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05 January 2025

São Paulo Launches 2025 IPVA Payment With Discounts

Vehicle owners can benefit from early payments and avoid penalties with new IPVA tax rules.

Vehicle owners in São Paulo can now begin paying the 2025 IPVA (Imposto sobre a Propriedade de Veículos Automotores) and benefit from discounts and various payment options. With substantial changes introduced this year, contributions are encouraged early, particularly for those who opt for upfront payment.

Motorists who pay the tax fully within January will enjoy a 3% discount. Those choosing to pay via installment must make their first payment during the same month. For 2025, the payment calendar mirrors the last digit of the vehicle's plate, with deadlines slated as follows: January 13 for vehicles ending in 1, January 14 for those ending in 2, and continuing until January 24 for vehicles ending with 0.

Payment methods have diversified, allowing transactions through bank apps, agencies, and ATMs by entering the vehicle's Renavam (Registro Nacional de Veículo Automotor) number. Alternatively, motorists can also make payments using Pix technology via QR code, facilitating immediate and convenient transactions.

Late payments attract significant penalties. A daily fine of 0.33% accrues, increasing after two months to 20% of the tax value owed. Failure to pay can lead to debt registration and restrictions on vehicle licensing, making timely compliance necessary.

The São Paulo State Finance Department anticipates higher revenue from this year's IPVA, forecasting collections of R$ 30.4 billion, even with the tax base shrinking slightly with 330,622 vehicles registered for duty, compared to last year’s 341,042. This projected revenue increase is attributed to enhanced compliance efforts and the financial stability of many vehicle owners.

While the state expects to gain approximately R$ 524.1 million from the tax, local municipalities, like Sorocaba, are anticipated to receive about R$ 298 million. Funds from the IPVA support public expenditure, which is particularly important for community and educational services.

Vehicle owners are reminded to consult the São Paulo Finance Department's website to check the exact amount due, which requires the input of their vehicle's registration details. Starting from January 2, owners can also pay for their vehicle's licensing, set at R$ 167.74, but this requires no outstanding debts from 2024.

Additional changes for the upcoming years include new restrictions on IPVA exemptions for hybrid vehicles due to recent policy revisions. According to Portaria SRE 94/2024, only specific models such as the Toyota Corolla Hybrid and Corolla Cross Hybrid will qualify for any exemptions. The strict requirements prioritize hybrid cars with technical specifications on electric motors and limitations on pricing.

Such changes mean many popular green vehicles will not qualify for tax benefits moving forward. Despite the push for sustainability, high costs and stringent criteria may deter potential buyers of hybrid vehicles not meeting the set standards. The exemption policy will only apply from 2025 to 2026, after which tax rates for these vehicles will gradually increase.

Overall, São Paulo's vehicle owners face both opportunities and challenges with these latest IPVA arrangements. The financial obligations require attention and timely action to avoid penalties, and new market dynamics will influence future vehicle purchases.

For thorough guidance, it’s recommended for vehicle owners to keep themselves well-informed via official channels and to remain vigilant about their payment timelines. This proactive approach to management of the IPVA will help mitigate financial risks and contribute positively to the state's economic growth.