The new government under Jair Bolsonaro has already announced a tax reform for 2019. Until this will be outlined and passed, a “regulatory calm” can be expected – at least in terms of Brazilian standards.
Currently, changes are planned for Bloco K, eSocial für Simples Nacional and GIA. Since those might be relevant to your business we will outline them in detail.
Overview of Changes
Bloco K is a file within SPED (Public Digital Bookkeeping System) which includes information on production and inventory (details here). Since January 2019, companies with a revenue of up to 78 Mio. R $ are required to submit the report. However, companies have to submit less detailed information as previously expected. Still, the data need to be recorded in production and inventory books in order to be audited by the financial institutions in case of mistakes or inaccuracies.
Simples Nacional und eSocial
Companies that decided to use the Simples Nacional (details here) will also have to use the eSocial (details here) platform in order to collect information of their employees. Thus, data on employment, tax and social security insurance of almost 40 million workers will be recorded. This applies to companies with a yearly revenue of more than 78 Mio. R $. According to the current schedule, all companies except for agri-businesses and non-profit institutions have to submit these information until January next year.
End of ICMS GIA
With view to auxiliary duties there is good news for taxpayers in São Paulo. The tax authority is planning to abandon GIA (instruction on how information and calculation practices for ICMS, details here). Gia is a complex and detailed report that requires information about the buying and selling of goods as well as the creation of credits and debits.
Currently, a group of 1.200 companies is part of a pilot project which evaluates the necessities of abandoning the report. SEFAZ is monitoring the project in order to control, assess and perfect the new system until it will come into effect at the end of 2019.
Changes of the DIFAL rate
Since 2019, ICMS taxpayers that sold goods to end users in other federal states had to pay the tax to the state of destination. Until then, the difference of rates was divided between 80% in the state of origin and 20% in the state of destination.
Planned EFD changes
Changes to the EFD contributions (EFD = digital archive for digital bookkeeping for PIS/COFINS taxes) are necessary to exclude the ICMS tax when calculating the tax base for PIS/COFINS because of its unconstitutionality (details here). The unconstitutionality of the ICMS inclusion was confirmed by a federal court in 2017.
These regulatory changes could affect your business with view to customizing or support of your ERP/SAP system. Please contact us to learn about possible necessary reactions to the changes – we are happy to assist you!