Brazil’s RFB Normative Instruction n°. 2082/2022 was published on 19 May 2022, establishing a deadline extension for delivery of Digital Accounting Bookkeeping (ECD) and Tax Accounting Bookkeeping (ECF) for calendar year 2021 – fiscal year 2022.
The original deadline for ECD/2022 was 31 May 2022 – now extended to 30 June 2022.
The original deadline for ECF/2022 was 29 July 2022 – now extended to 31 August 2022.
The deadline extension applies to both normal books and special events (where a special event is a total or partial spin-off, incorporation or merger), with the following deadlines being observed:
- For ECD:
- If the special event takes place between January and May 2022, the submission deadline is 30 June 2022;
- If the special event occurs between June and December 2022, the delivery deadline is the month following the event.
- For ECF:
- If the special event takes place between January and May 2022, the submission deadline is 31 August 2022;
- If the special event takes place between June and December 2022, the delivery deadline is the third month following the event.
Brazil’s Public Digital Bookkeeping System (SPED) was implemented in 2009 and the cross-checking of information by tax authorities has become faster, more advanced, and more accurate each year.
ECD and ECF both require a large amount of information from the taxpayer and that information is also cross-checked with other ancillary obligations, such as DCTF (monthly tax return), DIRF (withholding income tax) and EFD Contribuições (social contributions). The cross-checking of information between the Digital Accounting Bookkeeping (ECD) and the Tax Accounting Bookkeeping (ECF), therefore, requires particular attention from taxpayers.
While the program aims to avoid evasion of taxes, it sometimes spontaneously alerts taxpayers to review and correct the information. The main resource for tax enforcement actions in the last few years has been the use of technology applied to cross-checking of information.
The Brazilian tax environment is extremely dynamic and complex. It is vital for companies to be aware of regime changes in order to fully exploit new opportunities and mitigate new impacts/risks to their activities. Auxadi is very much aware of the importance of delivering high quality tax services and we strive to maintain well-coordinated accounting and tax routines to ensure our clients are in full compliance.
If you have any questions or queries about this, or any other aspect of Brazil’s tax or regulatory regimes, contact our team of experts in São Paulo.