Surety Bond for Tax Enforcement (Execução Fiscal)
Guarantee the debt in a Brazilian tax-enforcement action with a surety bond — instead of depositing cash or having assets seized — suspending enforcement and freeing your working capital.
In a tax-enforcement action (execução fiscal), the debtor can guarantee the debt with a judicial surety bond (Law 6.830/80, art. 9, and Civil Procedure Code, art. 835, §2), with a 30% top-up, instead of depositing cash or having assets seized (penhora). The policy suspends enforcement, avoids attachment, and frees working capital.
Key facts
- Basis of acceptance: The Tax Enforcement Law (Law 6.830/80, art. 9) and Civil Procedure Code art. 835, §2 accept the surety bond as a court guarantee.
- 30% top-up: The policy must cover the debt plus 30%, per art. 835, §2, of the Civil Procedure Code.
- Avoids attachment (penhora): Replaces the cash deposit and asset seizure (real estate, vehicles, bank accounts), preserving the company's operations.
- Typical cost: Around 1% to 5% per year on the guaranteed amount, depending on risk and term.
- Suspends enforcement / allows CND: With the court secured, enforcement is suspended and the company can challenge the debt and obtain a clearance certificate (CPEN).
Cash deposit / attachment vs Surety bond
| Criterion | Cash deposit / attachment (penhora) | Surety bond |
|---|---|---|
| Ties up working capital | Yes, locks the full amount in court | No — cash stays free |
| Blocks assets | Yes, seizure of real estate, vehicles and accounts | Does not block the company's assets |
| Cost | Opportunity cost of idle cash | ~1% to 5% p.a. on the guaranteed amount |
| Acceptance (tax enforcement) | Accepted | Accepted (LEF art. 9 + CPC 835 §2) |
| Suspends enforcement | Yes, upon full deposit | Yes, with the court secured (+30%) |
What is a tax-enforcement action
A tax-enforcement action (execução fiscal) is the lawsuit through which the Public Treasury (federal, state, municipal, or agencies) collects debts entered in the active debt registry — unpaid taxes, fines, and other public claims. The procedure is governed by the Tax Enforcement Law (Law 6.830/80) and, subsidiarily, by the Civil Procedure Code.
Once the company is served, it must, as a rule, pay the debt or secure the court within five days. If it does not, enforcement moves on to asset seizure: cash in accounts (via Sisbajud), real estate, vehicles, and receivables can be blocked, compromising the company's cash and operations. Securing the court is what allows the debt to be challenged (through motions) without that blocking.
This is exactly where the surety bond comes in: instead of tying up cash or suffering asset seizure, the company files a policy that guarantees the debt to the court, keeping its assets and cash free while it challenges the claim.
Legal basis (LEF art. 9 + CPC 835 §2)
Article 9 of Law 6.830/80 (the Tax Enforcement Law, or LEF) lists the ways of guaranteeing a tax-enforcement action and, as amended, accepts the offer of a surety bond to guarantee the debt, alongside the cash deposit, the bank guarantee, and the nomination of assets for seizure.
Article 835, §2, of the Civil Procedure Code treats a bank guarantee and a judicial surety bond as equivalent to cash for replacing attachment and securing enforcement, provided the amount is no less than the debt plus 30%. This 30% top-up is what the policy must observe in a tax-enforcement action.
With the court secured by the policy, enforcement is suspended, the company can file motions, and — once the requirements are met — obtain a clearance certificate with negative effects (CPEN). The same logic supports the replacement of a judicial cash depositalready made with a policy, withdrawing the blocked amount subject to the court’s decision.
Cash / attachment vs surety bond
Guaranteeing a tax-enforcement action with a cash deposit requires taking the full debt amount out of the treasury and leaving it blocked in court, often for years, with no return to the business. Asset seizure is even more burdensome: real estate, vehicles, and accounts are constrained, directly affecting the company's productive capacity.
The surety bond solves this: the insurer guarantees the debt plus 30% to the court, and the company pays only an annual rate on the guaranteed amount — typically 1% to 5% per year. Working capital stays free and no asset is blocked. It is the same mechanism described under judicial surety bond for labor claims, now applied to the tax debt.
To size the benefit, it is worth comparing the policy cost with the opportunity cost of idle cash — the detailed comparison is in how much a surety bond costs. In almost every case with a significant debt, the policy is substantially cheaper than keeping the amount deposited.
How to take one out
The process starts with the company's (principal's) risk analysis: corporate documents, financial statements, and case details (number, court, debt amount, and the 30% top-up required by the Civil Procedure Code). Based on this, the insurer sets the rate and issues the policy.
The policy is issued with the tax-enforcement court as beneficiary and a guaranteed amount equal to the debt plus 30%. The company then files the surety bond in the record, within the deadline to secure the court, and requests suspension of enforcement and the release of any seizures already made.
ERGO handles the entire quotation and issuance process, advising on the guaranteed amount, the 30% top-up, and the term, with issuance usually within 24 to 72 hours. Request a quote or talk to a specialist to size the guarantee for your tax-enforcement action.
Frequently asked questions
Does the Treasury accept a surety bond in tax enforcement?
Yes. Article 9 of Law 6.830/80 (the Tax Enforcement Law) accepts the surety bond as a way of guaranteeing a tax-enforcement action, and art. 835, §2, of the Civil Procedure Code treats it as equivalent to cash for replacing attachment, provided the amount is no less than the debt plus 30%. The policy must meet the formal requirements (beneficiary, amount, and term).
Does the surety bond replace asset seizure (penhora)?
Yes. Once the policy guaranteeing the debt plus 30% is filed, you can ask the court to suspend enforcement and release seizures already made on real estate, vehicles, or accounts. The decision lies with the court, which checks whether the guarantee offered is sound and sufficient.
Can the company obtain a clearance certificate (CND)?
With the court secured and enforcement suspended, the company can obtain a clearance certificate with negative effects (CPEN), which has the same effects as a negative certificate (CND) for tenders, contracts, and credit operations while it challenges the debt.
Is the 30% top-up on the guaranteed amount required?
Yes. Article 835, §2, of the Civil Procedure Code requires the guarantee (bank guarantee or surety bond) to be no less than the debt plus 30%. A tax-enforcement policy is therefore issued covering the updated debt amount plus that 30% top-up.
How much does a surety bond for tax enforcement cost?
The typical cost is around 1% to 5% per year on the guaranteed amount, varying with the company's risk, the term, and the debt amount. It is generally far cheaper than keeping cash deposited or having assets seized, which create opportunity cost and constrain operations.
Does the surety bond suspend the tax enforcement?
Yes. Once the court is secured by the policy (debt + 30%), enforcement is suspended, allowing the company to file motions and challenge the debt without asset and cash blocking, provided the policy meets the guaranteed amount and a term compatible with the case.
Need to guarantee a tax-enforcement action without tying up your cash?
ERGO issues surety bonds for tax enforcement — guaranteeing the debt plus 30% and avoiding attachment — to preserve your working capital.