Keywords: Brazil, Digital Accounting Bookkeeping, Tax Accounting Bookkeeping,
On December 3rd, 2015, Rules No. 1,594/2015 and 1,595/2015, which amended the rules relating to Digital Accounting Bookkeeping (ECD) and Tax Accounting Bookkeeping (ECF), were published in the Official Gazette.
In relation to the applicable deadlines, the period for the filing of ECDs was anticipated to the last business day of May and the period for filing ECFs was anticipated to the last business day of June, both of the calendar year after the year to which the returns relate. In case of termination, partial spin-off, merger or acquisition of companies, the deadline for filing the ECD was changed to the last business day of May for transactions that occurred between January and April of the same calendar year, whereas the ECF relating to these events should be filed by the last business day of June for transactions that occurred between January and May of the same calendar year.
In relation to legal entities required to file the ECD, we highlight that entities that used to be immune or exempted from maintaining their own bookkeeping and legal entities taxed on the basis of the estimated profit method that did not use the exemption to maintain their bookkeeping because they maintained a Cash Book contemplating all financial transactions have been included in the list of persons that have to file ECDs. On the other hand, inactive legal entities have been exempted from submitting ECDs.
In addition, the obligation to file ECDs for immune and exempted legal entities obligated to submit a Digital Tax Bookkeeping for Contributions (EFD-Contributions) and Special Partnerships (Sociedades em Conta de Participação) only relates to the accounting facts that occur until December 31st, 2015.
As far as the ECF is concerned, legal entities that have elected to be taxed on the basis of the estimated profit method that do not keep their bookkeeping because they keep a Cash Book with all financial transactions and whose gross revenues e in the year are greater than BRL 1,200,000.00 (one million and two thousand Brazilian Reals) – or an amount proportionate to the applicable period – will have to submit a Statement of the Cash Book from calendar year 2016 onwards.
Originally published 8 December 2015
Visit us at Tauil & Chequer
Founded in 2001, Tauil & Chequer Advogados is a full service law firm with approximately 90 lawyers and offices in Rio de Janeiro, São Paulo and Vitória. T&C represents local and international businesses on their domestic and cross-border activities and offers clients the full range of legal services including: corporate and M&A; debt and equity capital markets; banking and finance; employment and benefits; environmental; intellectual property; litigation and dispute resolution; restructuring, bankruptcy and insolvency; tax; and real estate. The firm has a particularly strong and longstanding presence in the energy, oil and gas and infrastructure industries as well as with pension and investment funds. In December 2009, T&C entered into an agreement to operate in association with Mayer Brown LLP and become "Tauil & Chequer Advogados in association with Mayer Brown LLP."
© Copyright 2015. Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. All rights reserved.
This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.