The expectation was that the Withholding Income Tax Declaration (DIRF) would be abolished as of 2024, to be replaced by eSocial and EFD-Reinf. However, the Federal Revenue Service decided to postpone this change, making the submission of DIRF mandatory until February 28, 2025.

This decision caught many companies off guard, especially those that were already preparing for the transition. But after all, why was DIRF kept, and what should your company do to adapt to this change?

Why was DIRF not abolished in 2024?

The postponement is mainly due to technical difficulties in the complete implementation of eSocial and EFD-Reinf. According to experts, many companies faced problems in correctly submitting information, which could generate errors in the withholding of Individual Income Tax (IRPF) and in the proof of income.

The Federal Revenue Service chose to keep DIRF for another year to avoid failures and inconsistencies during the transition. However, the change remains scheduled for 2026, when the data from the calendar year 2025 will be declared exclusively by eSocial and EFD-Reinf.

What changes for companies in 2025?

Even with the temporary maintenance of DIRF, companies must prepare for the definitive migration to the new systems in 2026. Here’s what is essential to do in 2025 to avoid future problems:

• Submit DIRF normally until February 28, 2025 – Submission remains mandatory and must be done through the Declaration Generator Program (PGD) of the Federal Revenue Service.

• Update accounting management systems – The software used for fiscal management must be adapted for the future migration to eSocial and EFD-Reinf.

• Train the accounting team – Training and updates are essential to ensure that professionals understand the new declaration model.

• Organize tax documents – Income statements, withholding receipts, and other documents must be kept organized to avoid inconsistencies in the submission of the declaration.

Future of DIRF: what to expect for 2026?

The abolition of DIRF is confirmed for 2026, consolidating all fiscal information into eSocial and EFD-Reinf. This change promises to reduce bureaucracy and eliminate duplicated obligations, making fiscal processes more efficient.

However, this transition requires companies to adopt a strategic plan, adjusting their systems and training their teams to ensure tax compliance.

If your company still has questions about how to prepare for this change, having a specialized accounting consultancy can be a differentiator to avoid mistakes and ensure full compliance with the new requirements.

Conclusion

The maintenance of DIRF in 2025 gives companies more time to adapt to the new fiscal reality, but it should not be seen as a postponement to take action. The transition to eSocial and EFD-Reinf is inevitable and requires preparation from now on.

At Beorange, we help your company stay compliant with tax obligations, ensuring that all changes are implemented without complications.

Need support to organize your accounting and prepare your business for the future? Contact us and find out how we can help!