Legal entities in Brazil are required to present the DIPJ to the Receita Federal, a statement containing their economic and tax information. Know in this article who exactly needs to fill up this form and what it should contain.
Companies and Federal Tax Statements
In Brazil, legal entities are required to present several monthly and annual statements regarding taxation to the Receita Federal. The most important of these forms are known by the acronyms below:
DIPJ: Declaração de Informações Econômico-Fiscais da Pessoa Jurídica (Statement of Economic and Tax Information of Legal Entities)
DIRF: Declaração do Imposto Retido na Fonte (Withholding Tax Report)
DIMOB: Declaração de Informação sobre Atividades Imobiliárias (Information Report on Real-Estate Activities)
DASN: Declaração Anual do Simples Nacional (Simples Nacional Anual Statement)
DITR: Declaração de Imposto sobre a Propriedade Territorial Rural (Declaration of Tax on the Territorial Rural Porperty)
DCTF: Declaração de Créditos e Débitos Tributários Federais (Federal Tax Credits and Debits Statement)
DACON: Demonstrativo de Apuração de Contribuições Sociais (Statement of Assessment of Social Contributions)
In this article, we will give further information about the DIPJ. In the same logic that individuals in Brazil have to present the Income Tax Return through the DIRPF form every year, companies also have to fill the DIPJ guide and send it to Receita Federal annually. The DIPJ contains information about the following taxes and contributions:
- IRPJ (Corporate Income Tax)
- CSLL (Social Contribution on Net Profit)
- IPI (Tax on Manufactured Products)
Who must present the DIPJ?
All private law legal entities domiciles in Brazil must present the DIPJ, including the ones that are exempted from paying the Income Tax. Individuals assimilated to legal entities (such as some independent contractors) also must present the statement.
Branches and subsidiaries of foreign companies, consórcio administrators for acquisition of goods, cooperatives, public companies, semi-public companies and sales representatives working for himself and not for third parties are also obliged to send the DIPJ to Receita Federal. The legal entities that are released from presenting the DIPJ are:
- Micro and small companies which have opted for the Simples Nacional taxation arrangement (they have to fill up the DASN form instead)
- Inactive companies
- Departments and agencies of the public administration, autarchies and public foundations
DIPJ contains what kind of information?
Preparing the DIPJ requires a lot of planning, organization and information. Among the information required while filling up the statement are:
- Data of the declaring company and of its legal representative
- Detailed composition of the G/L accounts of assets, liabilities and income, expanding the information in detail, including the portions not deductible. Here, it is recommended to transcribe or export the balance sheet of the corporation to a spreadsheet, linking the accounts in the trial balance with their respective lines of DIPJ, thereby maintaining an adequate memory calculation.
- In the composition of the Lucro Real it is important to Actual Profit Determination Book (LALUR or e-LALUR) and its respective auxiliary memories, whose transcription will be performed in the DIPJ. It is recommended to keep a copy of these documents with the statement conveyed. The same care and diligence applies in relation to the CSLL.
- For companies subjected to the Transitional Regime (RTT) it is important that the Fiscal and Accounting Control of Transition (FCONT) be transmitted in advance, in order to enable the convergence adjustments required by DIPJ.
- Regarding the Tax on Manufactured Products (IPI), besides showing the calculation of the IPI, taxpayers need to provide information about the main entrances of inputs and goods and their suppliers, as well as major outputs of goods, products and inputs and their recipients.
- Other detailing will be required to the taxpayers, such as potential investments in tax incentives, transactions subject to the determination of transfer prices, equity interests abroad, financial statements, economic data, and other information of general nature.
The economic data contain, among others:
- Identification of partners or owner
- E-commerce operations
- Royalties received from Brazil and abroad and royalties paid to beneficiaries in Brazil and abroad
- Earnings related to services, interests and dividends received from Brazil and abroad
- Payments or deliveries in respect of services, interest and dividends to beneficiaries in Brazil and abroad
- Expenditure on technological innovation and development
- Training of IT and digital inclusion;
- Use of special schemes (Reps, Recap, Padis, or PATVD Reidi)
- Information from companies located in specific areas (Industrial Pole of Manaus and Western Amazon, Export Processing Zones (EPZ) and Free Trade Areas (FTAs)
- Income received from abroad or from non-residents in Brazil
- Payments remitted abroad to non-residents or foreigners
- Breakdown of sales revenue of establishments by economic activity
- Sales to export trading with the specific purpose of exportation
- Breakdown of exports from export trading
- Statement of Income Tax, CSLL and Social Security contributions withheld at source.
- Donations to political campaigns
- Assets abroad
- Income from officers, directors, partners or owner
- Income from managers and directors - immune or exempt
- Permanent participation in affiliates or subsidiaries
- Funds/Investment Clubs
- Participation in consórcio of companies
- Information of companies that opt for Refis
- Information of companies that opt for Paes
How is the DIPJ sent to Receita Federal?
As many other tax procedures in Brazil, the DIPJ’s process runs online. The taxpayers have to download a software in the Receita Federal website, filling the forms with the information required, and using the same system to send it to the Receita Federal.
What happens if I don’t present the DIPJ?
Sending the DIPJ form to the Receita Federal is a mandatory procedure for the majority of the companies domiciled in Brazil. If a company send the DIPJ after the deadline established by the Receita Federal, commit any errors or omit information while filling up the forms, shall be punished with a fine.
If the company simply do not present the DIPJ, it will be notified by the Receita Federal to do it in up to 10 days. The company will also receive a fine that will keep increasing until the statement is properly sent.