The eSocial Steering Committee of Brazil has issued Resolution 21 which determines that the employer’s and taxpayer’s obligations to start using eSocial are as follows:
I - as of January 1, 2018, for employers and taxpayers that have posted revenue above BRL 78,000,000.00 (seventy-eight million reais) in the year 2016; and
II - as of July 1, 2018, for all other employers and taxpayers.
eSocial is a digital initiative on the part of Brazil’s government to help enhance the enforcement of and compliance with Brazilian labor laws. The creation of this government-built digital reporting platform aims to facilitate the reporting by organizations of various employee-related data, e.g., social security contributions and payroll information.
[BRL 1 = USD 0.30 | BRL 1 = EUR 0.27 | BRL 1 = CAN 0.397 | BRL 1 = GBP 0.23]
While many organizations and taxpayers have been preparing for the launch of the eSocial platform, there have been some delays to the commencement of eSocial due to technical and other issues. However, the Resolution makes clear that the days of submitting employee-related data on paper and to a variety of government departments and agencies will soon end. In due course, organizations and taxpayers will have to submit all data through the single electronic platform of eSocial, and they should therefore take steps to better coordinate their employee data collection and reporting accordingly.
If organizations and taxpayers have not yet adopted systems and procedures for submitting data through eSocial, they should consider discussing such matters with their professional services providers with minimal delay.
1 The eSocial's Steering Committee's Resolution 2, of 30 August 2016, revokes Resolution 1, of 24 June 2015.
COMITÊ DIRETIVO DO ESOCIAL RESOLUÇÃO Nº 2, de 30 de Agosto de 2016: Dispõe sobre o Sistema de Escrituração Digital das Obrigações Fiscais, Previdenciá- rias e Trabalhistas (eSocial).
See the eSocial website.
For additional information or assistance, please contact your local GMS or People Services professional* or one of the following professionals with the KPMG International member firm in Brazil:
tel. +55 11 3940 3269
tel. +55 11 3940 6575
Ana Paula Rennar
tel. +55 11 3940 8136
* Please note that KPMG LLP (U.S.) does not provide labor law services.
The information contained in this newsletter was submitted by the KPMG International member firm in Brazil.
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