Siscoserv - Federal Revenue of Brazil clarifies on fines applied for inaccurate, incomplete or omitted information

On April 10, 2018, RFB Normative Instruction No. 1803/2018 was published, amending the RFB Normative Instruction No. 1277/2012, establishing the Integrated Foreign Trade in Services, Intangibles and Other Operations that Produce Changes in Equity - Siscoserv.

It is important to remember that Siscoserv should provide information on transactions between residents or domiciled in Brazil and residents or domiciled abroad including services, intangibles and other operations that produce changes in individuals, legal entities or depersonalized entities equity. For more details about Siscoserv, we have a summary here.

RFB Normative Instruction No. 1803/2018 clarifies how the caption "value of commercial transactions or financial transactions" is understood in Siscoserv. According to Siscoserv's regulations, the taxpayer who fills in the system with inaccurate, incomplete or omitted information should be summoned to file them or to provide clarifications within the deadline the Federal Revenue established and should be subject to the following fines:

a) 3%, not less than BRL 100.00, from the commercial or financial transactions values, specific to legal entity or third parties related to which is tax responsible;

b) 1.5%, not less than BRL 50.00, of the value of the commercial transactions or of the financial transactions, specific to the individual or third parties related to which is tax responsible.

In this context, the commercial or financial transactions value corresponds to the:

• transaction value subject to registration at Siscoserv specifically related to inaccurate, incomplete or omitted information; or,
• sum of the transaction value to which the inaccurate, incomplete or omitted information refer to, in the case of information common to different operations subject to registration in Siscoserv and compose a set of data characterizing a service provision, a transfer or acquisition of intangible assets or the realization of an operation that produces changes in equity.

Consult here the RFB Normative Instruction No. 1803/2018.