Changes to EFD-Reinf: what you need to know 2023

Changes to EFD-Reinf: what you need to know 2023

The Federal Revenue Service recently announced significant changes to the Digital Tax Bookkeeping of Withholdings and Other Tax Information (EFD-Reinf) through Normative Instruction (IN) 2.163/2023. These changes affect the effective and mandatory dates of this accessory obligation, directly impacting companies and service providers across the country. In this article, we will discuss the main changes brought about by this new regulation and how they may impact your business.

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EFD-Reinf deadline postponed

One of the most significant changes concerns the deadline for submitting EFD-Reinf. Before IN 2.163/2023, the deadline for submitting this ancillary obligation was the 15th of each month. Now, the text postpones the deadline for submitting EFD-Reinf to the first working day after the 15th, if the 15th is not a working day, such as Saturdays, Sundays or public holidays. This means that in October, for example, the obligation must be submitted by Monday, October 16, if the 15th is a Sunday.

The aim of this change is to give companies greater flexibility and avoid penalties for late deliveries due to non-business dates, such as public holidays and weekends.

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Services subject to self-retention

IN 2.163/2023 also brings significant changes for services subject to self-retention. From January 2024, services subject to self-retention must be reported by the beneficiary, i.e. the service provider, in event R-4080. This change aims to simplify the declaration process and improve the accuracy of the information provided to the IRS.

With this change, the paying source, which are the clients of the companies subject to self-retention, have been exempted from the information provided for in event R-4020. This benefits companies operating in sectors such as credit card management, meal vouchers, advertising and publicity companies, among others.

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Distribution of profits in EFD-Reinf

Another relevant change brought about by IN 2.163/2023 concerns the rules for profit distribution. Companies exempt from Income Tax (IR) that were required to transmit this information on the 15th of the following month in EFD-Reinf will now have an extended deadline. The new deadline will be the 15th of the second month following the end of the quarter.

For example, the information for the quarter ending in September must be submitted by November 15th. Likewise, information for the December quarter must be submitted by February 15, and so on. This change offers greater flexibility to companies exempt from IR and simplifies compliance with tax obligations.

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Conclusion 

In summary, Normative Instruction 2.163/2023 brought important changes to EFD-Reinf, altering deadlines for submission, responsibilities for self-retention and dates for the distribution of profits. It is essential that companies are aware of these changes and adjust their internal processes to comply with tax obligations properly, avoiding possible penalties. Always be aware of the Internal Revenue Service's updates and stay informed to ensure your business is tax compliant.

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