Declaration of Tax Incentives, Exemptions, Benefits, and Immunities (DIRBI)

Published in the Official Gazette of the Union (DOU) on June 18, 2024, Normative Instruction RFB No. 2198/2024 establishes the creation of the Declaration of Tax Incentives, Exemptions, Benefits, and Immunities (DIRBI). This new ancillary obligation aims to enhance transparency and the oversight of tax benefits granted to Legal Entities.

Who Must Submit the DIRBI?

The DIRBI must be submitted by all Legal Entities that benefit from the tax incentives listed in the Single Annex of the regulation. These benefits must have been utilized starting from January 2024. Companies opting for the Simples Nacional regime are exempt from this obligation.

Deadlines for Submission

The declaration must be submitted by the 20th day of the second month following the assessment period. For assessment periods covering the months of January to May 2024, the submission must occur by July 20, 2024.

Information to be Declared

Taxpayers must report the amounts of tax credits related to taxes and contributions not collected due to the incentives, exemptions, benefits, and tax immunities utilized. Specifically, for Corporate Income Tax (IRPJ) and Social Contribution on Net Profit (CSLL), the deadlines vary according to the assessment regime:

• Quarterly Assessment: The declaration must be submitted in the month following the end of the quarter.
• Annual Assessment: The declaration must be submitted in December.

Penalties

Failure to submit or delays in submitting the DIRBI will result in penalties calculated based on gross revenue, limited to 30% of the benefits utilized. Penalties are graduated according to the amount of gross revenue, as follows:

• 0.5% on gross revenue up to R$ 1 million.
• 1% on gross revenue from R$ 1,000,000.01 to R$ 10 million.
• 1.5% on gross revenue above R$ 10 million.

Audit and Oversight

All amounts reported in the DIRBI will be audited internally by the Federal Revenue Service, ensuring the accuracy of the information and the correct application of tax benefits. This new obligation aims to reinforce transparency and control over granted tax benefits, providing greater oversight and preventing abuses in the use of tax incentives.

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If you have any questions regarding the submission of the DIRBI, please contact the Crowe Macro Tax team by reaching out to our Director, Alison Fernandes, at [email protected]. We are prepared to assist you in complying with tax obligations!