ECD: What is it, Who should submit it, and How to comply with Digital Accounting Records
Digital Accounting Records (ECD) is an ancillary obligation that constitutes part of the Brazilian Public Digital Bookkeeping System (SPED) and represents a relevant milestone in the Country’s tax modernization process. Regulated by Brazilian Federal Revenue Office (RFB) Normative Ruling No. 2.003/2021, the ECD was designed to replace the bookkeeping previously performed on paper, with digital files, through a digitalized procedure. Upon ECD implementation, traditional printed accounting books, which were previously signed manually by the accountant, were replaced with digital files that were signed electronically. In addition to meeting the requirements of the Brazilian Federal Revenue Office, ECD provides material benefits, such as more agility in processes, greater accuracy in information, and better control of companies’ accounting management. According to RFB IN No. 2.003/21, the following are required to submit Digital Accounting Records: Legal entities taxed based on taxable income; Legal entities taxed based on presumptive profit that distributed profits above the exemption limit; Unincorporated joint venture (SCP), in specific situations; Protected and exempt entities, with revenue exceeding BRL 4.8 million per year; and Companies are required to keep bookkeeping, even if required only by the company. Please note that companies that adopt the Simples Nacional (Unified System for the Payment of Taxes and Contributions by Small Businesses) are exempt, except in specific situations provided for by law. In 2025, the obligation to submit the ECD will continue to follow the criteria established by RFB Normative Ruling No. 2.142/2023, with the deadline ending on June 30. In cases of dissolution, spin-off (whether total or partial), merger, or amalgamation, the ECD must be submitted by all companies involved in the process (including those that were dissolved, split, merged, and consolidated), when applicable, by the successors. The deadline for transmission is the last business day of the third month following the date of the corporate event. The deadline for transmission is established based on the date of occurrence of the taxable event, as described below: I – If the event occurs between January and May, the ECD must be submitted by the last business day of June of the same year; or II – If the event occurs between June and December, the ECD must be submitted by the last business day of the month following the event. The ECD transmission is carried out exclusively through the ECD Validator and Signer Program (PVA), made available by the Brazilian Federal Revenue Office on the SPED portal. This program allows you to generate, validate, digitally sign, and send the file with legal certainty. Nevertheless, simply using the PVA is not enough — the company’s accounting system needs to be properly structured to generate data in accordance with RFB requirements. This means that it is not possible to transmit the ECD without the proper accounting closing of the fiscal year. The system must be able to generate the daily book, ledger, and other accounting statements in a complete, consistent, and verifiable manner. Moreover, ensuring the digital signature with a valid certificate from both the accountant in charge and the company’s legal representative is essential. The lack of an appropriate accounting structure may make delivery unfeasible, generate errors in the file, or even prevent transmission within the legal deadline. Tax-Accounting Bookkeeping (ECF), also part of the Brazilian Public Digital Bookkeeping System (SPED), uses Digital Accounting Records (ECD) information as a basis for calculating Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL). Thus, any inconsistencies or errors in the ECD can generate direct impacts on the ECF, requiring corrections and creating a path for tax-deficiency notices. Submitting the ECD requires not only accounting organization but also mastery of current regulations and the use of systems specially prepared to meet the requirements of the Brazilian Federal Revenue Office. PLBrasil Accounting&Finance offers full support for planning, validating, and submitting the ECD, with qualified experts and technology integrated with SPED. Avoid risks with the Brazilian Federal Revenue Office and ensure your ECD is submitted safely and efficiently.
Supreme Court declares unconstitutional the requirement of CPOM by the Municipality of São Paulo
The Federal Supreme Court (STF) declared incompatible with the Federal Constitution the imposition of registration, established by the Municipality of São Paulo, for service providers established in other municipalities. Supremo Tribunal Federal declara inconstitucional a exigência do CPOM pelo Município de São Paulo Although the decision of the Federal Supreme Court deals specifically with a legal provision in the municipality of São Paulo, in RE 1167509, the STF recognized the General Repercussion of the topic. By the RE 1167509, the constitutionality of Article 9 caput and §2 of Law No. 13,701 / 2003 of the Municipality of São Paulo was being discussed. . The caput of article 9 of the São Paulo law provides that the service provider that issues an invoice authorized by another Municipality, for an applicant established in the Municipality of São Paulo, is obliged to proceed with its registration in the São Paulo City Hall, as required by the municipal regulation. Paragraph 2 of Article 9 provides that legal entities established in the Municipality of São Paulo must withhold the ISS amount if their service provider not located in the Municipality of São Paulo had not registered in the register referred to in the caput of the Article 9. Ou seja, o STF discutiu a constitucionalidade do CPOM (Cadastro de Empresas de Fora do Município) como é chamado na cidade de São Paulo. And by 8 votes to 3, in the judgment of RE 1167509 the STF found article 9 caput and § 2 of Law No. 13,701 / 2003 of the Municipality of São Paulo to be unconstitutional. The STF also established the following thesis: “It is incompatible with the Federal Constitution to provide for the mandatory registration of a service provider not established in the territory of the Municipality with the Municipal Administration and the imposition of the Withholding Tax on Services by the Municipal Administration. – ISS when the accessory obligation is not fulfilled ”. In this sense, we will no longer be able to withhold the ISS due to the lack of registration with the CPOM, however, the respective City Halls continue to oblige the taxpayer (service taker) to make the withholding when there is no respective registration. Therefore, for taxpayers to be able to refund the ISS paid due to “fiscal wars”, it is necessary to file an administrative proceeding with the City Halls. PLBrasil Accounting&Finance provides accounting, tax, financial and payroll advisory services. For further information please contact us through the channels below: +55 (11) 3292-6233 bpo@plbrasil.com.br
Resolution No. 152/2020 extends the deadline for payment of federal taxes of Simples Nacional
On the 19th, the Managing Committee of Simples Nacional (CGSN) approved Resolution CGSN nº 152, part of the package to minimize the economic impacts of the coronavirus pandemic. This measure extends the deadline for payment of taxes within the scope of Simples Nacional and is also valid for Individual Microentrepreneurs (MEI). In this way, the deadlines for payment of federal taxes of the Program Generator of the Document of Collection of the Simples Nacional – Declaratory (PGDAS-D) and the Program Generator of the DAS for the MEI (PGMEI), were extended to: Calculation Period of March 2020, with original maturity on April 20th, 2020, will mature on October 20th, 2020; Calculation Period April 2020, with original maturity on May 20th, 2020, will mature on November 20th, 2020; and Calculation Period May 2020, with original maturity on June 22nd, 2020, will mature on December 21, 2020. PLBrasil Accounting&Finance provides accounting, tax, financial and payroll advisory services. For further information please contact us through the channels below: +55 (11) 3292-6233 bpo@plbrasil.com.br
Attention to the Escrituração Contábil Fiscal (ECF) delivery deadline
The fiscal accounting bookkeeping (ECF) replaces the extinct Legal Entities Economic-Fiscal Information Declaration (DIPJ) having the delivery date stablished for the last working day of July to the subsequent year of the bookkeeping period of the Sistema Público de Escrituração Digital (Sped), which the deadline at the year of 2019 is July 31st. Mandatory obligation All the legal entities, including entities which have immunity and exemptions, actual profit method, arbitrated profit, assumed profit, with exception of: i. Legal entities that opted for the Simplified Taxation System (Simples Nacional); ii. Public bodies, municipalities and public foundations; iii. The dormant entities, which are the ones that do not have any operational or non-operational activity, assets and financial, including investments in the financial or capital market throughout the calendar year. In case of dormant entities, they must present the Federal Tax Credits and Debts Declaration – DCTF, relative to January of each calendar year. PLBrasil Accounting&Finance provides accounting, tax, financial and payroll advisory services. For further information please contact us through the channels below: +55 (11) 3292-6233 bpo@plbrasil.com.br
ISS Code Automatic Exclusion – São Paulo City-Hall
In view of the implementation of a new securities filing system of São Paulo City-Hall (PMSP), the city´s fiscal department is automatically executing the Service Tax (ISS) codification according to the National Economic Activities Classification (CNAE), indicated in the Corporate Taxpayer’s Registration Number (CNPJ). Formerly, the procedure was made based on the corporate objective described in the company´s by-laws or by the articles of association. Following this new procedure, the PMSP system is automatically performing the exclusion of other service codes previously held by the company, since it is understood that such codes are not compatible with the CNAE indicated in the CNPJ. Thus, and as a preventive measure and intending to avoid any problem in the future, in the event that you perform any activity that might generate ISS, we advise you to proceed an immediate verification of the codes existing in the filing card (FDC) of PMSP, which can be issued through this link, in order to detect whether PMSP has excluded any ISS code that is essential to fulfill the accessory obligations, such as the issuance of tax invoice for services, etc. Example on how to find the ISS codes in our FDC: At last, once the ISS code exclusion is identified, PLBrasil is at your disposal to proceed with any regulation that may be required. In case you have any further questions, please, do not hesitate to contact us. PLBrasil Accounting&Finance provides accounting, tax, financial and payroll advisory services. For further information please contact us through the channels below: +55 (11) 3292-6233 bpo@plbrasil.com.br