Global Daily Tax News, Brazilian Tax Break Beneficiaries Must File New Form, (Jun 21, 2024)

Brazil's Federal Revenue has published a new Normative Instruction in the Official Gazette that introduces an obligation on legal entities to file a new declaration if they access certain tax relief measures.

The new declaration is titled Declaration of Incentives, Waivers, Benefits and Immunities of a Tax Nature ("Dirb").

The Dirb must be filed, through the e-CAC portal, by all legal entities that benefit from one or more of the 16 tax incentive measures included in an annex to the Normative Instruction, as from January 2024.

The declaration need not be filed by companies who benefit from the Simples Nacional regime.

The return must be filed by the 20th day of the second month following the end of the fiscal year. For taxpayers with a fiscal period ending January to May 2024, the Dirb declaration should be submitted by July 20, 2024.

Penalties will apply for non-compliance with the requirement, capped at 30 percent of the tax benefits enjoyed. These range from 0.5 percent to 1.5 percent of gross revenue, depending on the size of the legal entity's revenue.