Payroll Tax Relief

Payroll Tax Relief: A New Opportunity for Companies and Municipalities

In a crucial decision for both public and private sectors, the Supreme Federal Court (STF) extended the payroll tax relief by 60 days, providing extra breathing room for companies and municipalities that have adapted to the new legislation. This measure, published on the Federal Revenue website, paves the way for adjustments in the tax returns of April 2024, ensuring that tax payments are made in accordance with the updated regulations.

Adjustments in Tax Returns:

The Federal Revenue Service advises that companies and municipalities benefiting from the tax relief should amend the DCTFWeb, eSocial, and EFD-Reinf returns for April 2024. The final deadline for this amendment was May 15, ensuring that the collection of taxes due by May 20 is in compliance with the new legislation. Updates to the eSocial calculations were implemented in production on May 18, 2024.

Step-by-Step Guide for Adjustment:

To assist in adapting to the new rules, the Federal Revenue Service provides a detailed guide with specific instructions for companies and Labor Management Bodies (OGMO):

1. Payroll Already Closed in April/2024:
   • Reopen the payroll;
   • Submit event S-1280 with information about the tax relief;
   • Close the payroll again. The system will recalculate the contributions and send the new assessment to DCTFWeb.
2. Payroll Not Yet Closed in April/2024:
   • Submit event S-1280 with information about the tax relief;
   • Close the payroll.

Municipalities with a Population Factor Below 4 (Rate of 8%):

• Reopen and close the payroll again. The system will recalculate the contributions and send the new assessment to DCTFWeb.
• Find out how Gescon can help you: gesconconsultoria-com-br.rds.land/tipos-de-servico-gescon

Adjustments in S-1000:

Before making any adjustments, it is crucial to update event S-1000 to indicate the option for tax relief. Companies and OGMO should use the field {indDesFolha}=[1 – Company meeting the criteria of the current legislation], while municipalities with a population factor below 4 should use {indDesFolha}=[2 – Municipality meeting the criteria of the current legislation].

Benefits of the Extension:

The extension of the payroll tax relief by 60 days provides significant support for companies and municipalities to adapt to changes in the legislation. This additional time allows entities to make the necessary adjustments to their tax returns calmly and accurately, avoiding errors and potential penalties.

Commitment of the Federal Revenue Service:

With these detailed measures and the commitment to continuous support, the Federal Revenue Service aims to ensure that all entities benefiting from the payroll tax relief comply with the new legal requirements. The Federal Revenue’s actions demonstrate the government’s dedication to promoting a fair and transparent fiscal environment, ensuring the correct application of tax rules and contributing to the country’s development.

The extension of the payroll tax relief, coupled with the clear and precise guidance from the Federal Revenue Service, represents a valuable opportunity for companies and municipalities to regularize their fiscal situation and fully benefit from this important measure. By following the established guidelines and using the available communication channels, entities can ensure legal security and peace of mind in their operations, contributing to the strengthening of the Brazilian economy.