To bring some relief to taxpayers challenged by the COVID-19 outbreak, on April 1, 2020, the “Receita Federal do Brasil,” the Brazilian Revenue, announced that the filing deadline for all taxpayers subject to Brazilian tax law in respect of the 2019 tax year has been extended to June 30, 2020. The original due date was April 30, 2020. Additionally, the Brazil Central Bank has announced filing extensions to the Brazilian Capital Abroad Reports in respect of the 2019 calendar year and of the 2020 first quarter report.
On April 1, 2020, the “Receita Federal do Brasil,” the Brazilian Revenue, announced1 that the filing deadline for all taxpayers subject to Brazilian tax law in respect of the 2019 tax year has been extended to June 30, 2020. The original due date was April 30, 2020.
Additionally, on March 24, 2020, the Brazil Central Bank announced2 filing extensions to the Brazilian Capital Abroad Reports in respect of the 2019 calendar year (new deadline is June 1, 2020) and for the 2020 first quarter report (new filling period is from June 15, 2020 to July 15, 2020).
The extended deadlines provide relief to taxpayers who may be unable to meet the original filing/reporting deadline due to the ongoing COVID-19 crisis and disruption to normal business routines and processes. Taxpayers and tax service providers should be aware of the relaxation of the filing deadline and take action to meet the new deadline as appropriate.
The tax returns filing deadlines were common in Brazil until the 1990s. However, after the Law 9.250/1995 came into effect establishing rules for the filing of tax returns, the deadline was set as end of April every year.
Taxpayers had the period from March 1, 2020 to April 30, 2020 to complete their 2019 Brazilian Income Tax Returns and pay the related tax due. As a result of the disruption caused by the COVID-19 emergency, Revenue confirmed that the filing deadline has been extended to June 30, 2020, in respect of the following returns:
Late-filed tax returns are subject to penalties of 1 percent per month, limited to 20 percent, on the total tax amount due (even if already paid), with a minimum applicable amount of BRL 165.74.
The Revenue has also extended the deadline for the payment of income tax due in respect of 2019 Income Tax Returns until June 30, 2020.
The tax amounts due can be paid by a tax bill (“DARF”) or via direct debits from a bank account selected by the taxpayer. However, individuals opting for direct debit payments have until June 10, 2020, to submit their 2019 tax returns in order to be able to pay the total tax amount due via direct debit.
With regard to tax refunds, the Revenue has decided to maintain the previous schedule for the authorities’ payments. Tax refunds for 2019 are scheduled to be paid in five monthly installments, from end-May 2020 until end-September 2020, based on the taxpayers’ filling date.
Due to the difficulties created by the coronavirus pandemic, the Brazil Central Bank decided to postpone the filling schedule for the Brazilian Capitals Abroad Reports (“CBE”).
The Annual Report, related to positions on December 31, 2019, must now be submitted by 6:00pm on June 1, 2020. The Quarterly Report, related to positions on March 31, 2020, must now be submitted between June 15 and July 15, 2020.
The CBE Report is mandatory for individuals or legal entities resident in Brazil who hold assets and or investments outside Brazil greater than or equal to:
Late submission, negligence in reporting, or the report of false, inaccurate, or incomplete information, subjects the violator to the imposition of a fine by the Central Bank of up to BRL 250,000.
Brazilian taxpayers may wish to consult with their qualified tax professionals to make the necessary arrangements for completing their 2019 returns by the new deadlines.
1 To see (in Portuguese) the Brazilian Revenue Normative Ruling n. 1930 with new guidelines for the 2019 Brazil Income Tax Return filling and payment, click here .
2 See (in Portuguese) the Central Bank extension decision (Circular n° 3.995 de 24/3/2020) here and the Central Bank’s press alert (BC adia prazo para entrega da declaração de Capitais Brasileiros no Exterior (CBE)) here.
The information contained in this newsletter was submitted by the KPMG International member firm in Brazil.
To subscribe to GMS Flash Alert, fill out the subscription form.
© 2021 KPMG Tax Advisors-Assessores Tributrios Ltda., a Brazilian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.
Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.