Understanding Tax Codes for PIS/PASEP and COFINS Tax Credits

The Review AP Tax Code program (P76B0401) enables you to set up tax codes that the system uses to calculate tax credits on notas fiscais. After you set up tax codes in the Review AP Tax Code program, you associate the tax codes with the suppliers on the Tax Information tab of the Address Book Additional Info - Brazil program (P01012BR). You use the Purchase Use Tax Setup - Brazil program (P76B003) to associate purchase use codes with the tax codes. The system uses the associations between the tax codes, purchase use codes, and suppliers to determine how to apply PIS/PASEP and COFINS tax credits.

Note: You must enter a C in the Retention/Aggregation/Credit field (data item BRRTA) for tax codes that you set up for PIS/PASEP and COFINS tax credits. Tax codes that have an R or an A in the Retention/Aggregation/Credit field are not valid tax codes for PIS/PASEP or COFINS credits.