Law No. 13,137 / 2015, published on June 22, 2015, amended the regulations for withholding tax calculations and payment on the sale of services. The amended regulations requires the withholding to be paid when the total of the Programa de Integração Social (PIS), Contribuição para Financiamento da Seguridade Social (COFINS), and Contribuição Social sobre o Lucro Líquido (CSLL) amounts exceed the established minimum. In the JD Edwards EnterpriseOne software, the calculation and payment based on the tax amounts per payment is referred to as Withholding Method 1.
Prior to the amended legislation, the JD Edwards EnterpriseOne system provided a method of accumulating and paying withholding amounts for the sale of services based on the accumulated amount of the payments in a month for services sold. In the JD Edwards EnterpriseOne system, the calculation and payment based on the accumulated services-sold payments is referred to as Withholding Method 2.
If you set up and used the withholding solution for the sale of services prior to the software update that introduced the payments based on the withholding amounts (Method 1), your system is likely set up to use the accumulated monthly payment amounts method (Method 2) to calculate and process withholding on services sold. The system enables you to continue using the accumulated payment amounts method.
Oracle does not provide a legal opinion about which organizations must calculate and withhold taxes and contributions using the new regulations that base the withholding on the tax amounts. You must determine which withholding calculation method to use.