Annual DCTFWeb: statement must be filed by December 20

At the end of this year, taxpayers should be mindful of the deadline for filing the Annual DCTFWeb. This version of the statement must be submitted by December 20.

What is the Annual DCTFWeb?

Also called “the 13th Salary DCTFWeb”, the Annual DCTFWeb is used to declare social security contributions levied on the Christmas Bonus.

How is the Annual DCTFWeb generated?

The statement is generated by filing the eSocial pertaining to the Christmas Bonus (also known in Brazil as the 13th Salary). Statements of this type do not retrieve information from the EFD-Reinf, as is the case with the Monthly DCTFWeb.

Upon making the submission to the eSocial system, the Annual DCTFWeb is automatically created at the "in progress" stage.

Taxpayers should amend the statement to include information related to enforceable credits or to proceed with wire transfers. Once the statement has been filed, the corresponding payment form can be issued.

What to do in case of no-turnover?

The Annual DCTFWeb should only be submitted if there are amounts to be declared. No-turnover statements should not be filed.

Who is required to file the Annual DCTFWeb?

The DCTFWeb is an ancillary obligation that falls upon a large number of taxpayers, including:

1) Private-law legal entities at large as well as those legally equivalent to companies;

2) Budget management departments;

3) Consortiums if, on their own behalf, they:

• hire a worker under the General Social Security System (“Regime Geral da Previdência Social” - RGPS);
• purchase farm products from individual farmers;
• sponsor a professional soccer club; or
• hire a company to render services subject to tax withholding;

4) Unincorporated joint ventures (“Sociedades em Conta de Participação“ - SCP);

5) Administrative bodies;

6) Official international or foreign authorities operating in Brazil that hire workers under the General Social Security System (RGPS);

7) Sole Micro-Entrepreneurs, if they:

• hire a worker under the General Social Security System (RGPS);
• purchase farm products from individual farmers;
• sponsor a professional soccer club; or
• hire a company to render services subject to tax withholding;

8) Individual farmers, if they:

• hire a worker under the General Social Security System (RGPS); or
• sell their goods to a buyer abroad, to another individual farmer, to an individual under the Special Social Security System, or to an individual consumer, in retail;

9) Individuals who purchase farm products from an individual farmer or from an individual under the Special Social Security System for retail sale to individual consumers;

10) other legal entities lawfully required to pay social security contributions.

Are there any sanctions?

There is a late filing penalty for taxpayers who fail to submit their statements or miss the deadline. A fine amounting to 2% per missed calendar month or fraction thereof shall be levied on the amount of the contributions reported in the DCTFWeb, even if fully paid, in accordance with the corresponding minimum fine and limited to 20% of the total amount.

It is worth noting that failure to file the DCTFWeb also prevents taxpayers from obtaining a Debt Clearance Certificate (CND).

Fine for inaccuracies or omissions: filing the DCTFWeb with inaccuracies or omissions warrants a fine amounting to BRL 20 for every ten pieces of information that have been omitted or incorrectly reported, in accordance with the corresponding minimum fine.

Minimum fine: the minimum fine for late submission is BRL 200 in case of omission of a statement without taxable events, and BRL 500 in other cases.

Tax optimization and compliance

DPC has departments dedicated to assisting individuals and companies with the compliance of their routine tax obligations and the achievement of their strategic objectives. You can rely on this support:  dpc@dpc.com.br.