Tax Compliance in Focus: Trends 2nd Half of 2023

We are already in the second half of 2023 and it is crucial that companies are fully aware of their tax obligations and the deadlines to be met in order to achieve the necessary tax compliance.

In addition to discussions around tax reform and changes in the national fiscal landscape, there are other trends and perspectives that deserve our attention.

The agenda of tax obligations and the deadlines established by the tax authorities, for example, plays a fundamental role in the tax movement of companies in the country.

It is essential that companies are aware of these obligations in order to meet their commitments and achieve the necessary tax compliance.

In this article, we will explore the national tax landscape and discuss the trends that should shape the second half of 2023.

Keep reading!

Impacts of the Tax Reform Proposal: Preparing for Significant Changes

One of the most relevant issues currently highlighted is the proposed tax reform.

With the return of discussions on projects already advanced in the National Congress, such as PEC 45/2019, it is evident that substantial changes can occur in the taxation system, affecting sectors related to the sale of products and provision of services.

The proposal aims to create the Tax on Goods and Services (IBS), which will replace several existing taxes, such as PIS, COFINS, IPI, ISS and ICMS. This simplification in calculating taxes and ancillary obligations could have a significant impact on companies.

However, although a transition period of ten years is promised for the complete implementation of the IBS, companies need to prepare now for the structural changes that are to come, especially in the face of the intense digitalization and automation of tax activities.

Many companies currently strategically distribute their operations in different states, taking advantage of tax benefits and reducing the tax burden of their activities. However, this strategy may need to be reassessed with the implementation of IBS.

ICMS: Debates, Perspectives and Opportunities

Another relevant point to observe concerns the maintenance of reduced taxation on fuels.

This issue is being discussed at the National Council for Finance Policy (Confaz), the body responsible for addressing policies related to ICMS. The decision to maintain or not this reduced taxation will have a direct impact on ICMS collection in the states.

Some states, such as Paraná, Rio de Janeiro, Alagoas, Amazonas, Pará, Piauí and Sergipe, are already taking measures to compensate for possible budget deficits, such as increasing ICMS rates and reducing previously granted tax incentives.

This change, in addition to requiring an adjustment in the tax strategy of companies, aiming at reducing the tax burden, can also create opportunities for companies to operate regionally. They can take advantage of the possibility of operating locally with a lower tax burden, which offers greater flexibility and competitiveness.

Tax Reform: Preparing for a New Tax Reality

In the long-awaited second half of 2023, a trend that is gaining prominence in the tax compliance scenario is the long-awaited tax reform. The Working Group (WG) of the Chamber of Deputies has just presented innovative proposals that promise a significant change in the Brazilian tax system.

The report highlights the adoption of the dual Value Added Tax (VAT) model, covering federal and state/municipal taxes. In addition, the text proposes the introduction of "cashback" as an innovative form of tax refund, although details about its operation and target audience are yet to be revealed.

In this scenario of transformation, it is important to point out that the tax reform report still does not specify the exact number of VAT rates, nor which sectors will receive differentiated treatment.

However, with the proposed changes, four sectors will benefit from special regimes:

1. Fuels: Single-phase charging will be implemented at refineries, eliminating taxation throughout the production chain. This measure aims to combat tax evasion in this sector and bring more transparency.

2. Financial System: The financial sector will have a special VAT payment regime, based on your global earnings. This will avoid cost increases across the economy from taxing each individual operation, spurring efficiency and competitiveness.

3. Insurance Industry: Like the financial system, the insurance industry will also be subject to VAT payments based on its global earnings, instead of taxing each transaction individually. This will bring simplification and fairness to the tax system for the sector.

4. Civil Construction: Civil construction will have its own model of work triibutation, adapted to their particularities. This approach seeks to simplify the tax system for the sector, promoting fairer and more efficient taxation.

Faced with the long-awaited tax reform proposals, companies must prepare to face important changes in the tax scenario.

It is essential that they are ready to deal with the challenges and take advantage of the opportunities that will arise in the second half of 2023.

Ensuring tax compliance and strengthening your market position will be critical to success in the new tax landscape.

Get ready for a new fiscal reality and stand out!

Second Semester Tax Agenda: Meeting Your Tax Obligations

In addition to the important discussions on tax reform and fuel taxation, it is essential to be aware of the specific tax obligations that apply to the second half of 2023.

In the month of July, in particular, several obligations have specific deadlines for delivery. Among them, stand out:

10th - Submission, by the Municipality, of the list of all permits for construction and residence permits granted.
14th - EFD-Contribuições – Digital Tax Bookkeeping of Contributions levied on Revenue. – Contribution to PIS/Pasep and Cofins – Legal Entities subject to Income Tax taxation. – Social Security Contribution on Revenue – Legal Entities that develop the activities listed in arts. 7 and 8 of Law No. 12,546, of 2011. (See Normative Instruction RFB No. 1,252, of March 1, 2012)

• Day 14 - DCTFWeb - Statement of Federal Social Security Tax Debts and Credits and of Other Entities and Funds
• 20th - PGDAS-D – Simples Nacional Collection Document Generator Program
• Day 21 - DCTF Monthly - Statement of Federal Tax Debts and Credits - Monthly
• Day 31 - DME - Statement of Transactions Settled with Cash
• Day 31 - DOI - Declaration on Real Estate Operations
• Day 31 - ECF - Tax Accounting Bookkeeping

In addition to these obligations, it is important to remember that there are also state and municipal obligations specific to each region.

Keep in mind that these are just some of the tax obligations that may apply in the second half of 2023. It is essential to consult the specific rules and regulations for your area of activity and ensure compliance with all obligations within the established deadlines.

Staying in tax compliance is essential to the success and sustainability of companies. So be prepared, stay informed and fulfill your tax agenda responsibly.

By doing so, you will ensure you have a solid foundation for your business and avoid future problems with the tax authorities.

It is important to highlight that Normative Instruction RFB nº 2.133/2023 was published, which promotes changes in Normative Instruction RFB nº 2.043/2021. This update extends the deadline for the mandatory submission of EFD-Reinf R-4000 series events to September 21, 2023.

ONESOURCE Tax One: Simplify your Tax Management with Automation and Efficiency

In this second half, the use of automation tools for tax management has emerged as a necessity for companies in search of new strategies.

According to a survey by Deloitte, 88% of the companies surveyed already adopt automation in their tax operations. However, only about 10% analyze supplier data with the tax authorities, while the majority only automate invoices and some tax obligations.

It is in this context that ONESOURCE Tax One, from Thomson Reuters, stands out as a complete solution that simplifies and automates processes, integrates data and provides accurate reports, allowing companies to face the challenges of tax complexity more efficiently.

With seamless integration into existing systems, ONESOURCE Tax One reduces errors, increases efficiency and minimizes non-compliance risks. In addition, it adheres to the highest security standards, reliably ensuring tax compliance.

The rapid deployment of the solution reduces the impact of transitioning between systems, providing greater efficiency to the process.

Simplify your tax management, gain efficiency and stay compliant with ONESOURCE Tax One. Find out how this solution can boost your business.

Leverage your Tax Management with ONESOURCE Tax One - Ensure Tax Compliance and Growth

If you are looking for efficient tax management and significant results for your business, ONESOURCE Tax One is the perfect solution. Developed by Thomson Reuters, a world leader in tax solutions, it offers a number of benefits that will revolutionize your tax compliance.

With ONESOURCE Tax One, you will experience management optimization through the automation of tax tasks and processes, in addition to data integration and provision of

and accurate reports.

That means more efficiency, fewer mistakes, and the ability to focus your resources on the strategic activities that drive competitiveness and growth.

ONESOURCE Tax One is always up to date with the constant changes in tax legislation, ensuring that your company correctly fulfills all tax obligations and avoids fines and penalties arising from non-compliance.

And to make your journey even smoother, Vottax, an official partner of Thomson Reuters, is ready to support you throughout the process. With our tax compliance expertise, we can help you implement and make the most of the potential of ONESOURCE Tax One, aligning it to your specific needs.

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