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If you work remotely, you may soon feel the effects of this decision by the Federal Revenue Service; understand the implications.
A recent change made by the Federal Revenue Service brings major transformations for professionals who perform their duties in a home office format.
Currently, it is normal for companies to reimburse employees for certain expenses, such as electricity and internet. However, according to the new guideline, these payments may no longer form part of the calculation base for social security contributions and Personal Income Tax (IRPF).
In short, the amounts received by employees to cover these costs will not be subject to taxation. However, the Federal Revenue Service's lack of clarity on this matter is causing uncertainty.
The Federal Revenue Service has not clarified how the new measure will be implemented
According to Professor Marcos Francisco Rodrigues Sousa, from the MBA in Controllership and Auditing at Puc-Campinas, one of the issues is the Federal Revenue Service's lack of transparency regarding the receipts accepted for deducting expenses.
This gap raises a concern that could lead to extra costs for companies. For example, the audit may not recognize the expenses as deductible when calculating taxable income for Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL).
This uncertainty requires companies to exercise additional rigor in their accounting. If they choose to pay based on average expenses instead of reimbursing actual expenses, companies may face taxation.
This occurs because the tax deduction may be rejected. In light of this, companies should seek specialized advice. This will enable them to establish clear, well-documented practices for recording and substantiating expenses related to working from home.
What should companies do in light of this?
As a result, employees will be affected, as the obligation to account for working from home will shift to them. This could lead to the end of informal agreements in which a fixed amount was established for reimbursement.
Companies need to find the best way to comply with the necessary documentary evidence requirements, just as they already do with other types of reimbursable expenses. However, this process is expected to become stricter and more bureaucratic.
