Global Daily Tax News, Brazilian Simples Nacional-Excluded Tax Debtors Urged To Settle, (Jan 22, 2024)

Authorities in Brazil are giving taxpayers excluded from the Simples Nacional regime until the end of January to settle their tax debts to be reincluded within the scheme this year.

About 374,000 taxpayers registered for the Simples Nacional regime were excluded from the beginning of this year for failing to respond to a notice from the tax agency calling for the payment of outstanding debt.

The Simples Nacional regime is intended to dramatically cut the amount of time needed to comply with Brazil's onerous tax rules, by allowing companies to pay a single rate, under a progressive scale revised each year, for each tax levy, depending on their gross income.

The tax agency has said taxpayers excluded as of January 1, 2024, have until January 31, 2024, to regularize their tax affairs to enable reinclusion this year. Otherwise taxpayers will have to wait to reapply in January 2025.

Taxpayers may contest their exclusion by contacting the tax agency, if they consider that the liability is not due, or if they made instalments towards the debt within 30 days of being notified by the agency of the need to settle their affairs.