DIRBI: Companies must submit tax benefits report by July 20

New ancillary obligation must be filed by legal entities that utilize tax credits arising from tax benefits

n June 18, the Brazilian Revenue Service issued RFB Normative Ruling No. 2,198/2024, regulating the submission of the Tax Incentives, Reliefs, Benefits and Exemptions Report (DIRBI).

This new ancillary obligation, which was established by the Federal Government at the beginning of the month through Provisional Presidential Decree No. 1,227, requires legal entities to report the tax benefits they have enjoyed since January 2024.

Companies should promptly adjust their routines to meet the recently-established rules, as the first submission must be made by July 20. See the details below.

Further reading: Provisional decree imposes new procedures for companies entitled to tax benefits

Who is required to file the DIRBI?

The DIRBI must be submitted each month by companies entitled to the tax benefits detailed in the regulation. This requirement applies to legal entities governed by private law and those treated as such, as well as consortia that conduct business on their own behalf.

Generally speaking, micro and small-sized companies under the Simplified Tax Regime (Simples Nacional) and sole microentrepreneurs are exempt from filing the document. In the same vein, newly established companies are also exempt, but only for the period from the month their articles of incorporation are registered until the month before their registration with the Brazilian National Registry of Legal Entities (CNPJ).

 

What should be reported in the DIRBI?

The report must include information on tax credits for taxes and contributions that have not been paid due to the granting of the following benefits, incentives, reliefs and exemptions:

• PERSE – Emergency Program for the Resumption of the Events Sector
• RECAP – Special Regime for the Acquisition of Capital Goods for Exporting Companies
• REIDI – Special Incentives Regime for Infrastructure Development
• REPORTO – Tax Incentive Program for Port Modernization and Expansion
• PADIS – Support Program for the Technological Development of the Semiconductor Industry
• Bunker oil
• Pharmaceutical products
• Payroll tax relief
• Beef, sheep and goat meat – export and industrialization
• Pork and poultry meat
• Coffee (roasted and unroasted), orange, soy and general farm products.

Submission and deadline

The document must be prepared and filed through the e-CAC system, using an electronic signature with a valid digital certificate. Submissions are due by the 20th of the second month following the assessment period. However, for the periods from January to May 2024, a single report must be filed by July 20.

Information on benefits related to Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL) must be included in the report for the month in which the quarterly period ends or, for benefits assessed annually, in the report for December of the corresponding year.

Penalties

Failure to comply subjects companies to the following alternative penalties, calculated per month or fraction thereof, and based on the gross revenue for the period (capped at 30% of the tax benefits received):

• 0.5% on gross revenues up to BRL 1 million;
• 1% on gross revenues between BRL 1 million and BRL 10 million
• 1.5% on gross revenues above BRL 10 million.

In addition to the above penalties, a fine of 3%, not less than BRL 500.00, will be levied on any omitted, inaccurate, or incorrect amounts.

Compliance with ancillary obligations

According to the Federal Revenue Service, all amounts reported will be subject to internal audit. Hence, companies should seek specialized support to review the information provided, ensuring accuracy and compliance with the tax authorities.

The team of experts at Domingues e Pinho Contadores provides clients with comprehensive solutions, from the preparation of ancillary obligations all the way to the submission of reports and data correction. You can rely on our support:  dpc@dpc.com.br.