SISCOSERV has flexible deadlines to reassure companies about possible penalties at this time
As has happened with the Income Tax (Individual and Legal Person), now it's time for the SISCOSERV have a flexible deadline. The action demonstrates that the Ministry of Economy, through the Special Secretariat for Foreign Trade and International Affairs, is sensitive to the moment companies are going through during the effects of the Coronavirus.
How are the SISCOSERV Deadlines?
THE Joint Ordinance No. 25, published on 07/01/2020, says, in summary, the following:
"Art. 1 The deadlines for providing information regarding transactions are suspended from July 1st to December 31st, 2020…” in SISCOSERV. Going into effect today.
What changes in Practice?
The Ordinance suspends the deadlines, but no suspend the obligation.
In practice, what we have is the fact that, within that period, there will be no penalty for late delivery. However, the Ordinance does not release companies to deliver the SISCOSERV.
After this suspension period, the most likely thing is that things will “return to normal”.
So what can happen in January 2021, after this suspension of deadlines? And how are the records of operations for that period?
If there is no new suspension in January 2021, possibly companies will have until April 2021 to declare January 2021 operations and, if no specific guidance is published, this will also be the deadline for operations between July and December 2020.
What's the benefit then?
In practice, the benefit is that companies feel confident that there will be no penalty if they are unable to make the declarations.
Is it worth suspending the declaration?
Only if your company is really unable to make the declaration during this period. Otherwise, it would just be postponing and accumulating work for after the suspension period.
And how are the operations made until June 30, 2020?
Transactions that took place until June 30, 2020 follow with normal deadline, that is, three months after its beginning, and thus must be declared in September.
The operations that took place between July and December 2020 stay with the declaration deadline in SISCOSERV suspendedat least until December 31, 2020.
As with the deadline for the Income Tax declaration, this year, WTM DO BRASIL understands that the Ministry of Economy wishes to reassure and make life easier dthe companies, due to the delicate moment that affects us globally.
However, it is important to guide the safest measure is to continue making records in SISCOSERV, considering that, as soon as the suspension loses its effect, the eventual impoundment of the records of the second semester may create unnecessary inconvenience.
What will WTM do with its customers and how does it guide other companies?
- Exchange Customers WTM Finance: For companies that carry out the exchange closing of their Invoices through our WTM Finance Service:
- Absolutely nothing is going to change. We we will continue to make your statements as they occur, normally even before the usual deadline.
- IMPORTANT: Remembering that customers who make payments or receipts of their Invoices via WTM Finance and WTM Pay, already receive the Siscoserv Registry FREE, at no additional cost.
- If you still don't use this service Click here to know more details.
- WTM Partner Customers: Customs Broker, Accountant, Trading and other WTM partners:
- Nothing is going to change. We will continue to make your statements as partners make documentation available, normally within the usual timeframe.
- WTM SISCOSERV customers: For companies using the WTM do Brasil SISCOSERV Outsourcing Service:
- Nothing is going to change. We recommend that our customers continue to make documentation available normally, preferably within the usual timeframe, to avoid accumulation and inconvenience at the beginning of the next year.
- System Clients for WTM's Siscoserv: For companies using the WTM do Brasil Siscoserv Registration System:
- We recommend that you continue making your registrations usually, preferably within the usual deadline, to avoid accumulation and inconvenience at the beginning of the next year.
- Other companies not yet WTM customers:
- For those who ALREADY MAKE their registrations: We recommend that you continue making your records usually, preferably within the usual timeframe, to avoid accumulation and inconvenience at the beginning of next year.
- for those who STILL DO NOT register with SISCOSERV We have an important tip:
An excellent opportunity to regularize your records
This message is for YOU HAVE NOT REGISTERED ON SISCOSERV YET.
WTM DO BRASIL believes that this is the Perfect moment to bring the statements of the last five years up to date.
This is because we believe that, after the end of the suspension and the re-establishment of normal conditions in the country, it is certain that the RFB will once again monitor compliance with tax obligations related to foreign trade in services.
Those who are still in default will have, at this moment of suspension of deadlines, six months of tranquility to settle their tax obligations, starting next year with a little more tranquility.
- WTM has a service and special conditions to update operations that have not yet been declared.
Briefly, how would we do an “Informal Orientation”?
It is the same as postponing the deadline for the income tax declaration, in practice we gain more time, without a fine for the extra period, but if it is possible to deliver on time, it is better to continue making the delivery normally.
Other Risks and Consequences of this Ordinance
What will BANKS do?
Here we will have a BIG PROBLEM between companies and banks.
For internal compliance, financial institutions generally REQUIREMENTIN the documentation of the operation, including the registration and proof of delivery of the Declaration in the SISCOSERV, for cases where there is ANY BENEFIT or support mechanism, how, for example, in the AGENT COMMISSIONS IN THE EXPORT OF GOODS AND SERVICES.
This is because, recently, the Ministry of Economy itself published Nonormative, requiring the Declaration in SISCOSERV as conditiondog for non-withholding of IRRF.
Therefore, the banks passfrog to require proof of registration more frequently.
Here we have anote important.
This suspension open one DANGEROUS PRECEDENT for banks, but which will have an effect on reputable companies. This because malicious people and companies could if usedair gives SUSPENSION OF DEADLINES to try to convince the banks that they can send values to the ABROAD WITHOUT WITHHOLDING INCOME TAX AT SOURCE, in such a way that the banks, in its turn, will be between the difficult decision of:
- Not carrying out the operation (normally the risk appetite of banks is very low) and leaving the (reputable) customer very dissatisfied
- Require, even with the suspension of term, that the client makes the declaration to guarantee his right (not least because the ordinance does not deal with any exception). This would certainly generate a conflict and non-conformity from customers.
- Carry out the operation and establish a level of contingency control so that, after the period of suspension of deadlines, it can demand proof of declarations for customers.
This is one more reason for you to carry out these exchange operations with us (as well as Credit card and other means of payment), through the WTM Finance, where we do the Exchange and we have also at no additional cost the operation of Registration at Siscoserv, so we guarantee your right to make the remittance, without withholding IR at source and without current or future stress.
What is the Best Solution?
And if you could:
- No more worrying about Siscoserv Records
- Have everything declared up to date
- And have no cost for it?
Yes, it is possible!
In recent months we have launched new services: the WTM Finance it's the WTM Pay. Just migrate your Invoice payments and receipts to WTM, and we'll take care of Siscoserv for you, in addition to taking care of the calculation and collection of taxes and guiding you on how to do business abroad more safely, considering tax agreements, local taxes , bank fees and everything else that can impact the cost of your operation.