This chapter provides an overview of processing Brazilian withholding taxes and discusses how to:
Update the General Ledger with PIS/PASEP and COFINS tax credits.
Work with service taxes paid externally.
Calculate ISS, INSS, and FUNRURAL taxes.
Calculate IR, PIS/PASEP, COFINS, and CSLL taxes.
Print the INSS withholding certificate.
Maintain ISS and INSS tax records.
Generate a summary report for CSLL, COFINS, and PIS/PASEP contributions.
Generate the text file for taxes.
Print withholding tax reports.
Businesses in Brazil must calculate withholding taxes for the service notas fiscais that they receive. These taxes are calculated on an aggregate basis for corporate entities and on a retention basis for individuals. When calculated on an aggregate basis, the tax is added to the basis of the total amount on the nota fiscal or voucher. The tax is remitted to the government, not to the supplier. When calculated on a retention basis, the tax is an amount that is withheld from the nota fiscal or voucher. In this situation, a portion of the amount that is due to the supplier (the tax) is remitted to the government instead of to the supplier. You must calculate withholding taxes before you process vouchers, and then you must post the vouchers after you calculate the taxes.
After the system calculates the taxes, you can generate reports and magnetic media to meet legal requirements. You generate a weekly collection report and an annual report that informs the federal Department of Revenue of the individuals and legal entities for which you calculated taxes.
The system calculates these withholding taxes:
Tax |
Explanation |
IR (Imposto de Renda) |
A federal income tax that is levied on services that are provided by individuals or legal entities. |
ISS (Imposto sobre Serviços) |
A tax that is defined by the city of origin of the job or service. |
INSS (Instituto Nacional do Seguro Social) |
The national social security tax. Some types of services are subject to INSS tax. The tax amount is added to the value of the provided service. |
FUNRURAL (Fundo de Assistência e Previdência do Trabalhador Rural) |
The income tax for agricultural businesses. It is similar to the IR tax for corporations, but the rate at which the income is taxed is different. |
PIS/PASEP (Programa de Integração Social/Programa de Formação do Patrimônio do Servidor Público) |
A mandatory contribution that is levied as a percentage of monthly billings. The PIS contribution is made to Brazilian social programs by private companies and enterprises. The PASEP contribution is made to Brazilian social programs by public or government entities. |
COFINS (Contribuição para Financiamento da Seguridade Social) |
A mandatory contribution that is levied as a percentage of monthly billings on merchandise and services. |
CSLL (Contribuição Social sobre o Lucro Líquido) |
A tax on net gains. |
The applications that you use to calculate Brazilian withholding taxes read data from these tables:
Accounts Payable Ledger (F0411).
Address Book Brazilian Tag File (F76011).
Nota Fiscal Header - Brazil (F7601B).
Nota Fiscal Detail - Brazil (F7611B).
Item Master Regional Information - Brazil (F76411).
Item Branch Regional Information - Brazil (F76412).
Purchase Order Detail Tag File - Brazil (F76432).
Tax Code (F76B0401).
IR Progressive (F76B0402).
Voucher Additional Information Brazil (F76B0411).
Services Taxes Paid Externally (F76B0403).
Results of the tax calculations are stored in these tables:
Accounts Payable Ledger (F0411).
Account Ledger (F0911).
Voucher Additional Information Brazil (F76B0411).
Voucher Tax Processed (F76B4012).
Tax Accumulates by AN8 (F76B4016).
Tax Accumulates by AN8, Company (F76B4017).
This section provides an overview of the Taxes Netting Process program and discusses how to:
Run the Taxes Netting Process program.
Set data selection for Taxes Netting Process.
Set processing options for Taxes Netting Process (R76B9011).
You run the Taxes Netting Process program to update general ledger accounts with PIS/PASEP and COFINS tax amounts after you process vouchers or update sales, and before you run the Nota Fiscal Conversion program (R76B200A).
You can run the Taxes Netting Process program in either proof or final mode. When you run the program in proof mode, you can review the report that the system produces to determine if any errors exist. The report includes:
Date range for the processed records.
Whether the report is for the proof or final run of the program.
If you set the processing options to print in detail, information about the nota fiscal for each record, including the number, series, document ID, and tax type.
Additionally, the report shows whether each transaction generated a debit or credit journal entry, and the amount of the entry.
Errors that occurred during processing.
The batch number and batch type (if you set the processing option to run the program in final mode and no errors occurred during processing).
After you correct any errors, you can run the report in final mode to create the journal entries and the batch.
Process Flow for Final Mode
When you run the Taxes Netting Process program in final mode, the system uses this logic to write records to the F0911 table for each selected, unprocessed record in the F76B011 table:
Accesses the G/L Class Code Cross Reference UDC (76/GL) to determine the GL class code that is assigned to the branch/plant for PIS/PASEP and COFINS taxes.
If no GL class code cross-reference exists for the branch/plant, the system uses the default GL class code. The system uses the GL class code to determine the automatic accounting instruction (AAI) to use, and uses the AAI to determine the account to credit or debit.
If the value in the Transaction Nature Code field (data item CFOP) in the F7611B table is greater than 500, the system uses AAI 4220 to generate a debit to the posting account and uses AAI 4240 to generate a credit to the posting account.
Transaction Nature codes that are greater than 500 are assigned to sales transactions. The system creates a summarized journal entry record by each tax type, GL date, and GL class code combination.
If the value in the Transaction Nature Code field in the F7611B table is less than 500, the system uses AAI 4385 to generate a debit to the posting account and uses AAI 4390 to generate a credit to the posting account.
Transaction Nature codes that are less than 500 are assigned to procurement transactions. The system creates a summarized journal entry record by each tax type, GL date, and GL class code combination.
Creates a single batch header and generates all records in the single batch header.
The system prints information about the batch on the report.
Marks the records in the F76B011 table for which journal entries are written as processed.
Note. The system writes entries to the F0911 table only when no errors exist for the record in the F76B011 table. If an error exists, the system prints an error message on the report instead of writing entries to table F0911.
Reconciling the General Ledger for PIS/PASEP and COFINS Taxes
After you update the general ledger by running the Taxes Netting Process program, you can manually reconcile your accounts to determine whether you must send funds to the government for the amounts that you collected for PIS/PASEP and COFINS taxes, or whether you have a credit amount that you can apply to the amounts that are due the following month.
For example, if you paid more in PIS/PASEP and COFINS taxes through your procurement transactions than the amount of PIS/PASEP and COFINS taxes that you collected through your sales transactions, you have a credit amount that you can apply towards PIS/PASEP taxes for the following month.
For example, if the PIS/COFINS on purchases is 1000 BRL and the PIS/COFINS on sales is 800 BRL, the credit for following month is 200 BRL.
If you collected more through your sales transactions than you paid through your procurement transactions, you must remit to the government the difference between the amounts collected and paid, minus any credit from the previous month.
For example, if the PIS/COFINS on sales is 1300 BRL, the PIS/COFINS on purchases is 800 BRL, and the credit from the previous month is 200 BRL, the 300 BRL is due to the government.
The system does not store information about the total amounts paid on procurement transactions and the total amounts that were collected through sales transactions. It also does not store information about credits from previous months. You must manually reconcile your accounts to determine the difference between the amounts paid and collected each month. If you must generate a payment to the government for PIS/COFINS taxes, you must manually process the payment.
When you run the Generate ICMS Magnetic Files - Sintegra program (R76B201), you create a flat file that contains tax information. The system creates record type 54 records in the flat file for PIS and COFINS taxes that lists the amounts of PIS/COFINS taxes from the notas fiscais that were processed.
Select Sale Order Processing – Brazil (G76B4211), Taxes Netting Process.
Select Purchase Order Processing – Brazil (G76B4311), Taxes Netting Process.
Along with processing options, you set data selection to specify the records to process. To process all of the unprocessed records, set your data selection so that the Processed Flag - Brazil field is not equal to 1.
Processing options enable you to specify the default processing for programs and reports.
Process
1. Mode |
Specify whether the system generates the report in proof or final mode. When you generate the report in final mode and the batch has no errors, the system creates entries in the F0911 table and updates the F76B011 table to indicate that the tax record was processed. Values are: Blank: Process records in proof mode. 1: Process records in final mode. |
2. G/L Summary or Detail |
Specify whether the system writes entries to the F0911 table as a summary of the records processed or in detail. Values are: Blank: Write entries in detail. 1: Write entries in summary. |
3. G/L Date |
Specify whether the system writes records to the F0911 table by GL Date or by the current date. Values are: Blank: Current date 1: GL Date |
4. Date - From |
Specify the starting date for the date range for which the system processes records. You must specify a date. |
5. Date - To |
Specify the ending date for the date range for which the system processes records. You must specify a date. |
6. Document Type |
Specify the document type that the system assigns to the records that it writes to the F0911 table. The document type that you specify must exist in the Document Type - All Types UDC table (00/DT). If you leave this processing option blank, the system assigns a document type of JE. |
7. Domestic Ledger Type |
Specify the ledger type that the system assigns to the records that it writes to the F0911 table. The ledger type that you specify must exist in the Ledger Types UDC table (09/LT). If you leave this processing option blank, the system assigns a ledger type of AA. |
8. Print Detail or Errors Only |
Leave this processing option blank to print all records on the report. Enter 1 to print only the records for which an error exists. |
Versions
1. Journal Entry Version |
Specify a version for the Journal Entry MBF Processing Options program (P0900049). If you leave this processing option blank, the system uses version ZJDE0001. Important! It is recommended that you use the default version of ZJDE0001 or a copy of it. Using a different version might compromise your data integrity. |
This section provides an overview of working with service taxes paid externally and discusses how to:
Enter externally paid INSS tax amounts for a supplier.
Run the INSS Withholding at Other Companies report.
Set processing options for INSS Withholding at Other Companies (R76B04009).
A supplier who provides a service to you during a month might also provide services to other companies during that month. The other companies might have withheld INSS taxes for the supplier. Occasionally, a supplier might make an INSS contribution for a month through a bank or government agency. You must consider the amounts that other companies withheld and the amounts that a supplier might have contributed for INSS when you calculate the amount of INSS tax that you withhold for the supplier.
You use the Service Taxes Paid Externally program (P76B0403) to enter the information that your supplier gives to you about the INSS tax amounts that others hold for the supplier. You must enter the information about the INSS tax amounts that are held by others before you calculate the INSS taxes which you must withhold for the supplier, and before you calculate IR taxes for the supplier.
You need only enter the amounts that are held by others when your supplier is an individual or cooperative, and when the supplier was paid for services to another company in the same month in which you pay the supplier for services or the supplier made an INSS contribution in the same month in which you pay the supplier.
Printing the INSS Withholding at Other Companies Report
You can generate the INSS Withholding at Other Companies report (R76B04009) to obtain a listing of the information that your suppliers give to you about the INSS tax amounts that other companies have withheld for them. The system prints the report by supplier and provides totals for each supplier. You use Data Selection to specify the records to include in the report.
Form Name |
FormID |
Navigation |
Usage |
Enter Service Tax Amounts Paid Externally |
W76B0403A |
A/P Tax Processing - Brazil (G76B0414), Service Taxes Paid Externally Click Add on the Work With Service Taxes Paid Externally form. |
Enter externally paid INSS tax amounts for a supplier. |
Access the Enter Service Tax Amounts Paid Externally form.
INSS Registration Number |
Enter the supplier's Registration Number for INSS. |
Document Number for External Service Tax |
Enter the document number that identifies a specific service tax that is stored externally for a supplier. |
Service Tax Withholding Location |
Specify where the service tax is stored. Values are: 00: External Company 01: Bank |
Service Tax Amount Basis |
Enter the amount that another company paid to the supplier. The INSS service tax that other company withheld is based on this amount. |
Service Tax Amount |
Enter the INSS tax that another company withheld for the supplier. |
Service Tax External Company |
Enter the identifier for a company or bank that is holding INSS taxes for a supplier. You can enter the company or bank name, or any other identifying name or number. |
CNPJ/CPF Tax ID |
Enter the tax ID of the company or bank that is holding the INSS taxes for the supplier. |
Select A/P Tax Processing - Brazil (G76B0414), INSS/IN89 INSS Withholding at Other Comp.
Processing options enable you to specify the default processing for programs and reports.
Other Company Transactions
Month |
Enter a two-digit value for the month for which the system processes records. For example, enter 05 for May. You must complete this processing option. |
Year |
Specify the fiscal year for the month that you specify in the Month processing option. You must complete this processing option. |
This section provides overviews of the Tax Calculation ISS, INSS, FUNRURAL program, aggregation and retention for INSS taxes, and calculations for each tax; and discusses how to:
Run the Tax Calculation ISS, INSS, FUNRURAL program.
Set processing options for Tax Calculation ISS, INSS, FUNRURAL (R76B4310).
Use the Tax Calculation ISS, INSS, FUNRURAL (R76B4310) program to calculate ISS, INSS and FUNRURAL taxes. You run the Tax Calculation ISS, INSS, FUNRURAL program before you pay vouchers.
The Tax Calculation ISS, INSS, FUNRURAL program orders all vouchers in a date range by GL date and calculates the withholdings of each voucher. When you run the Tax Calculation ISS, INSS, FUNRURAL program, the system generates two lines in the F0411 table for each voucher processed. A positive line is created that is paid to the fiscal authority. A negative line is created that is paid with the voucher. The system requires that the negative lines are included on the first payment to the supplier.
The system generates records in the Voucher Additional Information Brazil (F76B0411) table when you calculate the taxes. During the calculation process, the system writes a record to the Voucher Tax Processed (F76B4012) table as it writes each withholding amount. The F76B4012 table includes information about ISS, INSS, and FUNRURAL taxes, including whether the taxes were already calculated for the voucher. If the process generates INSS tax for a supplier who is an individual, the system writes a record to the Tax Accumulates by AN8 (F76B4016) table for INSS taxes to maintain the monthly accumulated amount. The F76B4016 table accumulates the INSS taxes calculated so that the system can compare the amounts to the INSS monthly maximum for suppliers who are individuals. The system uses the amount in the F76B4016 to determine if the maximum tax withholding has occurred.
The Tax Calculation ISS, INSS, FUNRURAL program recalculates ISS and FUNRURAL taxes that were previously calculated when you process unposted vouchers.
The system selects vouchers that are not paid, whether they are posted or not posted. The system disregards all withholding lines and voided vouchers lines.
Use data selection to select vouchers to process when you calculate ISS and FUNRURAL. The system automatically processes records for all companies for which BR exists as the country code in the address book record. Because INSS updates accumulated amounts, the process does not use the data selection when you calculate this tax. Consider creating two versions: one to calculate ISS and FUNRURAL and the other to calculate INSS. Indicate the month and year of the unpaid vouchers to process by specifying the month and year in the processing options.
Important! When the system creates records in the F0911 table during the tax calculation process, it populates the Name - Remark Explanation field (data item EXR) with key identifying information. If you change the value in the Name - Remark Explanation field, you will compromise the integrity of the data and the system might produce inaccurate calculations.
The system calculates both aggregation and retention for INSS taxes for suppliers who are individuals or cooperatives. Before the system can correctly calculate aggregation and retention percentages for INSS taxes, you must:
Use the Review A/P Tax Code program (P76B0401) to create tax codes for the INSS tax rates for aggregation and for retention.
For example, you might set up code INSA for a tax rate for INSS aggregation and INSR for a tax rate for INSS retention. Your business needs might require you to set up several codes for aggregation and for retention.
Set up purchase use codes in the Purchase Use UDC table (76/PU) to define the aggregation and retention combinations that the system uses when calculating INSS taxes.
The system uses the values that you enter in the Description 02 field of the Purchase Use UDC table to determine the tax to apply to the supplier.
Assign to suppliers of services the tax codes that specify the percentage of taxes aggregated or withheld.
You assign tax codes in the Address Book Revisions program (P01012), and the system stores the values in the Address Book Brazilian Tag File (F76011) table. The fields that you must complete with the tax codes are on the Tax Information tab of the Address Book Additional Information - Brazil form. If both aggregation and retention apply, you must assign a code for each to the supplier. The system uses the tax codes that you enter in the Address Book Revisions program only if you do not specify a code in the Purchase Use processing option in the Tax Calculation ISS, INSS, FUNRURAL program.
Use the Brazilian P. O. Additional Information program (P4310BR) to assign a purchase use code to services on purchase orders.
The system writes the purchase use code to the Purchase Order Detail Tag File - Brazil table (F76432) table. If the supplier for a service is subject to INSS aggregation and retention, assign a purchase use code that includes a value in the Description 02 field of the purchase use code. The system uses the purchase use code that you enter here only if you do not specify a code in the Purchase Use processing option in the Tax Calculation ISS, INSS, FUNRURAL program.
When you run the Tax Calculation ISS, INSS, FUNRURAL program, the system uses this hierarchy to determine the retention and aggregation amounts:
The system uses the value in the Purchase Use processing option if a value exists in the processing option.
The system then accesses the tax rate in the Tax Code (F76B0401) table and calculates the amount of the aggregation or retention. If the code in the processing option specifies a purchase use code that has tax codes that have both aggregation and retention rates assigned, then the Tax Calculation ISS, INSS, FUNRURAL program accesses the Address Book Brazilian Tag File (F76B0401) table twice to obtain both rates. If you complete this processing option with a valid purchase use code, the system ignores the value that exists in the Retention/Aggregation field (data item BRRTA) in the F76B0401 table.
If you do not complete the Purchase Use processing option, the system uses the purchase use code from the F76432 table.
If no value for a purchase use code exists in the F76432 table, the system displays an error message describing the error in the setup.
Note. The system ignores the value in the INSS Y/N field (data item BRKINS) in the Item Master Regional Information program (P4101BR) and Item Branch Regional Information program (P76412B) when you run the Calculation ISS, INSS, FUNRURAL program.
Imposto sobre Serviços (ISS) is a tax that is defined by the city of origin of the job or service. The tax rates vary by city and type of service. Each type of service that is taxed by a city has a specific code. Tax rates are determined by the list of services and their codes. Each city can establish different tax rates per type of service.
Some cities require that the ISS tax amount be declared in the service nota fiscal by including the tax in the price, as is done for the ICMS tax. Other cities require that the tax be added to the price as a separate item, as is done for the IPI tax. Jobs or services that are subject to the ISS tax are exempt from ICMS and IPI taxes.
If a transaction is subject to ISS tax, the system:
Calculates the amount of the withholding, based on information in the F7601B table, the processing options, or the F76B011 table.
The ISS tax is calculated for the entire voucher and the tax amount is paid when the first line of the voucher is paid.
If there is no information in the F76B011 table about ISS tax, the system verifies the existence of a tax code in the Address Book Brazilian Tag File (F76011) table and applies the rate associated with the code.
Note. In the rare situation in which the calculated tax exceeds the amount of the first pay item, the amount for the first item becomes a negative amount. You must manually adjust the pay item according to your procedures.
Instituto Nacional do Seguro Social (INSS) is the national social security tax. Some types of services are subject to INSS tax, and the tax amount is added to the value of the provided service.
If a transaction is subject to INSS tax for individuals, the system does the following in this order:
For standard vouchers, verifies the existence of a tax code in the F76011 table.
Accesses the purchase order for the nota fiscal.
Uses the Description 02 field in the Purchase Use (76/PU) UDC table to determine the INSS aggregation and INSS retention rates.
You set up INSS aggregation and INSS retention rates in the Tax Code table (F76B0401).
Calculates the aggregation and retention amounts.
Accesses the F76B0403 table to determine the amount of INSS tax, if any, which was withheld for the supplier by other companies.
The system accesses the F76B0403 table to track the monthly maximum tax amount.
Accesses the INSS Maximum Monthly Tax Amount (76B/TX) UDC table to determine the maximum INSS retention amount for the associated tax code in the F76B0401 table.
Compares the sum of the calculated INSS retention amount and the INSS tax that was withheld for the supplier by other companies to the maximum retention amount in UDC 76B/TX, and returns the greater of the calculated tax or the maximum INSS retention amount.
The INSS tax is calculated for the entire voucher and the tax amount is paid when the first line of the voucher is paid.
If a transaction is subject to INSS tax for corporate entities, the system does the following in this order:
For standard vouchers, verifies the existence of a tax code in the F76011 table.
Accesses the purchase order for the nota fiscal.
Calculates the amount of the withholding, based on the reduction percentage.
The INSS tax is calculated for the entire voucher and the tax amount is paid when the first line of the voucher is paid.
Note. In the rare situation in which the calculated tax exceeds the amount of the first pay item, the amount for the first item becomes a negative amount. You must manually adjust the pay item according to your procedures.
Fundo de Assistência e Previdência do Trabalhador Rural (FUNRURAL) is the income tax for agricultural businesses. It is similar to the IR tax for corporations, but the rate at which the income is taxed is different.
If a transaction is subject to FUNRURAL tax, the system does the following, in this order:
Verifies the existence of a tax code in the F76011 table.
Calculates the aggregate amount, based on the percentage of the retention.
The FUNRURAL tax is calculated for the entire voucher and the tax amount is paid when the first line item is paid.
Select A/P Tax Processing - Brazil (G76B0414), Tax Calculation ISS, INSS, FUNRURAL.
Processing options enable you to specify the default processing for programs and reports. For reports, processing options enable you to specify the information that appears on reports.
General
Address Number |
Enter the number of the supplier to be processed. If you leave this processing option blank, the system processes the records of all suppliers. |
GL Date Month |
Enter the month for which the system selects records to process. |
GL Date Year |
Enter the year for which the system selects records to process. |
ISS
Calculate ISS |
Enter 1 to calculate ISS taxes. |
Brazil Tax Information |
Specify the tax code that the system uses to determine the tax rate for the vouchers being processed. The system applies the tax rate that is associated with the tax code in the Tax Code (F76B0401) table. |
Flag for Same City |
Enter 1 to calculate ISS retention when the value in the City field in the address book record for the supplier is the same as the value in the City field in the address book record for the company. If you leave this processing option blank or the values are not the same, the system does not calculate the tax. |
Pay Status Code |
Enter the pay status code that the system assigns to the negative tax line that the system creates in the voucher. The negative tax line is subtracted from the amount paid to the supplier. |
Pay Status Code Tax ISS |
Enter the pay status code that the system assigns to the positive tax line that the system creates in the voucher. The positive tax line is the amount that you send to the tax authority. |
INSS
FUNRURAL
Calculate FUNRURAL |
Enter 1 to calculate FUNRURAL taxes. |
Brazil Tax Information for FUNRURAL |
Specify the tax code that the system uses to determine the tax rate for the vouchers being processed. The system applies the tax rate that is associated with the tax code in the F76B0401 table. |
Pay Status Code |
Enter the pay status code that the system assigns to the negative tax line that the system creates in the voucher. The negative tax line is subtracted from the amount paid to the supplier. |
Pay Status Code FUNRURAL |
Enter the pay status code that the system assigns to the positive tax line that the system creates in the voucher. The positive tax line is the amount that you send to the tax authority. |
The system calculates IR, PIS/PASEP, COFINS, and CSLL contributions automatically when you run the automatic payment process. This section discusses the automatic payment process. You can also enter the contribution amounts when you process manual payments.
This section provides an overview of the tax calculations, lists a prerequisite, and discusses how to set processing options for Brazilian Payment Process - PO (P76B470).
Before you run the Create Payment Control Groups program (R04570), set the processing options in the Brazilian Payment Process - PO program (P76B470). Access the Brazilian Payment Process - PO program from the A/P Tax Processing - Brazil (G76B0414) menu. The system uses the values in these processing options to define the Brazil tax information that the system uses to calculate the withholdings for each voucher of the payment. The Create Payment and the Brazilian Payment Process - PO programs must have matching versions. For example, if you use version ZJDE0010 for the Create Payment Control Groups program to create payments for Brazil, you must set the processing options for the payment process in the ZJDE0010 version of the Brazilian Payment Process - PO program.
Create Payment Control Groups Program (R04570)
The Create Payment Control Groups program (R04570) calculates IR, PIS/PASEP, COFINS, and CSLL taxes. When you run the Create Payments program, the system:
Disregards lines for ISS, INSS and FUNRURAL withholding.
Calculates IR, PIS/PASEP, COFINS, and CSLL withholdings for each voucher line of the payment.
The system searches for accumulated amounts in the Tax Accumulates by AN8, Company (F76B4017) table before performing the tax calculations.
Saves the tax calculation information to the Payment Processing - Detail (F04573) and F04573 Brazilian Temp WH File (F76B473T) tables.
The system creates one line for each type of withholding calculated saves it to the F04573T table.
Updates the A/P Payment Processing - Summary (F04572) table with the payment amount, less the taxes calculated.
For PIS/PASEP, COFINS, and CSLL withholdings, if the accumulated gross amount in a month is less than the minimum amount that is entered in the Minimum Withholding Amount processing option in the Brazilian Payment Process - PO program, the system writes the tax amount and the gross amount for the voucher line in the PIS, COFINS and CSLL Below Min. (F76B411A) table for control purposes.
IR Tax
Imposto de Renda (IR) is a federal income tax that is levied on services that are provided by individuals or legal entities. The system calculates the tax for each line when you run the Create Payment Control Groups program.
Pessoa Física is IR tax levied on individuals. For most services, the taxable income is the value of the service that is provided. Before you calculate this tax, you must:
Enter the number of dependents for the service provider in the IR Progressive (F76B0402) table.
The application uses the number of dependents to find the corresponding amounts and deductions in a scaled table of income brackets.
Run the Tax Calculation ISS, INSS, FUNRURAL program to calculate ISS, INSS, and FUNRURAL taxes.
If a voucher is subject to IR tax, the system performs these actions for individuals in this order:
Checks the Voucher Tax Processed (F76B4012) table to verify that ISS, INSS, and FUNRURAL taxes were calculated.
For payments to suppliers, checks that the negative withholding lines for ISS, INSS, and FUNRURAL are included in the payment.
Checks that the supplier does not have another payment in process because the system uses accumulated amounts that might be affected by another payment.
Verifies the existence of a tax code in the Address Book Brazilian Tag File (F76011) table.
The system uses the INSS maximum amount for the month to determine the applicable amount.
The system saved the INSS maximum amount to the F76B4012 table when the system calculated INSS tax for this voucher.
Reduces the IR tax base by the amount of the INSS tax withheld.
Calculates the withholding amount based on the percentage of the reduction of the basis of calculation, the number of dependents, whether the individual is retired, and the tax rate.
The system calculates IR tax for each line on the voucher and pays the voucher line and the withholding line in the same payment.
Creates a line in the Voucher Additional Information Brazil (F76B0411) table for IR withholding.
Writes two lines to the F0411 table; one that is a positive amount and that is paid to the fiscal authority and one that is a negative amount and that is paid with the voucher.
Updates the Tax Accumulates by AN8, Company (F76B4017) table.
The system accumulates by month, tax ID of the supplier, tax ID of the company, and tax type (IR or INSS) the gross amounts and contributions amounts paid.
Note. INSS tax is accumulated because the IR amount is considered in the INSS calculations.
Pessoa Jurídica is the IR tax that is levied on legal entities. For corporate entities, the tax rate varies, according to the type of service. The taxable income is the value of the provided services.
If a transaction is subject to IR tax, the system performs these actions for corporate entities in this order:
For payments to suppliers, checks that the negative withholding lines for ISS, INSS, and FUNRURAL are included in the payment.
Checks that the supplier does not have another payment in process because the system uses accumulated amounts that might be affected by another payment.
Verifies the existence of a tax code in the F76011 table.
Calculates the withholding amount based on the percentage of the retention.
The IR tax is calculated for each line of the voucher and is paid with the corresponding service.
Creates a line in the F76B0411 table for IR withholding.
Writes two lines to the F0411 table; one that is a positive amount and that is paid to the fiscal authority and one that is a negative amount and that is paid with the voucher.
Updates the Tax Accumulates by AN8, Company (F76B4017) table.
The system accumulates by month, tax ID of the supplier, tax ID of the company, and tax type (IR, INSS) the gross amounts and contributions amounts paid.
PIS/PASEP, COFINS, and CSLL Contributions
The system uses this process flow to determine whether to calculate PIS/PASEP, COFINS, and CSLL contributions:
Process flow to determine whether to calculate PIS/PASEP, COFINS, and CSLL contributions
If withholdings apply to the payment, the system:
Checks the Voucher Tax Processed (F76B4012) table to verify that ISS and INSS taxes were calculated.
For payments to suppliers, checks that the negative withholding lines for ISS, INSS, and FUNRURAL are included in the payment.
Checks that the supplier does not have another payment in process because the system uses accumulated amounts that might be affected by another payment.
Calculates the withholding for each line on the voucher.
Each withholding that the system calculates is generated as a new line of the voucher.
Creates a line in the F76B0411 table for PIS/PASEP, COFINS, and CSLL contributions.
Vouchers subject to PIS/PASEP, COFINS, and CSLL contributions do not generate contributions if the accumulated gross amount in a month is less than the established minimum. In the first payment in which the accumulated gross amount is greater than the minimum, the system creates a line in the F76B0411 table.
Writes two lines to the F0411 table; one that is a positive amount and that is paid to the fiscal authority and one that is a negative amount and that is paid with the voucher.
Updates the F76B4017 table.
The system accumulates by month, tax ID of the supplier, tax ID of the company, and tax type (PIS/PASEP, COFINS and CSLL) the gross amounts and contributions amounts paid.
If the accumulated gross amount in a month is less than the minimum amount in the Minimum Withholding Amount processing option in the Brazilian Payment Process - PO program, or if the first payment that the accumulated gross amount is greater than the minimum, the system writes the tax amount and the gross amount for the voucher line in the PIS, COFINS and CSLL Below Min. (F76B411A) table.
Writing Payments
When you write the payment, the system checks that the month and the year of the write operation is equal to the month and the year of the create payment operation.
Updating Payments
When you update the payment, the system:
Copies all calculated information to the payment tables (F0413 and F0414).
Creates a line in the F76B0411 table for IR, PIS/PASEP, COFINS, and CSLL contributions.
Writes two lines to the F0411 table; one that is a positive amount and that is paid to the fiscal authority and one that is a negative amount and that is paid with the voucher.
Updates the accumulated taxes table (F76B4017).
The system accumulates by month, tax ID of the supplier, tax ID of the company, and tax type (IR, INSS, PIS/PASEP, COFINS and CSLL) the gross amounts and contributions amounts paid.
You must calculate INSS, ISS, and FUNRURAL before calculating IR, PIS/PASEP, COFINS, and CSLL taxes.
Processing options enable you to specify the default processing for programs and reports. For reports, processing options enable you to specify the information that appears on reports.
PIS
Brazil Tax Information |
Specify the tax code that the system uses to determine the tax rate for the vouchers being processed. The system applies the tax rate that is associated with the tax code in the F76B0401 table. If you do not complete this processing option, the system uses this hierarchy to determine the tax to apply:
|
Minimum Amount to Withhold |
Enter the minimum amount on which the system calculates withholding. The system calculates withholding taxes for a supplier only when the total of the vouchers processed for the supplier exceed this amount. |
Pay Status Code - PIS |
Specify a value from the Pay Status Code (00/PS) UDC that indicates the pay status of the pay item created to offset the withholding amount. |
COFINS
Brazil Tax Information |
Specify the tax code that the system uses to determine the tax rate for the vouchers being processed. The system applies the tax rate that is associated with the tax code in the F76B0401 table. If you do not complete this processing option, the system uses this hierarchy to determine the tax to apply:
|
Minimum Amount to Withhold |
Enter the minimum amount on which the system calculates withholding. The system calculates withholding taxes for a supplier only when the total of the vouchers processed for the supplier exceed this amount. |
Pay Status Code - COFINS |
Specify a value from the Pay Status Code (00/PS) UDC that indicates the pay status of the pay item created to offset the withholding amount. |
CSLL
Brazil Tax Information |
Specify the tax code that the system uses to determine the tax rate for the vouchers being processed. The system applies the tax rate that is associated with the tax code in the F76B0401 table. If you do not complete this processing option, the system uses this hierarchy to determine the tax to apply:
|
Minimum Amount to Withhold |
Enter the minimum amount on which the system calculates withholding. The system calculates withholding taxes for a supplier only when the total of the vouchers processed for the supplier exceed this amount. |
Pay Status Code - CSLL |
Specify a value from the Pay Status Code (00/PS) UDC that indicates the pay status of the pay item created to offset the withholding amount. |
IR
Brazil Tax Information |
Specify the tax code that the system uses to determine the tax rate for the vouchers being processed. The system applies the tax rate that is associated with the tax code in the F76B0401 table. |
Payment Terms Code |
Specify the code that identifies the terms of payment. You set up codes in the Payment Terms program (P0014). If you leave this processing option blank, the system identifies the current period that is set up in the fiscal date pattern, and then uses the payment term that is associated with the current period. You set up the association between payment terms and current periods in the Cross Reference - Due Date Tax (76B/VE) UDC table. |
Pay Status Code |
This processing option is not used. Specify a value from the Pay Status Code (00/PS) UDC that indicates the pay status of the pay item the system creates to offset the withholding amount. |
Maximum INSS |
Enter the maximum withholding amount. The system uses this amount to determine whether the payments being processed should have INSS taxes withheld. The system uses the value in this processing option only if the F76B4012 table does not contain this information. |
This section provides an overview of the INSS withholding certificate, lists a prerequisite, and discusses how to print the withholding certificate.
After you process the vouchers for suppliers who performed services for you, you run the INSS/IN89 Generate INSS Withholding Cert program (R76B04008) to print the INSS withholding certificates for the suppliers. The system prints one certificate per voucher. The certificate includes information about the supplier and the transaction for which you paid the supplier:
The supplier's INSS Registration number, CBO code, and CNPJ/CPF number.
The INSS tax amounts that you withheld for the supplier.
The amount on which the withheld amount is based.
The voucher number and date.
The date when you issued the certificate.
Run the Tax Calculation ISS, INSS, FUNRURAL (R76B4310) program to calculate the INSS taxes for the suppliers.
See Calculating INSS, ISS, and FUNRURAL Taxes.
Select A/P Tax Processing - Brazil (G76B0414), INSS/IN89 Generate INSS Withholding Cert.
This section provides an overview of records maintenance for taxes and discusses how to maintain records.
The amounts for ISS, INSS, and FUNRURAL taxes are included on the invoices that your suppliers send to you. If you discover a rounding error in the amounts, you can use the F0411 Taxes Maintenance program (P76B4200) to correct the amounts. You can modify only unposted amounts.
When you change a tax amount, the system updates the F0411 and F76B0411 tables with the new values, and updates the F76B4012 table to show that the tax was changed manually.
Note. Use the Taxes Maintenance program only to correct rounding differences in the tax amounts. Use the Review A/P Tax Code (P76B0401) program to correct setup errors that cause errors in the tax amounts. Use the Nota Fiscal Check & Close program (P76B900) to process other changes to tax amounts.
See Also
Setting Up Withholding Tax Codes
Working with Errors on Notas Fiscais for Brazil
Form Name |
FormID |
Navigation |
Usage |
Voucher Entry |
W76B4200A |
A/P Tax Processing - Brazil (G76B0414), Tax Maintenance |
View and select unposted tax lines for ISS and INSS taxes. |
Voucher Additional Information - Revision |
W76B4200B |
On the Voucher Entry form, select a record and click Select. |
Modify the tax amounts. |
Access the Voucher Additional Information - Revision form.
This section provides an overview of the summary report for CSLL, COFINS, and PIS/PASEP taxes and discusses how to:
Run the report.
Set processing options for Summary IRPJ/CSLL/COFINS/PIS (R76B04010).
After you post vouchers and run the Create Payment Control Groups program, you can generate a report that summarizes the taxes withheld for a supplier. The Summary IRPJ/CSLL/COFINS/PIS report (R76B04010) includes:
Report Section |
Contents |
Header |
Calendar year of the report. |
1. Payment Source (Fonte Pagadora) |
The name and CNPJ number of the company who withheld taxes from the supplier. |
2. Corporation (Supplier of goods and services) (Pessoa Jurídica Fornecedora de Bens ou de Serviços) |
The suppler for whom the taxes are withheld. |
3. Relation of Payments to Withholdings (Relaçäo de Pagamentos e Retenções) |
The details of the transactions, which includes the month of payment, the Receita Code, total amount of all vouchers paid to the supplier per Receita Code, and the amount withheld. |
4. Complementary Information (Informações Complementares) |
An empty space on the report in which comments can be written. |
5. Person Responsible for report data (Résponsável Pelas Informaçóes) |
The printed name of the person responsible for the report, the date, and a signature line. This section appears on every page of the report. |
You use data selection to select the supplier for whom to process records, and use processing options to specify the calendar year, name of person responsible for the report, and the date of the report.
Select A/P Tax Processing (G76B0414), Summary IRPJ/CSLL/COFINS/PIS.
Processing options enable you to specify the default processing for programs and reports.
General
1. Calendar Year |
Specify the four digit calendar year for which the system processes records. |
2. Month of Payment - Beginning |
Specify the first month for which the system processes records. |
3. Month of Payment - Ending |
Specify the last month for which the system processes records. |
Signature
1. Name of Person Responsible |
Specify the name of the person who is responsible for producing the report. The system prints the name that you specify on each page of the report, along with a signature line. |
2. Report Date |
Specify the date of the report. The system prints the date that you specify on each page of the report near the signature line. |
The Text File Generation for Fed. Tax Auth. program (R76B04006) generates a flat file for IR taxes for a 12-month period. The report is organized by the address book numbers of the suppliers and by the Recieta code that is assigned to the suppliers.
This section discusses how to:
Run the Text File Generation for Fed. Tax Auth report.
Set processing options for Text File Generation for Fed. Tax Auth. (R76B04006).
Select A/P Tax Processing - Brazil (G76B0414), Text File Generation for Fed. Tax Auth.
Use these processing options to specify company information and the period and year for which the report is run.
Company
1. Company - CNPJ / CGC |
Enter the CNPJ/CGC of your company. |
2. Company Name |
Enter your company name. |
3. Contact Person - CPF |
Enter the CPF of the contact person in your company. |
Person
1. Responsible Person - CPF |
Enter the CPF of the person responsible for the submission of magnetic media. |
2. Name of Responsible Person |
Enter the name of the person responsible for the submission of magnetic media. |
3. Area Code |
Specify the prefix for the telephone number. |
4. Telephone Number |
Specify the telephone number of the person authorized to handle questions or problems about the text file. |
5. Responsible for CNPJ - CPF |
Enter the name of the person responsible for the submission of magnetic media. |
Directory
1. Company Number |
Enter the company number. |
2. From Date |
Specify the beginning of the range of dates from which you want to select transactions. |
3. Thru Date |
Specify the end of the range of dates from which you want to select transactions. |
4. Enter the Path for File Creation |
Specify the directory where the system saves the text file that it generates. |
Process
Declarant Nature |
Enter 0 if the company filing the report is a private legal entity other than an investment administration entity. Enter 5 if the company filing the report is a legal entity or federal public entity other than an investment administration entity. |
This section provides an overview of withholding tax reports and discusses how to:
Run the INSS report.
Set processing options for INSS Report (R76B04001).
Run the FUNRURAL report.
Set processing options for FUNRURAL Report (R76B04002).
Run the DARF report.
Set processing options for DARF (R76B04003).
Run the Statement of Earnings - Individual report.
Set processing options for Statement of Earnings - Individual (R76B04004).
Run the Statement Issue - Corporate report.
Set processing options for Statement Issue - Corporate (R76B04005).
After the system calculates the taxes, you can generate reports and magnetic media to meet legal requirements. You generate a weekly collection report and an annual report that informs the federal Department of Revenue of the individuals and legal entities for whom you calculated taxes.
INSS Report
The INSS Report program (R76B04001) produces a report that contains the withheld amounts of INSS taxes during period (monthly) accounting. You determine the period to report by setting processing options. The system selects data from the F76B0411 table for the period that you select. The report summarizes by voucher the INSS amount that your company withholds, and shows the amounts and open amounts for each company, INSS code, and supplier address book number combination. The report also includes the Código Brasileiro de Operações (CBO) code and the supplier's INSS registration number.
FUNRURAL Report
Use this program to print the withheld amounts of FUNRURAL taxes during period (month) accounting. You determine the period to report by setting processing options. The system selects data from the F76B0411 for the period that you select. The report shows the amounts and open amounts for each company and supplier address book number combination.
DARF Report
Use this program to print the withheld amounts of IR taxes during period (month) accounting. You determine the period to report by setting processing options. The system selects data from the F76B0411 table for the period that you select. The report shows the amounts and open amounts for each company and supplier address book number combination.
You use this report to gather information that is required for the DARF report.
Statement of Earnings - Individual Report
Use this program to print the withheld amounts of IR taxes for individuals during period (month) accounting. This report runs over the F0101 and F76B0411 tables for the period that you select. This program gathers data only for address book records for which the Person/Corporation Code is 1. You determine the period to report by setting processing options.
The report shows the accumulated tax amounts and the basis of the calculation for each IRRF code, address book number, and company.
Statement Issue - Corporate Report
Use this program to print the withheld amounts of IR taxes for corporate entities during period (month) accounting. This report runs over the F0101 and F76B0411 tables for the period that you select. This program gathers data only for address book records for which the Person/Corporation Code is 2. You determine the period to report by setting processing options.
The report shows the accumulated tax amounts and the basis of the calculation for each IRRF code, period, address book number, and company.
Before you complete the tasks in this section:
Add the CBO code to each supplier who is included in the report.
You add this code in the Complementary ID field on the Address Book Additional Information - Brazil form in the Address Book Additional Information - Brazil program (P01012BR).
Run the Tax Calculation ISS, INSS, FUNRURAL (R76B4310) to calculate the INSS taxes for suppliers.
Select A/P Tax Processing - Brazil (G76B0414), INSS Report.
Use these processing options to specify the period and year for which the report is run.
INSS
1. Period Number - General Ledger |
Enter the period number of the reporting period. |
2. Fiscal Year |
Specify the fiscal year for the month that you specify in the Month processing option. You must complete this processing option. |
Select A/P Tax Processing - Brazil (G76B0414), FUNRURAL Report.
Use these processing options to specify the period and year for which the report is run.
FUNRURAL
1. Period Number - General Ledger |
Specify the reporting period. |
2. Fiscal Year |
Specify the fiscal year for the month that you specify in the Month processing option. You must complete this processing option. |
Select A/P Tax Processing - Brazil (G76B0414), DARF.
Use these processing options to specify the period and year for which the report is run.
DARF
1. Period Number - General Ledger |
Specify the reporting period. |
2. Fiscal Year |
Specify the fiscal year for the month that you specify in the Month processing option. You must complete this processing option. |
Select A/P Tax Processing - Brazil (G76B0414), Statement of Earnings - Individual.
Use these processing options to specify the range of dates for which the report is run.
Period
1. From Date |
Specify the beginning of the range of dates from which you want to select transactions. |
2. Thru Date |
Specify the end of the range of dates from which you want to select transactions. |
Company
1. Company |
Specify the company for which you want to process nota fiscal data. If you leave this processing option blank, the system processes records for all companies. |
2. Responsible Name For Information: |
Enter the name of the person responsible for the submission of magnetic media. |
Select A/P Tax Processing - Brazil (G76B414), Statement Issue - Corporate.
Processing options enable you to specify the default processing for programs and reports.
Period
1. From Date |
Specify the beginning of the range of dates from which the system selects transactions. |
2. Thru Date |
Specify the end of the range of dates from which the system selects transactions. |
Company
1. Company |
Specify the company for which you process nota fiscal data. If you leave this processing option blank, the system processes records for all companies. |
2. Responsible Name for the Information: |
Enter the name of the person who is responsible for the submission of magnetic media. |