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Get ready for the new accounting rule

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Drummond Advisors’ Tax Department has gathered information on the main tax measures published in recent weeks in Brazil that may affect you and your company. Check out:

1- Changes to the Foreign Trade Declaration – Siscoserv

The deadlines for submitting Siscoserv information were suspended between July 1, 2020 and December 31, 2020; however, Ordinance No. 25/2020 does not exempt the provision of information in the system.

On July 11, the Siscoserv system was deactivated by determination of the Ministry of Economy. The Department of Foreign Trade Operations (DECEX) clarified that the system shutdown is temporary and has occured due to the pandemic scenario in Brazil.

Siscoserv is a foreign trade obligation instituted in 2012 with the purpose of collecting data on imports and exports of services, intangibles and other operations that produce variations in the equity between Brazilians and foreigners.

2 – Extension of the PIS/COFINS deadline and other contributions 

Executive ordernº 245 postponed to November 2020 the period for the payment of the following contributions (which were originally due in June 2020):

  • employer’s social security contribution due by companies;
  • contribution to PIS/PASEP;
  • contribution to (COFINS).

The deadline for payment of the same contributions, scheduled for April and May, had already been postponed to August and October 2020, respectively. Therefore, the payment of contributions must follow the dates established in the table below:

DeadlineMonth of PaymentLegal ordinance
April/2020AugustOrdinance ME No. 139, April 3, 2020
May/2020OctoberOrdinance ME No. 139, April 3, 2020
June/2020NovemberOrdinance ME No. 245, June 16, 2020

3 – Reduction in IOF tax

Decree No. 10,414, issued on July 2, 2020, reduced to zero the Tax Rate on Financial Operations in credit operations contracted between April 3, 2020 and October 2, 2020.

Drummond Advisors remains committed to keep the team, customers and partners informed about the developments of the pandemic in aspects that affect you and your company in Brazil and the United States.