The Brazilian Reporting Trap

Because of the encompassing reporting duties the Brazilian finance and tax authorities know almost everything about companies residing in Brazil. Moreover, they have five years’ time  to check submitted data and initiate an audit. Such inspections are carried out with the utmost scrutiny and usually lead to high fines.

However, SAP in Brazil does not cover all mandatory reports wherefore using a third party provider becomes obligatory. Finding a partner who is familiar with local requirements is therefore essential. The finance and tax authorities compare all required reports in order to check for inconsistencies among the data. Consequently, different reports ask for the same information.

In order to avoid the Brazilian reporting trap, we assembled the most important required reports with the respective concrete information they need to include which are then cross-checked by the auhtorities.

Compared Reports Meaning and Due Date
Compared Information
EFD-ICMS/IPI Monthly report on business activities

 

Number of documents/receipts

Tax calculation

Assets credits

NF for credits

NF-e

NFS-e

 

Gia

 

Monthly report on business activities for ICMS
NF-e

 

Electronic invoice

 

 

Compared Reports Meaning and Due Date
Compared Information
ECF

 

Yearly report on accounting Account balances

Costs/expenses

Social security contributions on net revenue (e-lacs)

Income tax and social security contributions (e-lalur)*

ECF 2017 Yearly report on accounting
ECD Yearly report on digital accounting

* Even if the account balances match, the classification of the accounts and the reference accounts need to match as well. Otherwise, a warning will be shown when submitting the report.

 

Compared Reports Meaning and Due Date
Compared Information
EFD ICMS/IPI

 

Monthly report on business activities

 

Account balance

Information on earnings and payments (sum)

Inventory versus inventory account (storage)

Inventory (goods) from or at third parties

CIAP (Controle do credito de ICMS do ativo permanente) control of ICMS-reductions for permanent assets versus asset accounts

 

EFD-Contribuicoes Monthly report on taxes (PIS/PASEP/COFINS/Previdencia Social)
NF-e Electronic invoice

 

 

Compared Reports Meaning and Due Date
Compared Information
NF-e

 

Electronic invoice Financial results

Revenue

Withholding tax

 

DCTF Monthly report on IRPJ, IRRF, IPI, IOF, CSLL, PIS/PASEP, COFINS, CPMF, CIDE, CPSS, CPRB
ECF Yearly report on accouting
ECD Yearly report on digital accouting

 

Further reports used for cross-checking are EFD-Reinf und e-Social:

EFD-Reinf Monthly digital report Income and withholding tax
e-Social Digital report on social information Information on employees, social security contributions, payroll, list of work accidents, notice periods and information on FGTS (Fundo de Garantia do Tempo de Servico – guarantee fund for period of service)

 

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