Recovering unduly paid taxes via PER/DCOMP: rules and strategies 

 

Understanding the possibilities and key regulations of PER/DCOMP is crucial for efficient tax management 

 

The Electronic System for Requesting Rebates, Refunds or Reimbursement and Claiming Tax Offset (PER/DCOMP) stands out as an important tool in Brazil’s tax scenario. This platform provides taxpayers with the possibility of reclaiming taxes that have been unduly paid. 

Given the complexity of the tax regulations in the country, it is understandable that instances of overpayment are not uncommon. Familiarity with the platform's request options plays a significant role in enhancing a business's financial efficiency.

 

• See also Tax credit recovery: a boost to emerge from the crisis

 

What is the purpose of PER/DCOMP? 

PER/DCOMP allows legal entities that have overpaid or unduly paid taxes or contributions to request a refund or reimbursement and to claim tax offsets in the following situations:

• Overpayments or undue payments made via a DARF (Federal Revenue Payment Form); 
  
• Undue or overpaid Social Security Contributions made via a GPS (Social Security Payment Form); 
• Carryforwards from Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL); 
• Withholding Tax credits, pursuant to Law 9,711/1998; 
  
• Children's Allowance and Maternity Pay; 
  
• IRRF (Withholding Income Tax) charged from cooperatives; 
  
• Non-cumulative PIS (Social Integration Program) or Cofins (Contribution for Social Security Financing); 
  
• IPI (Tax on Manufactured Goods) reimbursement 
  
• Benefits from the Special Tax Reintegration Regime for Exporting Companies – REINTEGRA

Taxpayers using eSocial who are also required to submit DCTFWeb can also:

• Offset social security liabilities identified through the DCTFWeb, with the payable balances of these obligations being automatically transferred from the DCTFWeb to PER/DCOMP Web, restricting the offset to these specific amounts;
• Submit requests for refunds or claim tax offsets by indicating credits from undue payments or overpayments related to eSocial, such as duplicated payments of a DCTFWeb-generated DARF or payments rendered undue following the correction of an ancillary obligation;
• Cross-offset tax credits against social security debts or the other way around, provided that both the credit and the debt pertain to periods during which the social security contributions were calculated via DCTFWeb.

 

Difference between PER/DCOMP and PER/DCOMP Web 

PER/DCOMP is a software that can be downloaded from the Brazilian Federal Revenue website, while PER/DCOMP Web is the online version that can be filled out directly on the internet. Both options are currently available; however, requests for IPI (Tax on Manufactured Goods) refunds and details regarding credits from the REINTEGRA scheme are only accessible through the PER/DCOMP program.

 

Rules for tax recovery 

Before starting the tax recovery process, one should bear in mind that it is necessary to prove that the corresponding payment was not required. Whether it is due to a miscalculation, misinterpretation of the law, or any other reason, the basis for tax recovery lies in proving that the tax was unduly paid.

Check out some important rules:

 

Deadlines 

In instances of undue payment, the right to request a refund expires after 5 years from:

• The date on which the tax obligation is considered fulfilled;
• The date on which the administrative decision or a court order that has amended, annulled, revoked, or overturned the original ruling becomes final.

It is critical to comply with the deadlines set by tax legislation to prevent forfeiting the right for filing a claim.

 

Documents

The PER/DCOMP form must be filled out as accurately as possible, and all documents necessary for proving that the payment was not warranted must be supplied. The proper submission of documents is essential for the request to be approved.

It is important to note that PER/DCOMP provides various options, such as tax refunds, reimbursements and offsets, each with its own procedural specifics within the administrative process.

 

Rectification of ancillary obligations

Adjustments and rectifications must be made to each corresponding ancillary obligation. Errors at this stage may result in penalties.

 

Access

The service is offered by the Brazilian Federal Revenue Service, and access for legal entities is strictly through a digital certificate.

 

Inflation adjustment

Interest is charged on offsets and refunds, adjusted for inflation using the Selic rate for federal bonds, accrued on a monthly basis. Calculation is made from the date of the undue payment or overpayment up to the month preceding the offset or refund, plus an additional 1% for the month in which the claim is made.

 

Strategies for tax recovery 

Recovering taxes that have been unduly paid is an effective strategy for companies aiming to achieve tax efficiency. 

To this end, carrying out a tax review can help identify any payments made in error by the company over the past five years and consolidate the documentary evidence required for starting a potential recovery process. 

Further reading:

• What can tax review do for your company?
  
• Tax offsets and refunds: from tax review to PER/DCOMP
  

It can also be said that relying on specialized support is crucial not only for a potential recovery of tax credits, but also for streamlining the entire tax management process.  

Adopting a professional approach to keeping abreast of regulations, court rulings, and guidelines issued by the Federal Revenue Service significantly mitigates errors arising from a lack of understanding regarding the applicability of legislation.

 

Support for tax management 

Domingues e Pinho Contadores provides comprehensive solutions for business management. Rely on our experts for performing tax reviews, credit recovery processes, and preparing/amending ancillary obligations. Reach out to us at: dpc@dpc.com.br.