INSS

1. Calculate INSS

Enter 1 to calculate INSS taxes.

2. Purchase Use Code

Enter a purchase use code that instructs the system to calculate both retention and aggregation for INSS contributions. A valid purchase use code for this processing option must:

  • Exist in the 76/PU UDC table.

  • Contain valid contribution codes for INSS retention and INSS aggregation in the Description 02 field, with the values separated by a slash (/). You set up valid tax codes in the Tax Code table (F76B0401).

  • Be formatted so that the tax code for INSS retention is to the left of the slash and the tax code for INSS aggregation is to the right of the slash.

For example, if the F76B0401 table contains a value of INSR for INSS retention and a value of INSA for INSS aggregation, the Description 02 field for a valid value for this processing option would be INSR/INSA. In this example, a value of INSA/INSR in the Description 02 field would cause the system to ignore the Purchase Use Code processing option because the tax code for INSS aggregation is to the left of the slash, making the value invalid.

When you complete the Purchase Use Code processing option with a valid value, the system ignores the value in the Brazil Tax Information processing option in this program and calculates both INSS retention and aggregation contributions. If you enter an invalid value in the Purchase Use Code processing option, the system does not calculate INSS contributions. Codes that exist in the 76/PU UDC table are invalid for the Purchase Use Code processing option if no value exists in the Description 02 field or the values are set up incorrectly.

3. 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 table (F76B0401). If you do not complete this processing option, the system uses this hierarchy to determine the tax to apply:

  1. The purchase use code in the Purchase Order Detail Tag File - Brazil table (F76432).

  2. The tax code in the F76011 table for the supplier.

4. 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.

5. Pay Status Code INSS

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.

6. Maximum Retention Amount

Specify the monthly maximum retention amount for suppliers who are individuals. If the sum of the retentions that are calculated for the entire month is more than the amount that is entered in this processing option, no INSS tax is calculated. If you leave this processing option blank, the system uses the maximum retention amount as specified in the 76B/TX UDC table.

Minimum Withholding Amount Individual

Specify the minimum withholding amount for INSS for an individual. The system uses this amount when calculating INSS and IR Withholdings. The system compares the withholding calculation with the amount entered in this field.

The system generates withholding amounts only if the amount calculated is greater than the amount that you enter in this processing option. You must enter an amount greater than or equal to zero.

Minimum Withholding Amount Corporation

Specify the minimum withholding amount for INSS for a corporate entity. The system uses this amount when calculating INSS and IR Withholdings. The system compares the withholding calculation with the amount entered in this field.

The system generates withholding amounts only if the amount calculated is greater than the amount that you enter in this processing option. You must enter an amount greater than or equal to zero.