New obligations imply cost and time for information parameterization
Since last Monday (16), taxpayers have been required to submit the Digital Tax Bookkeeping of Withholdings and Other Tax Information (EFD-Reinf), referring to taxable events occurring as of September 1, 2023, with withholding tax.
The new obligation has generated a race against time in accounting offices. After all, failure to file or filing after the deadline implies a fine of up to 2% per calendar month or fraction thereof on the amount of taxes reported.
However, unlike new obligations, EFD-Reinf was not implemented gradually. This has made the work of accounting professionals more difficult, especially for small companies, which generally don't have proper document organization.
In an interview with Portal Contábeis, Katia Gutierres, a lawyer specializing in tax law and a partner at Barcellos Tucunduva Advogados, explains the main changes to the obligation and how the legislation should be applied. Check it out.
Which companies are obliged to send EFD-REINF?
The EFD-Reinf must be sent by the following companies (even if they are immune or exempt):
Legal entities that have paid or credited income on which Withholding Income Tax (IRRF) has been withheld, by themselves or as representatives of third parties.
Legal entities responsible for withholding PIS/Pasep, Cofins and CSLL;
Companies that provide and contract services through the assignment of labor;
Legal entities opting to pay the CPRB;
Rural producers who are legal entities and agro-industries when subject to the substitute social security contribution on gross revenue from the sale of rural production;
Purchasers of rural products;
Sports associations that maintain a professional soccer team and have received amounts from sponsorship, licensing of the use of brands and symbols, advertising, publicity and broadcasting of sporting events;
Sponsoring companies or entities that have allocated funds to a sports association that maintains a professional soccer team by way of sponsorship, licensing of the use of brands and symbols, advertising, publicity and broadcasting of sporting events;
Entities promoting sporting events held in the national territory, in any sporting discipline, in which at least one (1) sports association that maintains a professional soccer team participates; and Legal entities that receive sums from other legal entities as commissions and brokerages, when they are responsible for withholding and paying the IRRF themselves (Normative Instruction No. 2,163, of October 11, 2023).
According to SRF Normative Instruction no. 153, of November 5, 1987, the following are subject to self-withholding:
I - Legal entities that receive sums from other legal entities as commissions and brokerages relating to:
a) placement or trading of fixed-income securities;
b) transactions carried out on stock exchanges and commodities exchanges;
c) distribution of securities issues, when the legal entity acts as agent for the issuing company;
d) foreign exchange transactions;
e) sales of tickets, excursions or trips;
f) credit card administration;
g) the provision of meal distribution services through the meal deal system;
h) provision of agreement management services; and
II - By advertising agencies, by order and on behalf of the advertiser.
What new information must be transmitted?
EFD-Reinf is one of the modules of the Public Digital Bookkeeping System (SPED), which will replace the Withholding Income Tax Return (DIRF). This module will contain information on income paid and withholdings of income tax and social contributions (except those of a labor nature, which are reported by eSocial).
What is the deadline for sending this information?
For legal entities that receive sums from other legal entities as commissions and brokerages, and that are subject to self-withholding according to the list provided for in SRF Normative Instruction No. 153, of November 5, 1987, the sending of EFD-Reinf, with the respective information on income and tax withholdings through event R-4080, has been extended to January 1, 2024, cf. INRFB 2163/2023.
The general rule for submitting the EDF-REINF is by the 15th of the month following the month to which the bookkeeping refers. The deadline will be postponed to the first working day following the 15th when it falls on a non-working day for tax purposes.
Do you think it would be ideal to have a gradual implementation, by type of tax regime?
Absolutely. The implementation of new accessory obligations implies compliance costs for companies, as well as the need for time to correctly parameterize information. I believe that the RFB should be sensitive to this practical aspect for companies.
Source: Accounting