Assessing PIS and COFINS

Note:

To access the Brazil Reports documentation in Brazilian Portuguese (Português do Brasil), see Brazil Reports.

The Programa de Integração Social (PIS) and Contribuição para o Financiamento da Seguridade Social (COFINS) taxes apply to services provided and received in Brazil.

The PIS and COFINS assessment calculates the taxes paid and the taxes due on NetSuite transactions. The result of the assessment is a summarized report and the total of PIS and COFINS due or the PIS and COFINS credit.

To assess PIS and COFINS, you must calculate taxes in your transactions with the SuiteTax Latam Engine tax engine. You must also calculate these taxes applying the proper parameters.

To ensure NetSuite accounts for all of your eligible transactions, set up your account and create your transactions as described in the following help topics:

The PIS and COFINS assessment record enables you to define the adjustment amounts that should be added or deducted from the assessment. In the assessment record, you can also enter balances from previous assessments that entitle your company to tax credit.

Tip:

You can leverage the inbound goods, outbound goods, provided services, and received services fiscal books to review the assessment report. For more information about generating the fiscal books, see Generating Country Tax Reports for Brazil.

To assess PIS and COFINS:

Go to Reports > Brazil Reports > PIS and COFINS Assessment > New.
In the Subsidiary field, select the subsidiary whose PIS and COFINS amounts you want to assess.
In the Tax Incidence field, select the tax incidence you want to associate with the assessment.
- If the subsidiary's tax regime is lucro real, select 1 - Regime Não-Cumulativo or 3 - Regimes Não-Cumulativo e Cumulativo.
- If the subsidiary's tax regime is lucro presumido, select 2 - Regime Cumulativo.
If the tax incidence you associated with the assessment is 1 - Regime Não-Cumulativo or 3 - Regimes Não-Cumulativo e Cumulativo, in the Common Credits Appropriation Method field, select the method of appropriation of common credits.
In the Type of Assessed Contribution field, select the type of contribution assessed in the period.
In the Start Date field, select the start date of the assessment period.
In the End Date field, select the end date of the assessment period.

NetSuite uses the start and end dates to determine the posting period to which the assessment applies. You cannot create, edit, or generate a report for the assessment after the posting period closes.
To enter a debit or credit adjustment to the tax amounts assessed on outgoing transactions, do the following:
1. Click the Outgoing Transactions subtab.
  
  Outgoing transactions are transactions from your subsidiary to another company or individual. Sales transactions, such as invoices, are the most common outgoing transactions.
2. To enter a debit or credit adjustment to the PIS amounts assessed on outgoing transactions, do the following:
  1. Click the PIS subtab.
  2. In the Credit Adjustments field, enter the total amount from adjustments that should add to the PIS amount on outgoing transactions.
  3. In the Debit Adjustments field, enter the total amount from adjustments that should subtract from the PIS amount on outgoing transactions.
3. To enter a debit or credit adjustment to the COFINS amounts assessed on outgoing transactions, do the following:
  1. Click the COFINS subtab.
  2. In the Credit Adjustments field, enter the total amount from adjustments that should add to the COFINS amount on outgoing transactions.
  3. In the Debit Adjustments field, enter the total amount from adjustments that should subtract from the COFINS amount on outgoing transactions.
To enter a debit or credit adjustment to the tax amounts assessed on incoming transactions, do the following:
1. Click the Incoming Transactions subtab.
  
  Incoming transactions are transactions from other companies or individuals to your company. Purchase transactions, such as vendor bills, are the most common incoming transactions.
2. To enter a debit or credit adjustment to the PIS amounts assessed on incoming transactions, do the following:
  1. Click the PIS subtab.
  2. In the Credit Adjustments field, enter the total amount from adjustments that should add to the PIS amount on incoming transactions.
  3. In the Debit Adjustments field, enter the total amount from adjustments that should subtract from the PIS amount on incoming transactions.
3. To enter a debit or credit adjustment to the COFINS amounts assessed on incoming transactions, do the following:
  1. Click the COFINS subtab.
  2. In the Credit Adjustments field, enter the total amount from adjustments that should add to the COFINS amount on incoming transactions.
  3. In the Debit Adjustments field, enter the total amount from adjustments that should subtract from the COFINS amount on incoming transactions.
To add summarized PIS and COFINS credit balances from the previous assessment period, do the following:
1. Click the Assessment subtab.
2. To add a PIS summarized credit balance, do the following:
  1. Click the PIS subtab.
  2. In the Previous Credit Balance field, enter the PIS balance.
3. To add a COFINS summarized credit balance, do the following:
  1. Click the COFINS subtab.
  2. In the Previous Credit Balance field, enter the COFINS balance.
To add detailed credit balances, see steps 11 and 12.
Click Save.

NetSuite saves the assessment report.
To add detailed credit balances from the previous assessment periods for PIS and COFINS, do the following:
1. Click the Assessment subtab.
2. Click the PIS and COFINS Credit Balance subtab.
3. Click New PIS and COFINS Credit Balance.
4. In the Tax field, select the tax about which you are entering credit information: PIS or COFINS.
5. In the Assessment Period field, select the period in which the operation that entitles you to tax credit were carried out.
6. In the Type of Origin field, select the origin of the PIS or COFINS tax credit.
7. If the type of origin is credit transferred by another company, in the Federal Tax Registration of the Origin field, enter the federal tax registration number of that company.
  
  NetSuite supports Cadastro Nacional da Pessoa Jurídica (CNPJ) numbers as federal tax registration.
8. In the Type of Credit field, select the code assigned by the Sistema Público de Escrituração Digital (SPED) to the type of PIS or COFINS tax credit you received.
9. In the Credit Amount field, enter the amount of PIS or COFINS tax credit you received.
10. In the Previously Used Credit field, enter the amount of PIS or COFINS tax credit you already used.
11. In the Credit Balance Used in This Period field, enter the amount of PIS or COFINS tax credit you used in the current assessment period.
12. Click Save.
  
  Repeat the previous steps to add multiple credit balances.
To add detailed withheld credit balances for PIS and COFINS, do the following:
1. Click the Assessment subtab.
2. Click the PIS and COFINS Withheld Credit Balance subtab.
3. Click New PIS and COFINS Withheld Credit Balance.
4. In the Tax field, select the tax about which you are entering the withheld credit information.
5. In the Assessment Period field, select the period in which the operations were carried out.
6. In the Nature of the Withholding field, select the code assigned by the Sistema Público de Escrituração Digital (SPED) to the type of credit withholding you are entering.
7. In the Withheld Credit Amount field, enter the amount of PIS or COFINS tax credit withheld.
8. In the Previously Used Withheld Credit field, enter the amount of PIS or COFINS tax withheld credit you already used.
9. In the Withheld Credit Balance Used in This Period field, enter the amount of PIS or COFINS tax withheld credit you have left.
10. Click Save.
  
  Repeat the previous steps to add multiple withheld credit balances.
If you performed operations outside of your main business activity that resulted in expenses or revenue, do the following:

For example, you may have expenses with items for resale that can entitle you to tax credit. Or you may receive revenue from rent that can subject you to contribution.
1. Click the Other Credits or Contributions subtab.
2. Click New Other Source for PIS and COFINS.
3. In the Subsidiary field, select the subsidiary involved in the operation that entitles you to tax credit or contribution.
4. In the Type of Operation field, select the type of operation that entitles you to the credit or contribution.
5. In the PIS CST Code field, select the Código de Situação Tributária (CST) code used for calculating the PIS amount applicable to the credit or contribution.
6. In the COFINS CST Code field, select the CST code used for calculating the COFINS amount applicable to the credit or contribution.
7. If the credit or contribution comes from an operation involving a customer or vendor, in the Customer or Vendor field, select a customer or vendor.
8. If the credit or contribution comes from an operation involving an item, in the Item field, select an item.
9. In the Date field, select the date of the operation that entitles you to the credit or contribution.
  
  The date must be within the period comprised by the start and end dates you selected on the PIS and COFINS assessment record.
10. In the Amount field, enter the amount of the revenue or expense that you want to include in the PIS and COFINS assessment.
11. In the PIS Calculation Basis field, enter the amount used as basis for calculating the PIS amount applicable to the credit or contribution.
12. In the PIS Rate field, enter the tax rate used for calculating the PIS amount applicable to the credit or contribution.
  
  After you enter the calculation basis and tax rate, the PIS Amount field displays the amount of PIS applicable to the credit or contribution.
13. In the COFINS Calculation Basis field, enter the amount used as basis for calculating the COFINS amount applicable to this credit or contribution.
14. In the COFINS Rate field, enter the tax rate used for calculating the COFINS amount applicable to this credit or contribution.
  
  After you enter the calculation basis and tax rate, the COFINS Amount field displays the amount of COFINS applicable to the credit or contribution.
15. If you are entering a tax credit, in the Nature of the Calculation Basis for Credit field, enter the code assigned by SPED to the nature of the amount used as basis for calculating the PIS and COFINS credits.
  
  For example, enter 01 if the credit comes from the acquisition of goods for resale.
16. If you are entering a tax credit, in the Origin of the Credit field, select the origin of the amount that entitles you to PIS and COFINS credit.
17. In the Account field, select the account to which to post the contribution or credit.
18. In the Description field, enter a description for the contribution or credit.
19. Click Save.
  
  Repeat the previous steps to add more credits or contributions.
To generate the assessment report, click Generate Report.

If the assessment covers a long period, the report generation may take a few minutes to complete. You can monitor the progress on the Country Tax Reports page. For more information, see Monitoring the Generation of Tax Assessment Reports.

NetSuite notifies you through email when the report becomes available. The system also updates the assessment record with the calculated tax amounts.
When you receive the email confirming that the report was generated, in the Report field, click View.

NetSuite opens the Country Tax Report - Brazil page.
Click the PDF icon to download the report.

To assess PIS and COFINS:

Related Topics