On March 15, 2016, Normative Ruling RFB No. 1,627/2016 regulating the Special Regime for Monetary and Tax Regulation (“RERCT”) was published in the Official Gazette.
Adherence to RERCT will be presented by the taxpayer or their legal representative electronically though the delivery of the “Monetary and Tax Regulation Return” (“DERCAT”). The use of a digital certificate is mandatory, and DERCAT will be available at e-CAC from April 4th, 2016 onwards.
In addition to the filing of DERCAT, the taxpayer must pay an income tax at a rate of 15% of the total assets and rights reported (in Brazilian Reais). Additionally, a fine of 100% of the value of the income tax must be paid in order to be in full adherence with the Special Regime.
The filing of DERCAT, as well as the payment of the income tax and fine must occur before October 31st, 2016.
Taxpayers can file only one DERCAT, which must contain all assets and rights that are to be regulated.
The filing of false documents or false returns will exclude the taxpayer from RERCT, and will impose the payment of taxes, penalties and interest levied (deducting the amounts previously paid). Additionally, Authorities have the right to charge any civil, criminal and/or administrative penalties applicable.
In the case of taxpayer exclusion from RERCT, investigation procedures related to the source of the assets and rights reported can only be initiated or continued if there is any documented proof other than the Return filed to Tax Authorities.
Finally, it is important to note that an appeal may be filed against the decision that excludes the taxpayer from RERCT within 10 days from the date the notification was received. An appeal may also be filed against the decision that declared the inclusion of rights or assets in RERCT null due to the lack of observance of the requirements established (deadline is also 10 days from the date the notification was received).