ECD — Digital Accounting Bookkeeping
ECD (Escrituração Contábil Digital — Digital Accounting Bookkeeping) is the annual obligation that digitizes the General Journal, General Ledger and trial balances — replacing physical accounting books. Integrated into the SPED system (the public digital bookkeeping system), it is the basis for ECF (the tax computation return) and serves as documentary evidence in audits.
Composition of the ECD
- General Journal (mandatory): all accounting entries for the year, in chronological order.
- General Ledger (mandatory): activity by accounting account, with balances.
- Monthly trial balances: statements for interim periods.
- Financial statements: Balance Sheet, Income Statement, Statement of Changes in Equity, Cash Flow Statement and Statement of Value Added (where applicable).
- Opening and closing terms: formalization of the fiscal year.
The file is digitally signed by the legal representative and by the accountant (with an active registration at the Regional Accounting Council — CRC) — its legal authenticity is equivalent to traditional physical bookkeeping.
Who files the ECD
- All companies taxed under Lucro Real (actual-profit regime).
- Companies under Lucro Presumido (deemed-profit regime) that distribute profits above the deemed limit (without ECD, distributions above the deemed amount are subject to withholding).
- Immune and exempt legal entities with relevant revenue or assets.
- Unincorporated joint ventures (SCP — Sociedades em Conta de Participação).
Deadline: the last business day of June of the following year (example: ECD for 2025 → June 30, 2026). Late-filing penalty: 0.025% of revenue per month (capped at 1% of equity).
Frequently asked questions about ECD
Does a Lucro Presumido company have to file the ECD?
It is not mandatory if the company distributes only the deemed profit to its owners. But if it distributes ACCOUNTING PROFIT greater than the deemed amount (without income tax withholding), it must keep an ECD to substantiate it — otherwise, the amount distributed above the deemed profit is taxed as income. This is why the ECD is strategic for Lucro Presumido companies whose actual profit is higher.
What happens if the ECD is filed after the deadline?
A penalty of 0.025% of revenue per month of delay (minimum BRL 500), capped at 1% of equity. In addition, the absence of an ECD can invalidate the deductibility of expenses in an audit (the tax authorities may disallow costs not supported by accounting records). For this reason, meeting the deadline is decisive.
Does the ECD have to be digitally signed?
Yes. It requires a digital signature using an e-CNPJ A1 or A3 certificate of the company’s legal representative and of the accountant (with an active CRC registration). Without both signatures, the file is rejected by the SPED validation program (PVA-SPED). Importantly, an external accountant must maintain a valid ICP-Brasil certificate.
Can the ECD be amended after filing?
Yes, within the statutory period and in specific circumstances. A voluntary amendment (before any audit) is accepted with a reduced penalty. Once an audit has begun, amendment is limited and may attract closer scrutiny from the tax authorities. Particular care must be taken with consistency between ECD, ECF and SPED — discrepancies among the three are the leading cause of tax assessments.