Brazil published Normative Instruction No. 2.216 in the Official Gazette, on 5 September 2024, which updates and supersedes the annex of Normative Instruction No. 2.198 from 17 June 2024 (Declaration of Incentives, Waivers, Benefits, and Immunities of Tax Nature).
Legal entities governed by private law, including consortia, must submit the Declaration of Incentives, Waivers, Benefits, and Immunities of Tax Nature (Dirbi) through their parent establishment.
Under Simples Nacional, exemptions apply to micro-enterprises and small companies, except those paying the Social Security Contribution on Gross Revenue (CPRB), Individual Microentrepreneurs, and new legal entities.
Normative Instruction No. 2.198 outlines the declaration requirements and procedures for the new reporting obligations established by Provisional Measure No. 1.227 of 4 June 2024 concerning legal entities receiving tax benefits. Legal entities must submit an electronic declaration (Declaração de Incentivos, Renúncias, Benefícios e Imunidades de Natureza Tributária – DIRBI) to the Federal Revenue Department (RFB) detailing the tax benefits received and their amounts.
Initially outlined in the annex of Normative Instruction No. 2.198, taxpayers were required to report 16 different tax benefits. However, according to the updated annex of Normative Instruction No. 2.216, this number has increased to 43 tax benefits that need to be reported.
The DIRBI must be submitted by the 20th of the second month after the calculation period, which can be quarterly or annually. For 2024, details on tax benefits for January to August must be submitted or corrected by 20 October 2024, as stated in Normative Instruction No. 2.216.
