RFB created new rules for ECD

Federal Revenue of Brazil (RFB) consolidated and amended the legislation dealing with Digital Accounting Bookkeeping (ECD), through Normative Instruction (NI) 1774/2017. NI 1774, valid from Jan-01-2018, brought the following main issues:

Deadline

The deadline to file ECD remains the last business day of May of the year following the calendar year to which the bookkeeping refers.

In cases of extinction, partial spin-off, total spin-off, merger, or incorporation of the legal entity, the ECD should be filed by the legal entity terminated, spun-off, merged, incorporated, or incorporating, observing the following deadlines:

- If the transaction is carried out between January and April, the ECD should be filed by the last working day of May of that year; and

- If the transaction is carried out between May and December, the ECD must be filed by the last working day of the month following the month of the event.

Authentication Proof

The ECD filing receipt, issued by Sped, without any other authentication, will prove authentication of journals and documents integrating ECD. This is because the authentication of corporate documents of any size through public systems, exempts from any other.

ME and EPP

Microenterprise (ME) or Small Business (EPP) that receives contribution of capital now are required to file ECD, as set forth in CGSN Resolution 131/2016.

Entrepreneur and business society

The entrepreneur and the business society who are not required to file ECD for tax purposes may do it, in an optional manner, in order to comply with the provisions in Article 1,179 of Law 10,406/2002.

ECD Program

The name of the program needed to file ECD has been changed from Validation and Signature Program (Programa Validador e Assinador - “PVA”) to Bookkeeping Generator Program (Programa Validador e Assinador - “PGE”).

Previously, editing records or fields within the program was not possible, just validating and signing the ECD file. Now it is possible to edit records and fields within the program, as well as preparing all the ECD to be transmitted.