Understanding Purchase Use Codes for PIS/PASEP, COFINS, and CSLL Contributions

You use the Purchase Use Tax Setup program (P76B003) to create associations between purchase use codes that exist in the Purchase Use (76/PU) UDC table and tax codes that exist in the F76B0401 table.

When you run the Tax Calculation ISS, INSS, FUNRURAL and IRPJ (R76B4310) program, the system accesses the associations between the purchase use codes and tax codes that you set up in the Withholding Information section of the Purchase Use Tax Setup - Brazil program. The system uses the associations to determine whether to calculate PIS/PASEP and COFINS withholding taxes. The system then reads the F76B0401 table to determine the tax rate that applies to an item or service.