Normative Instruction No. 1,863, which makes provisions relating to the National Register of Corporate Taxpayers (CNPJ), was published in the Official Gazette of the Union on December 28, 2018. The administrative act completely revoked the previous regulations, coming to inform taxpayers about the procedures and obligations related to the CNPJ.
The main modification provided by the current regulation was the extension of the period stipulated in the revoked IN RFB Nº 1,634/2016 to indicate the final beneficiary of national and foreign entities.
Article 53 of the referred to regulation states that: “Entities existing before the date of publication of this Normative Instruction that are obliged to inform their final beneficiaries shall do so within 180 (one hundred and eighty) days as of the date of publication of this Normative Instruction.”
Therefore, companies already duly organized in Brazil up to the publication of the new regulation will have until June 26, 2019 to provide the indication of the final beneficiary in the CNPJ.
“The extension of the deadline brings relief to taxpayers, since many domestic and foreign companies find it very difficult to define which natural person would have significant control or even define their actual existence, as in cases of companies indirectly owned by private equities” says Raphael Zaroni, a partner at Zaroni Advogados.