Special and Differential Economic and Tax Monitoring in 2018

The Brazil’s Federal Revenue, through the publication of RFB Ordinance 3.311/2017, established the criteria for indication of legal entities to be submitted to the differential and special economic tax monitoring in 2018.

Conditions for differentiated monitoring

In general, the differentiated monitoring to be carried out in the calendar year of 2018 will be indicated to legal entities:

a) whose annual gross revenue reported in the 2016 Accounting-Tax Bookkeeping (ECF) was greater than BRL 200,000,000.00;

b) whose debts reported in the Federal Tax Credits and Credits Statement (DCTF) for 2016 were greater than BRL 25,000,000.00;

c) whose salary mass reported in the Payment Slips for Service Length and Social Security Guarantee Fund Information (GFIP) for 2016 was greater than BRL 65,000,000.00;

d) whose debts reported in GFIP for 2016 were greater than BRL 25,000,000.00; or

e) from total or partial spin-off, merger and merger, occurring up to two years prior to the monitoring object, whose success of which has been established in Article 7 of RFB Ordinance 641/2015.

Conditions for special monitoring

In turn, the special monitoring to be carried out in 2018 will affect legal entities whose:

a) annual gross revenue reported in the 2016 Accounting-Tax Bookkeeping (ECF) was greater than BRL 1,800,000,000.00;

b) debts reported in the Federal Tax Credits and Credits Statement (DCTF) for 2016 were greater than BRL 200,000,000.00;

c) salary mass reported in the Payment Slips for Service Length and Social Security Guarantee Fund Information (GFIP) for 2016 was greater than BRL 200,000,000.00; or

d) debts reported in GFIP for 2016 were greater than BRL 200,000,000.00.

Continuity in the framework

After the differentiated or special monitoring period, and in the absence of a new disciplining rule, the mentioned taxpayers will remain in the same situation in the following years.

Validity

The RFB Ordinance 3.311/2017 will be effective from Jan-01-2018.