The Brazilian Federal Revenue Service has implemented new regulations to enhance efforts against tax evasion and fraud. Through Normative Instruction No. 2,219/2024, published in September 2024, the reporting obligations to the e-Financeira system have been expanded and took effect on January 1, 2025.
New Obligations
Under the new rules, credit card operators and payment institutions that handle financial transactions must submit semi-annual reports to the Federal Revenue Service for transactions exceeding the following monthly thresholds:
- Individuals: Transactions over BRL 5,000.
- Legal entities: Transactions over BRL 15,000.
The reporting encompasses transactions made via credit cards, payment apps, digital banks, transfers, and receipts such as Pix. Department stores, wholesalers, and retailers offering credit services are also subject to the regulation, even if they do not directly provide loans.
Reporting Deadlines
Transactions must be reported semi-annually:
- By the last business day of August: Data for the first semester (January to June).
- By the last business day of February: Data for the second semester (July to December).
The first data submission is due in August 2025, covering financial transactions conducted between January and June 2025.
The Federal Revenue Service emphasized that this initiative aims to promote financial transparency and align Brazil with international commitments in the fight against tax evasion. Collecting and analyzing these data will enable tighter control of tax revenues and the detection of fiscal inconsistencies.
Complementary Developments
Shortly before the Normative Instruction was published, the Federal Supreme Court validated a regulation from the National Council of Fiscal Policy (Confaz) requiring financial institutions to provide state governments with information about transactions conducted via Pix, credit cards, and debit cards. This decision seeks to strengthen oversight of ICMS collection but has sparked debates about its impact on banking confidentiality.
Recommendations for Businesses and Taxpayers
Businesses and taxpayers should closely adhere to the new legislation to avoid inconsistencies in fulfilling ancillary obligations. It is recommended to review internal processes and consult a tax attorney for tailored guidance.
The adoption of these measures underscores the importance of tax planning and fiscal compliance, ensuring security and preventing tax liabilities.