Understanding Withholding Tax Code Setup

The Review A/P Tax Code program (P76B0401) enables you to set up tax codes that the system uses to calculate withholding taxes on notas fiscais. For example, you can set up codes for PIS/PASEP, COFINS, CSLL, INSS, and so on.

For social security and income taxes for suppliers, you must set up codes that represent each tax that is being withheld or aggregated. You might have more than one code for each tax type for each supplier. For example, you must set up INSS tax codes for each type of service that is provided by a supplier.