Brazil: Deadline of Annual Accessory Obligations (ECD and ECF)

published on 24 June 2022 | reading time approx. 2 minutes

The deadline for companies to submit information on Digital Accounting Bookkeeping (ECD) and Tax Accounting Bookkeeping (ECF) are:

ECD: It can be delivered until the last business day of June 2022.
ECF: It can be delivered until the last business day of August 2022.

The ECD is the accessory obligation that consolidates all the company's accounting information, such as balance sheets, DRE's, DMPL's and other financial statements.

The ECF is the accessory obligation that consolidates the information for calculating income tax and social contribution, therefore, the ECF, from the tax point of view, is the most important accessory obligation of the year. From this accessory obligation, the tax authorities may cross the declared amounts with the amounts paid. Therefore, with the ECF, the tax authorities will be able to cross/validate information already declared in the DCTF, SPED Fiscal and SPED Contributions.

In addition to this information, it is in the ECF that transfer pricing information (mandatory for companies in actual profit that have intercompany operations) and Country-to-Country Declaration (mandatory for multinational companies) are included.

The non-delivery of the ECF by companies taxed by Real Profit, or its presentation with inaccuracies or omissions, may result in the application of the following fines:

0.25 per cent, per month or fraction, of net income before IRPJ and CSLL, in the period to which the calculation refers, limited to 10 per cent in relation to legal entities that fail to present or present the ECF in arrears; and
3 per cent, not less than BRL 100.00, of the omitted, inaccurate or incorrect amount.

The review of annual accessory obligations is an excellent instrument to mitigate the risks of tax assessments.

The Rödl & Partner South America Tax Consulting team is available to assist you in the preparation and review of accessory obligations and for additional clarifications regarding this relevant topic.