Between June 02 and 12, Brazil’s Supreme Federal Court (Supremo Tribunal Federal/STF) is expected to decide whether the Declaration of Information on Means of Payment (Declaração de Informações de Meios de Pagamento/DIMP) is constitutional or not.
The DIMP is an accessory obligation that, pursuant to ICMS Agreement 134/2016 and COTEPE Act 65/2018, must be delivered by the following:
(i) Financial Institutions;
(ii) Payment Institutions that are part of the Brazilian Payment System (Sistema de Pagamentos Brasileiro) or not; and
(iii) Service and business intermediaries (including acquirers and sub-acquirers of commercial establishments for accepting cards and other similar companies).
ICMS Agreement 134/2016 was signed between Brazilian state governments, and establishes that the institutions indicated above are obliged to report all operations carried out by individuals and legal entities via Pix, debit and credit card or electronically. This obligation is in force since January 1, 2020.
According to Brazil’s National Financial System Council (Conselho Nacional do Sistema Financeiro/CONSIF), author of the claim, the DIMP is unconstitutional because it requires customer information that is protected by bank secrecy.
For more information, please contact our Tax Advisory team at Barcellos Tucunduva Advogados: ([email protected]).