DIRBI: 5 Q&A about the new requirement 

Companies that enjoy tax benefits must integrate measures into their routines to ensure their monthly compliance with the new ancillary obligation

Regulated in June by the Federal Revenue Service through Normative Ruling No. 2,198/2024, the DIRBI has astonished legal entities and accountants alike with its nearly immediate implementation in July.

Despite requests from professional bodies and organizations to revoke this new ancillary obligation, the Brazilian tax authorities have made it clear that the requirement is here to stay. With the deadline for the first submission just around the corner, companies must make the necessary adjustments to remain in good standing. Here are the key points about the report:

What is the DIRBI?

The Tax Incentives, Reliefs, Benefits and Exemptions Report (DIRBI) is a new requirement from the Federal Revenue Service for legal entities that enjoy certain tax benefits.

What is the frequency and deadline for submission?

The DIRBI must be filed on a monthly basis and must be submitted by the 20th day of the second month following the reporting period.

What entities are required to submit the DIRBI?

The report must filed by:

• Private legal entities in general, except those under the Simplified Tax Scheme (Simples Nacional)*;
• Legal entities defined as such by law, including those that have been granted tax immunity
• Consortia conducting business on their own behalf.

* Companies under the “Simples Nacional” system that are required to pay the Social Security Contribution on Gross Revenue (CPRB) are also required to submit the report.

Which tax benefits should be reported?

The DIRBI must include information on the amounts of tax credits related to taxes and contributions that have not been paid due to the following incentives, waivers, benefits, 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.

Are there penalties for non-compliance?

Yes. Entities that fail to submit the DIRBI on time or do so past the legal due date will be subject to a penalty, calculated per month or fraction thereof, levied on the company's gross revenue for the period (capped at 30% of the total tax benefits enjoyed).

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

Additionally, regardless of the aforementioned penalties, a fine of 3%, not less than BRL 500, will be imposed for any omitted or misreported amounts.

All-round tax solutions

Relying on a partner who specializes in meeting these and other requirements is a way to ensure on-time and compliant submissions. For all-round tax solutions, contact DPC: dpc@dpc.com.br.