Brazil: ECF – extension of the deadline for delivery of the tax accounting bookkeeping

published on 29 July 2020 | reading time approx. 1,5 minutes

Tax aspects »
Labor aspects »

Tax aspects

Internal Revenue Service informs the extension of the deadline for delivery of the Corporate Income Tax Return (ECF).

On the last 15th of this month, the Normative Instruction IN RFB No. 1,965, which deals with the extension of the ECF, was published in the Official Gazette (DOU). Originally, said ancillary obligation should be presented, that is, transmitted until the last working day of July of each year. In this sense, the deadline for transmission of the Corporate Income Tax Return (ECF) concerning fiscal year 2019 has been extended, on an exceptional basis, to the last day of September 2020. Such extension is also applicable in case extinction, partial spin-off, total spin-off, merger or incorporation, which occurred in the period between January and April 2020.

It is worth mentioning that for the ECF's filling it’s necessary the prior bookkeeping of the Digital Accounting Bookkeeping (ECD), which had its transmission period also exceptionally extended until the last business day of July 2020, according to Normative Instruction IN RFB No. 1.950, of 12 May 2020.

Labor aspects

MP 936

We inform that the President of the Republic has approved a decree to extend the deadlines for entering into the proportional reduction of working hours and wages and temporary suspension of the employment contract and to pay the emergency benefits referred to in Law No. 14,020, of 6 July 2020 (former MP n° 936).

Thus, the terms that were previously 90 and 60 days for reduction and suspension of the employment contract, respectively, now become 120 days. Finally, the Decree maintained the payment of the Emergency Benefit by employees. However, despite the new decree having maintained such a possibility, the granting and payment of the benefit is subject to budgetary availability.

MP 927

We inform that MP No. 927 was not converted into Law and, therefore, its validity has expired. In this way, companies will no longer be able to use the advantages brought by this provisional measure.

Return to Work | Post-Covid-19

The return to the new “normal” should be gradual and, preferably, phased in order to assess and adjust the risk mitigation protocols and processes. Thus, we understand that the knowledge of the legislation, regulations and policies applicable to the health and safety of its employees and visitors, is crucial to avoid any risk of contact with infected people. Therefore, offering a safe and healthy environment within the company.