COFIS Executive Declaratory Act No. 60/2015: Approval Of The New Manual For Completion Of The Tax And Account Digital Bookkeeping (ECF) With The Inclusion Of The Return Created By Provisional Measure No. 685/2015

Keywords: COFIS Executive Declaratory Act, taxation, Brazil

COFIS Executive Declaratory Act (ADE) No. 60/2015, published in the Official Gazette on August 28th, 2015, approved the new Manual for Completion of the Tax and Account Digital Bookkeeping (ECF) and included the Return created by Provisional Measure No. 685/2015.

The Return of Information related to Relevant Transactions ("DIOR"), previously called "Return of Tax Planning - DPLAT" by the Brazilian Federal Revenue Service, was included in Forms Y700, Y710, Y720 of the ECF.

Among the information that has to be provided by means of the DIOR, we highlight:

Period of the group of transactions that contains acts or facts related to the DIOR; Calendar years relating to the savings expected by the acts and facts reported in the DIOR; Transactions between dependent or independent legal entities located in Brazil or abroad, with the indication of the tax status of any foreign entity - e.g., if the foreign entity is located in a tax heaven or in a jurisdiction with a privileged tax regime, as defined by Brazilian tax laws; Any corporate restructuring; Creation of deferred assets, liabilities with third parties or asset reductions; Reduction of the calculation basis of any tax levied in Brazil as a result of transfers overseas; and Brief description of the facts, legal basis and business purpose of the group of transactions reported in the DIOR. In addition, all federal taxes involved in the tax planning have to be indicated in the DIOR according to the List contained in Form Y710, as follows:

IRPF - Individual Income Tax; IRPJ - Corporate Income Tax; CSLL - Social Contribution on Net Profits; WHT - Withholding Tax; PIS and COFINS - Taxes on Revenues; IOF - Tax on Financial Transactions; Import and Export Taxes; Simplified Federal Tax Regime ("Simples Nacional"); Social Security Contributions; CIDE-Fuels - Contribution on the Economic Domain based on fuel; IPI - Tax on Industrialized Products; and Other taxes. It should be noted that the Federal Revenue Service's Secretary, Mr. Jorge Rachid, informed, during an event held with taxpayers, that the above mentioned Return would only be compulsory from 2016...