from March 16, 2026, to April 15, 2026;
Payment of the single installment or the first installment by April 30, 2026.

Rules regarding precatórios:
The amount accepted for offsetting will be the net value after legal withholdings;
No discount applies;
Precatórios must be duly qualified and eligible for offsetting under the notice.

Despite the attractive reduction percentages, adhesion to the Gaúcho Agreement should be carefully evaluated by taxpayers, especially when it involves the migration of previous installment plans to the new model. Individual technical analysis is required to avoid assuming obligations that outweigh the benefits.

The team at Dupont Spiller e Fadanelli Advogados closely monitors tax regularization programs in the State of Rio Grande do Sul and remains available to provide further clarification on this matter.