Since the introduction in Brazil of Provisional Measure 2,158-35 of August 24, 2001, taxpayers can choose to tax the effects of currency rates by the cash regime or by the accrual basis, of IRPJ and monthly CSLL.

Since the publication of Law 12.249 of 2010 and other normative acts, the option to tax the effects of currency rates – by the cash or accrual regime – is informed by sending the DCTF of the jurisdiction annually every January– an irreversible option throughout that year.

Imagine that your company has a large foreign currency liability, which is constantly changing due to currency fluctuations.

When calculating the IRPJ and CSLL of this case, it is ideal to opt in the annual DCTF by the CAIXA regime in order to neutralize the unrealized tax effects of the change in the value of a foreign currency. This way, the company taxes the possible gain or loss with exchange variation only when there is the actual payment.

However, if the option this January was for COMPETENCE, there may be an opportunity to adjust the DCTF.

Based on Decree 8451 of 2015, the change in there could be a change of regime when there is a high currency fluctuation rate. This change should occur on the month following that in which the high exchange rate fluctuation occurred. This is due to the recognition of the monetary variations of the credit rights and of the obligations of the taxpayer according to the exchange rate.

Exchange rate fluctuations are considered high when the US dollar – selling price and verified by the Central Bank of Brazil – is subject to a positive or negative variation of more than 10% (ten percent) in the period of one (1) calendar month, as provided for in Article 1 of said Decree.

In August 2018, for example, the currency rate fluctuated by 10.30%.

So, the moment demands careful attention! Talk to your accountant and check DCTF and LALUR, to see if the CAIXA scheme option is in both documents.

Is it not? Is it by competence?

Contact us for a more detailed evaluation.

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Brazil is going through an important moment of technological and structural reformulation of mechanisms of accounting control, fiscal, tax and personal department routines.

This process impacts companies of all sizes and extends to individuals – employer and taxpayers.

Specifically in the case of legal entities, we know that the volume and complexity of operations are bigger. Therefore, it is always necessary to evaluate the progress of its operational activities.

Since they are the basis for information and data cross-referencing for the main existing ancillary statements, these activities may impact the progress of accounting and tax deeds and the recording of information by the personal department.

So how do you ensure the monitoring this information not letting any details go by?

With the creation of ESocial, EFD-REINF and DCTFWEB, there will be a direct connection between the sending of information – accounting, tax and labor – and the database at the Internal Revenue Service for the main controls of debits and tax credits.

That is to say, for example, that the issuing of a simple collection form – which has long been generated by manual filling – will now be done on the basis of integrated information.

Here’s how the integration will work:

Note that guides to collect, rectify or supplement any information will only be generated when the declaration of origin of the obligation is rectified.

This way, all information must be regular before issuing.

See how these statements will briefly impact your life:

ESocial – System that integrates information related to fiscal, labor and social security obligations.

The E-Social seeks to reduce the time consumed by companies in the execution of different tax, social security and labor obligations, through the use of a consolidated information base.

The information generated by the E-social system will be connected to the DCTF-Web database. The latter will be responsible for maintaining a database that will serve to cross-breach obligations, make payments and monitor company regularity.

EFD-REINF – Digital Tax Bookkeeping of Retentions and Other Tax Information.

The EFD-REINF will contain IRRF, CSLL, PIS, COFINS and Social Security Contributions information on services taken and rendered.

In the beginning, social security information will be sent (Registers R-2010, R-2020, R-2030, R-2050 and R-2060) and, according to the progress of its implementation, other tax information will be added.

In order to fully comply with this declaration, the entire process of sorting invoices for services taken and rendered, as well as the accounting and tax deeds and the calculation of taxes, must be correct and in accordance with what will be informed.

DCTF-WEB – Declaration of Debts and Federal Tax Credits Social Security and Other Entities and Funds

The DCTF-WEB is an ancillary tax obligation, whereby the taxpayer confesses debts of social security contributions and contributions to third parties.

This system will be used to edit the declaration information, transmit it and generate the collection document (DARF).

This new statement will replace the current DCTF and will anticipate the submission of the information.

While the current format considers the 15th business day of the second month following the triggering event, DCTFWEB is due on the 15th of the subsequent month.

Therefore, the information will need to be sent with an advance of approximately 30 days, which will impact all financial and administrative management.

For this reason, more than ever, financial information must be integrated into accounting, tax, labor and social security deeds, and all need to be ready and reviewed by this date.

Conclusion

It is crucial that companies are increasingly prepared for all these changes.

Consequently, it is very important that processes are reviewed and supported by integrated management systems that are effective and ensure accuracy in the generation and transmission of information.

Investing in technical knowledge and technology has been a practice among companies seeking greater efficiency in their operations in order to mitigate risk and reduce operating costs.

RTURBA is always attentive to the most innovative tools. That’s why we work with an integrated management system, with a 100% secure web platform, accessible and prepared to serve companies from different segments.

Learn more at http://www.rturba.com.br/en

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The new date for delivery of the information related to the first phase – employer registrations and tables – that was formerly August 31st of 2018 – will now be September 28th, 2018.

As for the deadline for delivery of the information related to the second phase – data of the workers and their links with the companies – that was supposed to be delivered until September 28th of 2018, will now be October 10th, 2018.

For more information about ESocial, see our summary on the subject.

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The main characteristic of this new computerized system for confession of debt is the fact that there is a direct connection with other ancillary declarations. This connection will allow state agencies to have a greater capacity to track the reported information. DCTFWEB will have a direct link with ESocial and EFD-REINF through the transmission of two accessory obligations, which once transmitted will feed the DCTFWEB database.

Another important detail is related to the making of DARF, which became totally linked to the information contained in ESocial, EFD-REINF and DCTFWEB. In the current format, the taxpayer has the possibility of manually informing the amount that he deems correct for the issue of the Collection Document. This manual procedure has for a long time been subject to mistakes and mistaken fills. In this new format, DCTFWEB ensures that information is increasingly accurate and more readily available for analysis.

Source: Manual da DCTFWeb – Versão 1.2 (In Portuguese)

As provided in art. 2 of IN 1787/2018, DCTFWeb is a very comprehensive ancillary statement, so it will reach not only legal entities in general, but also individuals, individual micro entrepreneurs, federal and regional councils and public agencies that are in the condition of taxpayers or tax officials.

In its initial phase, DCTFWeb should be transmitted to companies with billing in the calendar year of 2016 above R $ 78 million, from the generating facts that occur from 08/01/2018.

The remaining taxpayers will be handed over to DCTFWeb as of 01/01/2019, with the exception of public administration agencies, which will send it on 07/01/2019.

It is worth noting that at this stage only social security and labor information will be transmitted. The other information to be transmitted will be subject to the disclosure of a schedule by the IRS.

Fine for Infringements or Omissions

The taxpayer who presents DCTFWeb with inaccuracies or omissions is subject to a fine of R $ 20.00 (twenty Brazilian reais) for each group of ten incorrect or omitted information, subject to the minimum fine.

Omit information to suppress or reduce contribution (?)

The non-transmission of DCTFWeb subjects the company not only to the receipt of MAED, but also to be prevented from obtaining the Negative Debit Certificate (CND).

Minimal fine

The minimum fine to be applied in the event of delay in delivery of the declaration shall be R$200.00 (two hundred Brazilian reais), in the case of omission of a declaration without occurrence of generating facts, and R$ 500.00 (five hundred Brazilian reais) in all other cases.

The minimum fine will have a reduction of 90% (ninety percent) for the MEI and 50% (fifty percent) for the ME and the EPP included in the National Simples.

At this moment of profound regulatory changes of accounting and tax control, it is essential to have professionals in the market who can contribute to the compliance of companies to this new reality.

We have the methodology and experience to advise companies to achieve better results.

You can count on us.

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Now, going a little deeper in this subject, we will detail the deadlines and characteristics of the companies that fit the obligation to provide Bloco K.

The year 2019 will be the first year that effectively ALL companies acting in Brazil will need to submit complete Bloco K notices.

The first will be the large companies, who already have a scheduling by segment defined until the year 2022. Companies with a turnover of less than R$ 300,000,000.00 are waiting for the definition that should be announced soon by CONFAZ and the Brazilian Department of Federal Revenue.

The following is a general summary of actions to be taken starting next year by companies required to submit information in Bloco K of EFD-ICMS / IPI:

(1) For companies with a turnover of less than R$ 78,000,000.00

As of January 1, 2019, according to the provisions of the SINIEF Adjustment No. 25/2016, the industrial establishments (Divisions 10 to 32 of the CNAE), the wholesale establishments (Groups 462 to 469) and those obliged to complete the K200 and K280 records of Bloco K of the EFD-ICMS / IPI.

(2) For companies with annual sales of R $ 300,000,000.00 or more

Effective January 1, 2019:

• Complete bookkeeping of Bloco K, for industrial establishments classified in divisions 11, 12 and 291, 292 and 293 of the CNAE, which are the manufacturers of beverages, tobacco products, automobiles, trucks, cabins, bodies and trailers.

Effective January 1, 2020:

• Complete bookkeeping of Bloco K, for the industrial establishments classified in divisions 27 and 30 of the CNAE, which are the manufacturers of Machines and electrical materials and other transport equipment.

From the 1st of January 2021:

• Complete bookkeeping of Bloco K, for the industrial establishments classified in division 23 and groups 294 and 295 of the CNAE, which are non-electrical materials manufacturers, manufacture of parts and accessories for motor vehicles, and reconditioning and recovery of engines.

From the 1st of January 2022:

• Complete bookkeeping of Bloco K, for industrial establishments classified in divisions 10, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 24, 25, 26, 28, 31 and 32 of the CNAE, who are the manufacturers of the other categories.

As we said in the previous publication, the time has come for companies to invest in control mechanisms, and systemic automation, technical qualifications that enable reliable accounting and tax records and records that support the information that will be transmitted by EFD-ICMS / IPI through Bloco K.

To do this, count on the advice of a company that for more than 10 years has been contributing to make its clients more efficient in their back office operations, offering solutions for outsourcing accounting and tax services and achieve better results.

Contact us for an evaluation.

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It is intended to allow the country’s Federal Revenue Office to obtain monthly information on the movement and balances of the taxpayer’s inventory and automatically make a comparison with the accounting and tax information sent by the same taxpayer.

Objective: greater control.

A Block K can keep information about stock types, origin of inventories, consumption of inputs, items produced, stock balances and other information that are then migrated to the financial and tax statements.

The operationalization of Block K will substantially impact companies that carry out industrialization or similar activities, and companies that carry goods and inventory movements, which will naturally need to review processes, train their teams, seek solutions with automation and integration of accounting and tax information, and invest in advice and consulting.

Since January 1^st, 2017, companies with revenues equal to or greater than R $ 300,000,000.00, already report the final balances of their inventories (own and third parties) as well as their adjustments in Block K records.

In the beginning of January 2018, it was the turn of companies with a turnover equal to or greater than R $ 78,000,000.00 to generate such information.

Caution!

In 2019, companies with annual sales of less than R $ 78,000,000.00, will also be obliged to send inventory information regarding Block K.

This is a very relevant issue, and it should be emphasized that companies must map and redesign their internal processes, train their teams, integrate accounting and tax information in a timely manner, using a management system (ERP) or through partnership with a company outsourcing accounting and tax services.

The year 2019 will be the first year that all companies will effectively need to submit complete K-Block notices, compulsorily.

In addition, the EFD-ICMS / IPI is a monthly bookkeeping and penalties are heavy at the federal level and may vary according to reference status.

In Rio de Janeiro, for example, in cases of incorrect or omitted information, according to subsections II of art. 62-B of Law no. 2.657 / 1996, penalties may vary from 1500 to 25.000 UFIR’s, by judicial intimation, in addition to a fine of 3% on the value of commercial transactions or financial transactions, specific to the legal entity or third parties for which responsible for tax, according to art. 57 of Provisional Measure No. 2,158-35 of August 24, 2001 and its amendments.

Is your company prepared for these implementations? Questions? Contact us.

Count on the advice of a company that for more than 10 years has been contributing to make its clients more efficient in their back office operations, offering solutions for outsourcing accounting and tax services and achieve better results.

The post BLOCK K – ICMS / IPI: What is it and what is it for? appeared first on RTURBA Serviços Contábeis.

Outsourcing business processes has become a business necessity because companies are facing a globally competitive market every day. Therefore, the focus on end-activities is mandatory.

However, the company managers need to be sure that accounting, financial and managerial information are being timely generated by the outsourcer in the best possible quality under the circumstances.

Selecting the Right Service Outsourcer

Choose established partners. Look for information about the company for your first contact. Check out the main social media and search for company’s history, Mission, Vision and Values.

Watch them. Hold meetings and see if professionals have experience in outsourcing. Make sure the outsourcer knows all the dimensions that move an organization, such as: people and corporate culture, processes, infrastructure, external agents, etc.

An outsourcing process must respect the company culture, map information processes, identify the functionalities of (integrated?) systems, avoid the same work being done by more than one employee, and the existing internal controls, which are fundamental to obtaining reliable accounting, tax, financial and payroll information.

Buyers should be aware of technological advantages and secure business processes so that they can ask their outsourcers for such services before they design and structure the entire outsourcing project, resulting in “standard” service without any increase and security in the handling of information. Define transition plans and deadlines.

Try to identify the technology that the outsourcer will use in the design of the solution: if the system (ERP) is known in the market, search on the web, identify if your company can use part of the system modules – financial, for example – having the information available at any time.

Clearly define the desired outcomes in the outsourcing partnership and how they will be measured. Consider long-term relationship dynamics by clearly defining desired outcomes and how they will be measured.

Establish good lines of communication. There are several problems that can cause confusion, such as language barriers, differences in time zones, different cultural and economic environments. It is crucial that both parties understand each other.

Work with, do not impose. Once you outsource, your provider is part of your company; so treat it this way. Give them a sense of ‘dominance’ over their tasks.

A worried company must learn to encourage, insist and persist. It should also learn to listen to the advice of its consultants and, within its resources, promote the inclusion of improvements as part of its corporate goals, henceforth

Be sure to get what you paid for. Not necessarily the cheapest.

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Undoubtedly, one of the fundamental pillars for the maintenance of human relations is trust.

In this way, it is especially the aspect of greater importance in business relations, since it establishes the conviction of fulfillment of the agreements signed between the parties.

Today, we are experiencing a general and institutional crisis of confidence.

The entrepreneur now has to rely on the human resources involved to create documentation of routines (process compliance) that do not depend on the people; rely on computer systems that process and generate accounting and financial information; rely on the firewall system to ensure that your internal systems will not be affected by hackers, or accessed by third parties and used improperly; rely on the back-up routines of “now digital” accounting and financial information; trust that you will receive all accounting and financial information for decision making, are correct.

Worse than lack of information, is to make decision based on wrong information.

To rely on the accounting and financial information generated by the organization, the company must create and maintain a talent engagement and retention policy; needs to spend financial resources on training and updating professionals in all changes in legislation that affect accounting and financial information; upgrade information systems (ERP) and back-up systems.

To invest, invest and invest.

Why not entrust your accounting and financial processes to a company that has exactly this job as an activity? A company that focuses on talent retention, focuses on training, focuses on on job training?

This way, the management of the company can dedicate 100% of its time to the goals of society: seek profit!

In our next article, we’ll talk about the “do’s” and ”don’t’s” when choosing an outsourcing company for accounting and financial services.

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As a result of this action, private institutions will no longer have to submit information separately to different organizations. Currently, employers must separetely submit all sort of information to the Social Security, the Federal Revenue Service, the Federal Savings Bank and the Ministry of Labor.

WHAT ARE THE BENEFITS OF THE NEW ESOCIAL SYSTEM?

The great advantage is that this system collects and summarizes a wide range of information (labor, social security and tax). It allows the participating bodies of the project to consult and use such information in a single environment whilist reducing bureaucracy.

In practice, companies will have to periodically send information online for the eSocial Empresas platform. Through this channel, employers will communicate to the Federal Government, in a unified form, 15 obligations. Payrolls, the Work and Social Security Portfolio (CTPS in Portuguese), the Statement of Federal Tax Credits and Debts (DCTF in Portuguese) and the Withholding Income Tax Return (DIRF in Portguese) will all be informed through eSocial.

WHAT ARE THE IMPLEMENTATION STEPS?

The new system will be mandatory as from July 2018. However, to facilitate compliance, the government divided the due date into two steps, taking into account the company’s turnover:

 Beginning January 1, 2018 – eSocial will be mandatory for companies with an annual turnover of more than R $ 78 million.

 As from July 1, 2018 – the obligation will be extended to other employers and taxpayers with annual revenues of less than R $ 78 million.

The implementation schedule for each service will also be divided into five phases:

Phase 1: Only company information, ie employer records and tables.

Phase 2: At this stage, companies are forced to send information about workers and their links with companies (non-recurring events), such as admissions, removals and dismissals.

Phase 3: It is mandatory to send payrolls.

Phase 4: Replacement of GFIP (Social Security Information Guide) and cross compensation.

Phase 5: In the last phase, the worker’s health and safety data should be sent.

Right away, the main measures that companies must adopt to comply with eSocial is the registration qualification, the review of administrative processes and focus on the integration between the areas.

Companies that fail to send the information through the software will be subject to penalties and fines. The estimated fine is R $ 1,500 for not sending the digital bookkeeping. However, this amount can be accumulated with the penalties provided for the omissions of the declarations that will be replaced by eSocial.

WHAT IS THE IMPACT ON LEGISLATION?

The main goal of this project is to reduce the bureaucracy for companies when it comes to sending information.

By replacing the delivery of several obligations with just one fully standardized operation, companies will reduce the time and expense currently dedicated to performing these tasks. In addition to simplifying the life of companies, eSocial Empresas will bring significant benefits to the employee. It will allow to ensure, in a much more effective way, compliance with labor and social security rights.

Thus, this new system will only consist of a new way of providing and gathering information in a simplified form by companies. It will not change the specific legislation of each area.

The post ESOCIAL: A NEW PROPOSAL TO DECREASE CORPORATE BUREAUCRACY IN BRAZIL appeared first on RTURBA Serviços Contábeis.

Renata Turba and Mr. Luiz Paranhos Velloso Jr., President of JUCERJA

On March 23^rd, Renata Turba paid a visit to Mr. Luiz Paranhos Velloso Jr., president of JUCERJA – a commercial public organ that carries out the registration of acts related to the companies, such as business openings and contractual changes in Rio de Janeiro.

She questioned him about how a centenarian Public Organization is adapting to the advance of the technological super “wave” that demands more and more services to go online. Everything becoming faster and with more quality. How to achieve this by dealing with nothing more ancient than Books, Contracts, and Certificates?

Luiz Velloso stated that JUCERJA is investing heavily in technology and we can already see that contractual changes are made available on the Organization’s website.

“JUCERJA already releases almost 100% of the Business Opening Terms in 72 hours. In the general set of processes, 80% is being released within 48 hours. With the automated process, JUCERJA seeks to meet ‘opening terms’ in 48 hours and this way we will no longer have an extremely bureaucratic body, in which the processes of incorporation of companies require a lot of time. ” says Luiz Velloso.

Few people know, but every Wednesday and Friday, in the afternoon, there are on-site attendance services on the 12th floor, organized by order of arrival. Most importantly, this service is done by vowels that are technically better prepared to respond to inquiries related to pending issues that restrain the release of records, among other information.

So, how about taking advantage of this initiative? Believe me: Just a few time ago this shift also worked on Mondays, but it was suspended for lack of a quorum … incredible, right?

JUCERJA in 2016 implemented REGIN – a hybrid process that allows a registration or change of social contract, for example, to be started on JUCERJA’s website and in an integrated and agile way this event is adhered to the RFB (the Brazilian Internal Revenue Service) database.

And even better: Those who use this hybrid system have a 10% discount on the rate.

But not everything is perfect.

With the advent of the ECD (digital electronic information system) there was a total detachment of professionals with JUCERJA, since the books Diário e Razão are sent electronically to the RFB. Some of us, up to this date, believe that the delivery of ECD with protocol and digital signature already meets all legal requirements.

This is because Decree No. 6022 of January 2007 established that SPED (Brazilian Public System of Digital Bookkeeping, which is part of the Growth Acceleration Program in the country) unifies the activities of reception, validation, storage and authentication of books and documents that integrate the commercial and fiscal bookkeeping of entrepreneurs and business companies, through the single and computerized flow of information. However, Decree No. 7979 of 2013, replaced the commercial word for accounting.

In this way, the ECD only solves accounting and tax matters, leaving aside commercial issues. We continue to comply with commercial law requirements that are not being complied with, because the legislation governing SPED (ECD) has not repealed Decree No. 64,567 of 1969 and Law 486/69, which establishes:

The entrepreneur and legal entities must keep in their custody and responsibility the books and documents in the original format and deadlines provided in the applicable legislation.

Now, that is overwhelming. Too many books to print and sign? You would better run!

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