Understanding Tax Calculations for IRPF
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 table. (F76B0402)
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 and IRPJ program to calculate ISS, INSS, and FUNRURAL taxes.
The system uses the tax amounts for ISS, INSS, and FUNRURAL in the calculations for IRPF.
If a voucher is subject to IRPF tax, the system performs these actions when you run the Create Payment Groups program:
Checks the Voucher Tax Processed table (F76B4012) to verify that ISS, INSS, and FUNRURAL taxes were calculated.
For payments to suppliers, checks whether 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 table (F76011).
Uses the INSS maximum amount for the month to determine the applicable amount.
The system saves the INSS maximum amount to the F76B4012 table when the system calculates 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 table (F76B0411) for IR withholding.
Writes two lines to the F0411 table: one that is a positive amount that is paid to the fiscal authority and one that is a negative amount that is paid with the voucher.
Updates the Tax Accumulates by AN8, Company table (F76B4017).
The system accumulates by month, tax ID of the supplier, tax ID of the company, and tax type (IRPF or INSS) the gross amounts and contribution amounts paid.