Federal Revenue established a new accessory obligation to inform transactions settled in cash

RFB Normative Instruction 1,761/2017 published in the November 21, 2017 edition of the Official Gazette, establishes the obligation to file information on settled transactions in cash, totally or partially, from sale or assignment of goods or rights, services, rent or other operations, onerous or gratuitous.

DME

The information should be filed through the Statement of Settled Operations in Cash (Declaração de Operações Liquidadas com Moeda em Espécie - DME) via e-CAC from Jan-01-2018. The statements should be signed using the individual digital certificate or by the legal representative of the company, or by the duly registered attorney.

Compulsory requirement

Individuals or legal entities resident or domiciled in Brazil who have received in the reference month amounts in cash whose sum is equal to or higher than BRL 30,000.00, or the equivalent in another currency from transactions carried out with the same individual or legal entity, are required to file DME. The NI does not cover financial institutions and other institutions authorized by Central Bank of Brazil to operate.

For operations in foreign currency, the amount in Brazilian Reais should be calculated based on purchase price disclosed by the Central Bank of Brazil corresponding to the business day immediately prior to the receiving date. In transactions using foreign currency unpriced by the Central Bank, the amount shall be translated into US Dollars based on the value established by the originating country’s monetary authority, corresponding to the business day immediately prior to the receiving date, and then translate into Brazilian Reais.

Deadline

DME should be filed by the last working day of the month following the month of receipt of amounts in cash.

Among other information, the statement should bring the identification of who made the payment, the value of operation in Brazilian Reais and the amount that was settled in cash.

Penalties

Failure to file DME or after its deadline, or filed with inaccurate information or omissions subject the reporter to penalties, as follows:

I - Extemporaneous filing by:

a) entity in early activity, immune or exempt, opting for Simples Nacional, or in the last filed statement has assessed the Income Tax based on assumed profit: BRL 500.00 per month or fraction thereof;

b) other entity: BRL 1,500.00 per month or fraction thereof;

c) individual: BRL 100.00 per month or fraction thereof; and

II - by not filing or filling with inaccurate or incomplete information or omitting information if:

a) the reporting is a legal entity: 3% of the transaction value referred to the missing, inaccurate or incomplete information, not less than BRL 100.00; or

b) the reporting is an individual: 1.5% of the operation value that to omitted, inaccurate or incomplete information refers to.