Tax offsets and refunds: from tax review to PER/DCOMP

Tax reviewing helps to get tax behavior back on track and provides greater security for procedures requested via PER/DCOMP

By Cristiano Gonçalves

Procedures for requesting refunds, reimbursements and offsets are increasingly used by companies to recover amounts overpaid in taxes. But in order to attain this goal, there is a certain path to follow, which starts with a tax review and ends with an administrative procedure filed through PER/DCOMP.

It is quite common for taxpayers to find themselves scratching their heads when it comes to tax collection, leading them to pay more than what is effectively due. However, this issue can be avoided with a corrective and preventive work: tax reviewing.

Through this analysis, an assessment is made to check the existence of tax credits, which then serves as a basis for taxpayers to file a request for a tax refund, reimbursement, or offset.

Why start with a tax review?

A tax review identifies the company's tax behavior, pointing out which practices are suitable and which can be improved upon for better business performance. The process is thorough and comprehensive, so it is a good starting point.

The analysis provides an insight for developing tax strategies that meet the company's goals. This includes checking its financial and operational structure while helping to identify and counter possible tax risks, avoiding the waste of resources that could be used for business expansion.

Check out other benefits of tax reviewing below:

• Pointing out possibilities and opportunities for tax credit recovery;
• Indicating the most favorable tax arrangement;
• Identifying if and when tax incentives or benefits are applicable;
• Anticipating flaws that could result in fines and sanctions if left uncorrected.

The process is quite thorough and can be carried out to collect information at the local, state and federal levels for the previous five years, which is the expiration period for taxes and ancillary obligations. Therefore, five years is the deadline for requesting tax refunds, reimbursements and offsets.

Read more: What can tax review do for your company?

From tax reviewing to credit recovery via PER/DCOMP

At the federal level, taxes and contributions administered by the Federal Revenue Service can be subject to requests for refunds and reimbursements, as well as offset reports. In order to do this, an administrative procedure must be filed via PER/DCOMP or PER/DCOMP Web.

PER/DCOMP is a software downloadable from the Federal Revenue Service website. PER/DCOMP Web is its online version and a common option used at the e-CAC system for the direct preparation of requests for refunds, reimbursements and offsets. Both are currently active.

It should be noted that on PER/DCOMP Web it is not yet possible to file requests pertaining to refunds of IPI (Tax on Manufactured Products) or Reintegra credit details (Special Tax Reinstatement Arrangement for Exporting Companies). As of today, these options are only available through the PER/DCOMP software.

One should keep in mind that just pointing out recoverable tax credits is not enough. It is necessary to provide evidence for the existence of those credits, which should be recorded in accordance with tax regulations.

In some cases, it is also necessary to rectify tax statements and related ancillary obligations before an administrative request can be filed.

Tax reviewing provides security to companies, as the process accurately pinpoints when taxes were collected unduly, doubled or overpaid during the assessed period. With this information, it is easier for taxpayers to get organized to fulfil the corroborative requirements.

Then there is “cross tax offsetting”, which, since September 2018, has enabled tax credits to be offset against social security debts and vice-versa. In this case, tax offsetting is restricted to debits and credits related to the calculation period following the use of the eSocial system by the taxpayer.

Check out where good opportunities for credit recovery may be found:

Simples Nacional (Simplified taxation system for small businesses)	PIS and Cofins credits on single-phase products.
Actual taxable Income and Presumed Profit methods	Net and enforceable credits: those which have not been used by the client at a given moment and whose utilization is permitted by law.
	Tax on Manufactured Products - IPI credits: manufacturing companies are entitled to credits on inputs.
	Reintegra: PIS and Cofins credits on exports.
	Unduly or overpaid IRPJ and CSLL taxes.
	Non-cumulative PIS and Cofins: credits on inputs, assets, costs and expenses.
	Exclusion of ICMS from the PIS and Cofins tax bases.
	Unduly or overpaid DCTFWeb.

It is worth emphasizing the importance of counting on specialists for performing and possibly rectifying calculations of ancillary obligations, as errors may result in fines up to at least 50% on debts unduly offset.

Focus on tax opportunities

Focused on supporting clients in their search for efficiency and better results, Domingues e Pinho Contadores performs tax reviews, in-depth analyses of tax processes, credit assessments, necessary rectifications, and requests for tax offsets and refunds via PER/DCOMP or PER/DCOMP Web. Count on our strategic and operational support: dpc@dpc.com.br.