New rules for DCTF and option for accrual regime for inactive companies

Normative Instruction 1708/2017 was published in the Official Gazette of May-23-2017 amending RFB Normative Instruction No. 1599/2015 (providing for DCTF) and RFB Normative Instruction No. 1079/2010 (providing for the tax treatment applicable to the currency variations of credit rights and of taxpayer’s obligations according to exchange rate).

The changes to file Federal Tax Debits and Credits Statement (DCTF) are as follows:

1. Exemption from using the digital certificate to file DCTF for companies and other inactive entities;

2. Extension of the deadline to file DCTF to July-21-2017 for months from January to April 2017, companies and other inactive entities or for those who have no debits to state;

3. Deadline to July-21-2017 so that ostensive partners from special partnership (Sociedade em Conta de Participação - “SCP”), registered in the CNPJ as mother establishment to correct the DCTF for the months from December 2015 to February 2016 to include SCP information.

It is noteworthy that the deadline remains unchanged to file the DCTF by companies and entities with debit values to state.

For tax treatment applicable to currency variations of credit rights and of the obligations of the taxpayer as a function of the exchange rate, the change refers to the possibility the inactive company to opt for the accrual basis in the month in which it returns to the activity.