Brazil: Compliance evaluation of taxpayers starts

State of São Paulo:  Taxpayers receive Compliance Grading

Based on the SEFAZ Resolution No. 105 the first phase of the new taxpayer evaluation program „Nos Conformes“ will be implemented in the state of São Paulo.

The goal of the program is to increase taxation and tax compliance without increasing the tax burden for the individual taxpayer. Every taxpayer will receive a grade based on his previous tax compliance, ranging from A+ until E, with A+ equaling a tax compliance rate of min. 98%. Taxpayers without a tax record will receive the grade “NC” for not-categorized.

The evaluation will be based on the tax information from the ICMS register. During the testing phase no grading results will be published.