This chapter contains the following topics:
Section 9.2, "(Optional) Setting Up National Codes for Service Types"
Section 9.4, "(Optional) Associating Fiscal Codes with Cities and Service Types"
Section 9.5, "Setting Up Supplier Address Book Records for ISS Tax Withholding"
Section 9.7, "Setting Up Retention Rates and Effective Dates for Services by City"
ISS (Imposto sobre Serviços) is a withholding tax that is applied to your suppliers. You calculate ISS withholding for services that you obtain. The withholding amount varies depending on the service type and city.
You must set up codes for the city, service type, and other factors that the system uses when you enter purchase orders.
To set up your system for ISS withholding:
Set up your suppliers for which ISS withholding applies.
You use Brazil-specific address book forms to set up your supplier records. When no purchase order is associated with a voucher, the system uses the values in the supplier's address book record to determine whether to apply ISS withholding, and the city and service codes to use.
Set up fiscal city codes, if they do not exist in your system.
The fiscal city code is used in many programs for Brazil. If you have not previously set up the codes in the Supplemental Data Base program (P00092) and the Fiscal City Codes (76B/FC) UDC table, you must set them up to use the new ISS functionality.
Set up national service codes.
A national service code exists for each service type. The setup of national codes is optional. If you set up the codes, the system saves them to the Withholding by City and Service Detail table (F76B415) for future use.
Set up service type codes for cities.
The service code used by cities might differ from the national code. You select from the values that you set up when you enter Brazil-specific information for purchase orders.
Set up payee information by city code.
You specify the payee and payment terms for the withholding amounts that you send to the cities.
Associate fiscal city codes to the national codes.
You associate service type codes for cities to the national service codes. Setting up national codes is an optional task.
Set up effective dates and retention percentages by a city/national code combination.
The system uses the values that you specify when you calculate ISS withholding.
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Note: You use the Review A/P Tax Code program (P76B0401) to set up information for tax types other than ISS. |
This section provides an overview of national codes and lists the forms used to set up national codes.
You use the Service National Codes program (P76B407) to set up the national codes that you use for ISS withholding. After you set up the national codes, you can associate them with service codes for cities. You obtain the national codes from the Brazilian government. The system stores the values that you enter in the National Code table (F76B407). Setting up national codes is an optional task; it does not affect the ISS calculations.
When you run the Tax Calculation ISS, INSS, FUNRURAL program (R76B4310) to calculate ISS taxes, the system saves the national code to the Withholding by City and Service Detail table (F76B415).
| Form Name | Form ID | Navigation | Usage |
|---|---|---|---|
| Work with National Codes | W76B407A | ISS Withholding Setup (G76B41A), Service National Codes
Select Serv National Codes from the Form menu on the Service Type Codes form in the Service Type Code program. |
Review and select existing records for national codes. |
| Service National Code | W76B407B | Click Add on the Work with National Codes form. | Enter codes and descriptions. |
This section provides an overview of service types for ISS withholding and lists the forms used to set up service types.
You use the Service Type Code program (P76B408) to set up service codes. Service codes are codes that you devise to describe a type of service such as accounting or consulting. You associate a service type code to your suppliers who provide services to you. The system uses the association between the supplier and the service type code when you enter purchase orders for services and when you calculate ISS withholding for vouchers for services. Optionally, you can use the Service Type Code program to associate the service type codes to national codes.
The system saves the service type codes and the associations to the national codes in the Service Type Code table (F76B408).
| Form Name | Form ID | Navigation | Usage |
|---|---|---|---|
| Work with Service Type Codes | W76B408A | ISS Withholding Setup (G76B41A), Service Type Code
Select Service Type Codes from the Form menu on the Work with Taxes Setup by City and Service form of the Taxes Setup by City & Service program (P76B409). |
Review and select existing records. |
| Service Type Codes | W76B408B | Click Add on the Work with Service Type Codes form. | Enter a service type code and description and associate the service type code to a national service code.
Access the Service National Codes program from the Form menu to add national service codes from which you can select. |
This section provides an overview of service fiscal codes and discusses how to set up service fiscal codes.
You use the Service Fiscal Code program (P76B405) to associate service codes with a city code and with a service type that you set up in the Service Type Code program (P76B408). You can associate a service code used for purchase transactions and a service code used for sales transactions to a city/service type combination. The system saves the values that you set up to the Service Fiscal Code table (F76B405).
When you run the Tax Calculation ISS, INSS, FUNRURAL program (R76B4310) to calculate ISS taxes, the system saves the values for the purchase fiscal code to the Withholding by City and Service Detail table (F76B415). The value for the purchase fiscal code is also saved to the Purchase Order ISS Tax Information table (F76B705) when you enter information for purchase orders. If you do not associate fiscal codes with cities and service types, the system leaves the fields for the purchase fiscal code blank in the F76B415 and F76B705 tables.
The values for the purchase fiscal code and sales fiscal code are supplied by the government. These values are not used in ISS calculations and reports provided by the JD Edwards EnterpriseOne software. You set up the values for future use.
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Note: If the value in the Single Svc Fiscal Code field in the Taxes Setup by City Code program (P76B406) is 1 (yes), then the values for the purchase fiscal code and sales fiscal code must be the same. |
| Form Name | Form ID | Navigation | Usage |
|---|---|---|---|
| Work with Service Fiscal Codes | W76B405A | ISS Withholding Setup (G76B41A), Service Fiscal Code
Select Serv. Fiscal Code from the Form menu on the Work with Taxes Setup by City and Service form of the Taxes Setup by City & Service program (P76B409). |
Review and select existing records. |
| Service Fiscal Codes | W76B405C | Click Add on the Work with Service Fiscal Codes form. | Specify the purchase fiscal code and sales fiscal code for a city and service code combination. |
Access the Service Fiscal Codes form.
Enter a value from the Fiscal City Code (76B/FC) UDC table to specify the city for which you set up the fiscal codes.
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Note: The system enables you to enter the value *ALL in this field. When you enter *ALL, you set up a record that applies to all cities for which you have not set up a specific record. You do not set up *ALL in the 76B/FC UDC table. |
Specify a value from the Service Type Code table (F76B408) for which you set up the fiscal codes.
Enter the fiscal code for the city and service type code combination for the ISS taxes that you withhold from supplier payments.
Enter the fiscal code for the city and service type code combination for the ISS taxes that you have withheld from payments that your customers send to you.
This section provides an overview of the setup for supplier address book records, lists prerequisites and discusses how to:
Add ISS tax withholding information to address book records.
Specify exemptions for ISS withholding.
ISS is a withholding tax that is applied to individuals from whom you purchase services. You must set up your suppliers' address book records before you can process ISS withholding. When you set up the supplier address book records, you specify whether the supplier is subject to ISS withholding and the type of service that the supplier provides.
You use the standard software program to enter basic address book information, then use the Address Book Additional Information - Brazil program (P01012BR) to enter Brazil-specific information. You must complete the information on the ISS Tax Information tab for suppliers who are subject to ISS withholding. The system saves the values that you enter for ISS withholding to the Address Book Additional Information table (F76B101).
Some suppliers might be exempt from paying ISS contributions for specific services in specific cities. You can set up an exempt percentage for a specified city/service combination in the Services ISS Exempt program (P76B106). You access this program from the Address Book Additional Information - Brazil form. The system saves the exemption information to the Services ISS Exempt table (F76B106) and uses the information when you calculate ISS for vouchers for the supplier. The system applies the exemption to each voucher line that has the same city/service combination.
Before you begin the tasks in this section, verify that:
Corresponding versions of the Address Book Revisions program (P01012) and the Address Book Additional Information - Brazil program exist in your system.
The service type codes are set up in the Service Type Code program (P76B408).
| Form Name | Form ID | Navigation | Usage |
|---|---|---|---|
| Work With Addresses | W01012B | Address Book - Brazil (G76B01), Address Book Revisions | Review a list of address book records. |
| Address Book Revision | W01012A | Click Add on the Work With Addresses form, or select a record and click Select. | Add or revise an address book record. |
| Address Book Additional Information - Brazil | W01012BRA | Select Regional Info from the Form menu on the Address Book Revision form. | Add tax information specific to Brazil for address book records. |
| Work with ISS Exempt Percentages | W76B106A | Select Services ISS Exempt from the Form menu on the Address Book Additional Information - Brazil form.
ISS Withholding Setup (G76B41A), Service ISS Exempt. Click Add on the Work with Services ISS Exempt form. |
Specify the exempt percentage for each city and service combination. |
Access the Address Book Additional Information - Brazil form.
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Note: This section lists only the fields that you complete for ISS withholding. |
Enter a value from the Service Type Code table (F76B408) to specify the type of service provided by the supplier. The system uses this value as a default value for the service type code when you process ISS withholding for vouchers that are not associated with a purchase order and when you enter a purchase order.
Select to specify that the supplier is subject to ISS withholding.
Access the Work with ISS Exempt Percentages form.
Enter a value from the Service Type Code table (F76B408) to specify the type of service that is fully or partially exempt from ISS withholding.
Enter a value that exists in the Fiscal City Code (76B/FC) UDC table to specify the city for which ISS withholding is exempt.
Enter the percentage of the amount of the voucher line that is exempt from ISS withholding. The system applies this percentage to each voucher line that has the service type code and city code specified on this form.
This section provides an overview of payee information for city codes and discusses how to set up payee information for a city code.
ISS is a tax that is applied based on the city in which a service occurred. When you pay a supplier for provided services, you must withhold the ISS tax amount and pay it to the city. You use the Taxes Setup by City Code program (P76B406) to set up the payee information and associate the payee information to the city code. You also specify whether the service code for purchase transactions (purchase fiscal code) and sales transactions (sales fiscal code) are the same.
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Note: If you enter 1 in the Single Svc Fiscal Code field, the values that you set up for the purchase and sales fiscal codes in the Service Fiscal Code program (P76B405) must be the same. |
The system saves the information that you enter to the Taxes Setup by City Code table (F76B406) and uses the information to validate the payment terms and payee when you run the Tax Calculation ISS, INSS, FUNRURAL program to calculate ISS withholding.
| Form Name | Form ID | Navigation | Usage |
|---|---|---|---|
| Work with Taxes Setup by City Code | W76B406A | ISS Withholding Setup (G76B41A), Taxes Setup by City Code
Select Setup by City Code from the Form menu on the Work with Taxes Setup by City and Service form of the Taxes Setup by City & Service program (P76B409). |
Review and select existing records. |
| Taxes Setup by City Code | W76B406B | Click Add on the Work with Taxes Setup by City Code form. | Enter payee information for a specified city code, and specify whether the purchase and sales fiscal codes are the same. |
Access the Taxes Setup by City Code form.
Enter a value from the Fiscal City Code (76B/FC) UDC table to specify the city code to associate to the payee information that you enter.
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Note: The system enables you to enter the value *ALL in this field. When you enter *ALL, you set up a record that applies to all cities for which you have not set up a specific record. You do not set up *ALL in the 76B/FC UDC table. |
Enter the address book number of the city to which you pay the tax.
Enter the payment term for the tax. You set up payment terms in the Payment Terms program (P0014).
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Note: Do not enter a payment term for split payments. |
Enter 1 to specify that the sales fiscal code and purchase fiscal code are the same value. If you enter 1, the values for the sales fiscal code and purchase fiscal code in the Service Fiscal Code program must be the same.
This section provides an overview of the setup for tax rates and effective dates for services by city and discusses how to set up tax rates and effective dates for services by city.
Because you retain a portion of a supplier's payment to send to the city's fiscal authority, you must set up the rates at which you retain the withholding tax. After you set up the city codes and service codes, you use the Taxes Setup by City & Service program (P76B409) to set up the retention rates and effective dates for a city and service combination. The system validates that the dates for a city/service combination do not overlap with another record for which the combination exists. The system saves the data that you enter to the Taxes Setup by City and Service table (F76B409).
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Note: The system saves a value of R (retention) to the F76B409 table to indicate the type of tax calculation for the record that you set up. |
The system uses the retention rates that you set up when you run the Tax Calculation ISS, INSS, FUNRURAL program (R76B4310) to calculate ISS taxes.
| Form Name | Form ID | Navigation | Usage |
|---|---|---|---|
| Work with Taxes Setup by City and Service | W76B409A | ISS Withholding Setup (G76B41A), Taxes Setup by City & Service | Review and select existing records. You can also delete records. |
| Taxes Setup by City and Service | W76B409B | Click Add on the Work with Taxes Setup by City and Service form. | Specify the retention rate, effective date, and GL offset account for a city and service combination. |
Access the Taxes Setup by City and Service form.
Specify the service type code for which you set up the retention rate and effective dates. You set up service type codes in the Service Type Code program (P76B408).
Enter a value from the Fiscal City Code (76B/FC) UDC table to specify the city for which you set up the retention rate and effective date of the service.
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Note: The system enables you to enter the value *ALL in this field. When you enter *ALL, you set up a record that applies to all cities for which you have not set up a specific record. You do not set up *ALL in the 76B/FC UDC table. |
Specify the beginning of the range of dates for which the retention rate is effective.
Specify the end of the range of dates for which the retention rate is effective. Leave this field blank to set up a rate that does not expire.
Enter the retention rate for the city/service combination.
Enter the G/L offset account to which the system writes the retained amount.