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EFD-Reinf: Important issues in adaptation to the system
The Tax Digital Bookkeeping and Other Tax Information (EFD-Reinf) is a module of the Public Digital Bookkeeping System (Sped), complementary to the System for Tax, Social Security, and Labor Obligations Digital Bookkeeping (eSocial), already in force.
Individuals and legal entities focused on contracting services and withholding taxes should use EFD-Reinf. The use of this new system, together with eSocial, will gradually promote the replacement of information stated through Withholding Income Tax Return (DIRF), FGTS Payment Form, and Information to the Social Security (GFIP), Annual Social Information Report (RAIS) and General Register of Employed and Unemployed Persons (CAGED).
EFD-Reinf as a tax control tool
Since EFD-Reinf is an obligation that requires a routine redesign, as previously discussed, working on its deployment may challenge because it involves consolidating information from service providers and contractors at the same platform. Not to mention the close relationship with eSocial, which requires an integrated view of miscellaneous information.
On the other hand, this may be an opportunity to develop routines for integration of accounting and tax processes and a greater company’s tax control. It is time to build a new culture in services hiring and sale, to review the calculation processes of withholding taxes and invoices issuance, and to review how to make the accounting records write-off.
Adequacy to the system
There are many adjustments required in EFD-Reinf deployment. Given this, Domingues e Pinho Contadores drawn up the following procedures list to your company have no surprises in transition.
1. Know your company
Study the routines that will be involved with EFD-Reinf, not forgetting that these are complementary to eSocial. It is very important to know all the related processes and the involved departments that should be, and, from this, draw-up the work methodology.
2. Prepare people
Considering the companies will have a great work in EFD-Reinf deployment and then in the performance of the required routines, it is necessary to make the involved managers and auxiliaries aware and prepared.
A critical, organized, and respect to deadlines is extremely important to perform the tasks. Investing in training and empowerment may be a great option.
Domingues e Pinho has been promoting trainings to with its clients, guiding them on EFD-Reinf and its influences on the routine and the information traffic.
3. Review the processes
The whole routine involved must be suited to the EFD-Reinf legislation. Checking suppliers and clients’ records to validate CNPJ data and to identify the legal nature in which they are framed is relevant.
In addition, we indicate the analysis of the events the company should send and classify them per type of provided service and which of them are related to the taxes withholding and payment.
Since many areas of the company should be involved with EFD-Reinf, it must review or create processes between the departments (tax, financial, commercial, etc.) for uniformity and integration, not forgetting the IT staff role in the system deployment and the adoption of support tools.
Important: Invoices should be processed, mainly in purchased services, in order to make the bookkeeping and analysis of withheld taxes more expedite.
4. Follow the taxes payment
The team involved with the taxes area should validate whether they are being paid in accordance with legislation. It is noteworthy that the invoice must be issued in the same accrual of the rendered service. Moreover, once EFD-Reinf and eSocial are filed, these information will be at DCTF-Web database, from which payment slips will be generated.
The services the company subject to EFD-Reinf rules provides must be evaluated and if adjustments in invoices issuance, taxes withholding and description of such services are required.
5. Have a proper management system
The investment in a system is crucial for company for registration and control information, taxes payment and transmission of required data to EFD-Reinf system, as there is no free system the taxpayers may use. However, it is very important to confirm if such system is properly set-up to meet the requirements.
6. Hire a tax consultancy
Outsourcing information to EFD-Reinf and other taxes obligations may be a great solution to the complexity of tax legislation and the data cross-referencing Federal Revenue carries out.
Important: The integration between eSocial and EFD-Reinf modules obliges companies to pay close attention. In case of any problem and the information is not generated, the company will not be able to pay the taxes nor benefit from tax credits. In addition, it may be exposed to payment of penalties and notification, in accordance to the established in legislation.
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