Schedule of tax obligations for the second half-year still reserves some news

After a first half-year with many tax obligations, news and adjustments, it is time to prepare to meet the schedule for the second six-month’s period. The period promises to be busy due to new phases and Public Digital Bookkeeping System (Sped) modules deadlines, in addition, of course, to the fulfillment of other obligations that already monthly accompany the companies.

See what is coming:

eSocial - Digital Bookkeeping System for Tax, Social Security and Labor Obligations

The system is one of Sped modules and integrates the data filed to Social Security, CEF, Federal Revenue, and Ministry of Labor.

eSocial is a digital platform to record 15 tax, labor and social security obligations related to employees. The difficulty is due to the amount of data that should be updated at the deployment stage and even the lack of structure for some companies feed the system bases.

1. Companies with annual revenue greater than BRL 78 million

Throughout the first half of 2018, businesses earning revenues greater than BRL 78 million, per year, were already required to join eSocial, registering the employer, workers and payrolls data at the system.

As of July, this group of companies is going through another stage, in which it must replace GFIP (Information to Social Security) and cross-compensation.

Social security contributions should be paid through a Federal Revenue Payment Slip (Darf), generated at the DCTFWeb (Statement of Federal Taxes and Social Security and Other Entities and Funds).

2. Private companies that have annual revenue of less than BRL 78 million (and that are not classified as micro and small companies or individual micro entrepreneurs)

As of July, this group of companies must join the eSocial. Firstly, it is necessary to enter the employer data and tables. Information about workers, payroll, and health and safety, should be included later as it progresses (find below). However, it is important already begin internally adaptation work to the next moment.

3. Micro and small companies - with annual revenue up to BRL 4.8 million - and Individual Micro entrepreneurs (MEIs) that have employees

On Jul-11-2018, after the eSocial Steering Committee Resolution 4, this group of companies, previously required to start registering information from July 2018, now have the option to join the system from November 2018.

The measure is an option offered to this group of employers, who, in case of interest, can join eSocial right away (July 16).

In November, these companies, when entering the system, should provide information, cumulatively, on the three initial phases of the schedule including the employer's registration and tables, the inclusion of employee data and their relationship with companies (non-recurring events) and payroll information.

Review below the eSocial deployment schedule, in which the deadlines to be met in the second half of 2018:

ESocial deployment schedule	Large companies*	Other companies **	Public agencies
Employer registration and tables	Jan/2018	Jul/2018	Jan/2019
Worker’s data and his/her relationship with the companies (non-periodic events)	Mar/2018	Sep/2018	Mar/2019
Payroll	May/2018	Nov/2018***	May 2019
Replacement of GFIP (Information to Social Security) and cross-compensation	Jul/2018	Jan/2019	Jul/2019
Occupational health and safety data	Jan/2019	Jan/2019	Jul/2019

*Companies with gross revenues greater than BRL 78 million.

**Private companies with annual revenues less than BRL 78 million (that are not classified as micro and small companies or individual micro entrepreneurs).

***Mandatory deadline for micro and small companies and individual micro entrepreneurs with employees joining the eSocial.

ECF - Accounting-Tax Bookkeeping

ECF, one of the other Sped's accessory obligations, has a filing deadline for the 2017 calendar year on July 31, 2018.

The filing deadline is different only in cases of extinction, total and partial spin-off, merger, or incorporation, when the operation occurred between May and December. In these situations, the obligation must be fulfilled by the last business day of the third month following the event. If any of such operation is carried out between January and April, July remains as the deadline month to file the statement.

All legal entities, including immune and exempt, whether taxed by actual, arbitrated or presumed profit must fill the ECF and meet the deadline. Only those opting for the Simples Nacional, public agencies, municipalities, public foundations and inactive legal entities who have not performed any operational, non-operational, financial, or financial activity, including application in the financial or capital markets, in the calendar year are not required.

Filing the information after deadline or presenting the statement with errors or omissions may generate penalties varying according to the tax regime adopted by the company.

EFD-Reinf: Digital Tax Bookkeeping of Withholdings and Other Tax Information

EFD Reinf is a Sped module focused on hiring services and withholding of taxes that falls on individuals and legal entities. See herewho should file it.

The use of this system, together with eSocial, will gradually promote the substitution of the information filed through the Withholding Income Tax Return (DIRF), FGTS and Social Security Information (GFIP), the Annual Social Information Report (RAIS) and the General Register of Employed and Unemployed Persons (CAGED).

Since May 2018, companies earning gross revenues greater than BRL 78 million per year are already required to file EFD-Reinf, but as of November, the obligation extends to other private companies, including Simples, MEI and individuals (who have employees).

Compliance with obligations requires global attention to the Sped modules

With the information integrated at Sped's environment, taxpayers are more exposed to ever-more agile and accurate electronic audit processes. A minimal flaw in the preparation of statements may lead to harsh penalties.

In addition to complying with the deadlines and correct fulfillment with each individual obligation, companies should be aware of the information stated in other obligations to eliminate the risk of inconsistencies in the transmitted data, detectable from the crossover the information mesh.

In order to fulfill all obligations in the proper deadline and with the required level of quality, keep a preventive routine and a strategy to carry out a work without a pending is essential. In this sense, companies should internally organize themselves and have specialized advice whenever possible.

Updated in 07/11/2018.