• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 9/23/2013

Brazil - Corporate income tax returns, bookkeeping requirements; net-equity guidance 

September 23: Brazil’s tax authorities issued guidance with changes to tax filing requirements, corporate income tax bookkeeping, the tax liability on dividend distributions, and interest on net equity.

The provisions in Instrução Normativa 1.397/13 (16 September 2013) address:

  • A new ancillary tax filing obligation - A digital version of the accounting books and records in accordance to accounting rules in effect prior to the IFRS conversion (old Brazilian GAAP or BRGAAP) must be filed for tax year 2014 in June 2015.
  • Guidance on corporate income tax filing - Details for preparing the new corporate income tax form (introduced May 2013) are to be followed for the tax return filed for tax year 2014 in June 2015.
  • Dividend distributions - Guidance is provided concerning the treatment of dividend distributions in excess of the net income calculated under the former BRGAAP, specifically for Brazilian resident individuals, resident legal entities, and non-residents.
  • Interest on net equity must be calculated based on the old BRGAAP for tax purposes.

Read the September 2013 report (English) (or Portuguese) prepared by the KPMG member firm in Brazil: Tax News: Normative Instruction 1,397

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