When talking about the cost of doing business in Brazil, the tax burden and bureaucracy are undoubtedly relevant components to be taken into account.
In a study conducted by the World Bank, companies in Brazil spend approximately 2,000 hours per year fulfilling ancillary obligations. Some companies have a department with a team of employees dedicated solely to this.
In a simplistic view, one might believe that such demand generates a considerable number of indirect jobs; however, upon closer inspection, it is possible to note that the company fails, for example, to invest in its operational activity, to generate new wealth and foster the economy, directing efforts and revenues to comply with a multitude of rules imposed by the Public Administration.
And this month, another one has emerged! Taxpayers who benefit from tax benefits must inform the Federal Revenue Service, through a specific electronic declaration, of the type of benefit they are entitled to and the corresponding credit amount.
Obviously, the legislation introduced additional rules so that taxpayers can enjoy the benefits, as well as steep penalties for those who fail to comply.
The Brazilian Federal Revenue Service has addressed this issue in more detail through Ruling No. 2198/2024, and taxpayers have until July 20th to submit the DIRB (Declaration of Incentives, Waivers, Benefits and Immunities of a Tax Nature). After this date, the DIRB must be submitted monthly.
Although the filing deadline is still far away, it is recommended that these taxpayers anticipate and review the terms of their tax benefits, also paying attention to the requirements established by law.
