This document summarizes new Brazilian tax filing obligations for cross-border services and intangible transactions performed with Brazilian residents according to Normative Instruction IN1277. It outlines reporting requirements for services provided to or taken from foreign entities, intangible transactions, and other transactions that may impact net worth. It provides the deadlines and schedule for filing transaction reports either 180 days after the event or by the last working day of June for the previous year's transactions. It also describes the process for online filing through the SISCOSERV system and penalties for late or non-compliant filings.

1. SISCOSERV
Integrated System of Foreign
Service Trade
Normative Instruction IN1277, Brazilian Government

2. SISCOSERV
New tax filing obligation applicable to overall
cross-border services and intangibles
transactions performed with Brazilian
residents, as well as other transactions that
may result changes in net worth.

3. SISCOSERV
Reporting requirements
a) services rendered to foreign entities
b) services taken from foreign providers

4. SISCOSERV
Reporting requirements
c) Intangibles
General licensing, technological transfer
agreements related to technical and
scientific support, assignment of know
how, franchising agreements, natural
resources exploitation, access to genetics
resources, traditional know how
rights, including computer software
acquisition.

5. SISCOSERV
Reporting requirements
d) Other transactions that may result
changes in net worth
Food supply, Finance and Operating
leases, Franchising and Factoring.

6. SISCOSERV
Reporting requirements - DOCUMENTS
• Service agreements ( rendered or hired ).
Extended to any contracts related to
intangibles, and other transactions mentioned in
previous slides;
• Revenues arisen from services, intangibles and
other transactions, if it happens after services
rendered ( ex. invoices or equivalent document);
• Payments arisen from services, intangibles and
other transactions ( ex. foreign exchange
contracts);
• Transactions records ( services and others ).

7. SISCOSERV
• When?
DEADLINE
a) 180 days following the event.
Extension valid until 12/31/2013
only. After that, deadlines will be 30
days from the date the transaction
occurs.

8. SISCOSERV
• When?
DEADLINE
b) Last working day of June of the
following year after the cross-
border transaction carried out by
the entity domiciled in Brazil.

9. SISCOSERV
• When?
DEADLINE
Note : When reporting transactions
of services, intangibles, and others,
started but not concluded before
the filing dates shown in the table,
the starting date must be the one
shown in the SCHEDULE.

10. SISCOSERV
• When?
Schedule– Triggering Event
• Chapters 1, 7 e 20 => 1/08/12;
• Chapters 3, 13, 14, 21 e 26 => 1/10/12;
• Chapters 2, 10 e 18 => 1/12/12;
• Chapters 9 e 15 => 1/02/13;
• Chapters 4, 5, 6 => 1/04/13;
• Chapters 11, 12, 25 e 27 => 1/07/13;
• Chapters 8, 17, 19, 22, 23 e 24 => 1/10/13.

11. SISCOSERV
•HOW?
Filing to be done by the taxpayer or
legal representative with a POA.
It requires a Digital Certificate to
enable online submission:
https://www.siscoserv.mdic.gov.br

12. SCHEDULE
Filing date Description of Service
August2012 Construction Services;
Mail service, including pick up,; remittance or delivery of
documents ( except letters ) or small objects; express
Maintenance, Repair and installation services ( except
construction ).

13. SCHEDULE
Filing Date Type of Service
October, 2012 Lodging and Hospitality
Services;
Accounting and Legal services;
Other professional services;
Printing and publishing services;
Personal Services
December, 2012 Custom brokerage and Logistics services;
Real Estate services;
Corporate support services
February, 2013 Financial services, securitization of receivables, and related
services,
Information Technology Services;

14. SISCOSERV
Filing Date Type of Service
April, 2013 Transportation services ( passengers, cargo, support)
July, 2013 Operational leasing, intellectual property, franchising, and
exploitation of any form of rights;
R & D services;
Cultural and recreational services;
Assignment of intellectual property
October, 2013 Gas, water, power generation and supply services;
Telecommunication services;
Mining, agricultural and utilities-related support services;
Educational services;
Healthcare and social services;
Waste water and solid residues treatment, environmental services.

15. SISCOSERV
PENALTIES
AMOUNT DESCRIPTION
Late penalty R$ 500,00 by filing – deemed profit method
R$ 1.500,00 by filing – actual profit method
Non-compliance to a
Revenue Service
Notice
R$ 1.000,00 – deemed profit/ actual profit
R$ 300,00 – national small company “Simples”
0,2% over the
previous month
revenue
Missing or inaccurate information – minimum rate: R$ 100,00

16. IMPORTANT
• Responsible for providing information
SISCOSERV will be carried out by G.Jacintho’s Tax
group, but source information comes from the
client and from our Accounting department as
well.
• Client: services agreements, and all related
transactions records;
• Accounting: foreign exchange contracts, services
agreements, and other transactions together
with corresponding;
• Tax: Invoice or equivalent document.

17. IMPORTANT
Teamwork  Customer  Tax Accounting
The first filing date is January 28, 2013. Therefore, it is needed an assessment on the
existence of services rendered or hired according to the Normative instruction
( NI)Chapters 1,7,20;
Actions to be taken by :
• Tax
Checking whether there is any invoice (or equivalent ) classified by the NI, chapters
1, 7, and 20.
• Accounting
Checking whether there are FX contracts, Service agreements or other registered
transactions, as per NI chapters 1,7 , and 20;
• Client
Checking Service agreements and other transactions as well as the corresponding
supporting documents.

18. SISCOSERV
Brazilian Federal Revenue Services Guidelines
– Portuguese version:
http://www.receita.fazenda.gov.br/publico/ManuaisSiscoserv/
3aEdicaoManualAquisicao_Portaria2328_2012.pdf
www.gjacintho.com.br - +55(11) 3124-2555 - May 23, 2012- cm