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. In addition, the system manages credit balances received and withheld, automatically transferring any remaining balances to the next period.

You can complement the assessment by adding the following information:

Adjustment amounts to be added or deducted from the assessment.
Additional credit balances from the previous assessment period.
Withheld credit balances from the previous assessment period.
Credit balances transferred from another company, for example, due to a merger, acquisition, or incorporation.
Other sources of PIS and COFINS credits and contributions.

The result of the assessment is a summarized report and the total of PIS and COFINS due or 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, you must calculate taxes on your transactions with the SuiteTax Latam Engine tax engine. Make sure you also use the appropriate parameters when calculating these taxes.

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:

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.

If you select a parent company, NetSuite considers the incoming and outgoing transactions from child subsidiaries in the assessment.
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 you chose 1 - Regime Não-Cumulativo or 3 - Regimes Não-Cumulativo e Cumulativo for tax incidence, 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 can't create, edit, or generate a report for the assessment after the posting period closes.
If you want to assess PIS and COFINS amounts withheld on outgoing service transactions, choose the assessment method:

Important:
You must choose the assessment method based on the withholding method set for the Type of Date parameter type in your tax determination rules. NetSuite uses this parameter to identify whether PIS and COFINS were withheld on certification or payment. For more information, see Parameter Types for Brazil.
- Include Withheld Taxes Assessed on an Accrual Basis – The system includes in the assessment PIS and COFINS withheld on outgoing service transactions certified in the period.
- Include Withheld Taxes Assessed on a Cash Basis – The system includes in the assessment PIS and COFINS withheld on outgoing service transactions paid during the period.
When you save the PIS and COFINS assessment record, NetSuite searches for eligible transactions and lists them in the Outgoing Withheld Taxes subtab.
If you want to assess PIS and COFINS credits or contributions from other sources, check the Include Other Credits or Contributions box.

Other sources of credits or contributions are operations outside of your main business activity that resulted in expenses or revenue. For example, you may have expenses from items for resale that can entitle you to tax credit. Or you may receive revenue from rent that's subject to contribution.
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.
Click Save.

NetSuite saves the assessment report.
Refresh the page until it enables the Generate Report button.

NetSuite enables the button when it finishes searching for information in your account relevant to the assessment.
If you checked the Include Withheld Taxes box, do the following:
1. Click the Outgoing Withheld Taxes subtab.
2. Review the withheld PIS and COFINS records and complete the withholding information.
  
  For more information, see Including PIS and COFINS Withholding Information in Assessments.
If you checked the Include Other Credits or Contributions box, do the following:
1. Click the Other Credits or Contributions subtab.
2. Review the other source for PIS and COFINS records.
  
  NetSuite lists other credits or contributions from vendor bills and non-certified invoices with the e-document categories set up in your account. For more information, see Setting Up E-Document Categories for Other PIS and COFINS Sources.
3. (Optional) If you want to include additional credits or contributions to your assessment, create other sources for PIS and COFINS records.
  
  For more information, see Including Other Sources for PIS and COFINS in Assessments.
Review the PIS and COFINS credit balances and define the type of each credit.

NetSuite automatically lists credit balances from transactions performed in the current period and remaining balances from previous assessments.
1. Click the Assessment subtab.
2. Click the PIS and COFINS Credit Balance subtab.
3. Next to a PIS and COFINS credit balance, click Edit.
4. In the Type of Credit field, select the code that identifies the type of PIS or COFINS tax credit you received.
  
  The codes are defined by the Sistema Público de Escrituração Digital (SPED) system.
5. Click Save.
  
  Repeat these steps for all credit balances.
Review the PIS and COFINS withheld credit balances and define the nature of the withholding of each credit.

NetSuite automatically lists withheld credit balances from transactions performed in the current period and remaining balances from previous assessments.
1. Click the Assessment subtab.
2. Click the PIS and COFINS Withheld Credit Balance subtab.
3. Next to a PIS and COFINS withheld credit balance, click Edit.
4. In the Nature of the Withholding field, select the code that identifies this type of credit withholding.
  
  The codes are defined by the SPED system.
5. Click Save.
  
  Repeat these steps for all withheld credit balances.
If you have additional credit balances from the previous assessment period or transferred from another company, include them in the assessment manually.

Only include received and withheld credit balances that NetSuite didn't create automatically. For more information, see Including PIS and COFINS Credit Balances in Assessments.
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 emails you when the report becomes available. The system also updates the assessment record with the calculated tax amounts.
When you receive the email confirming the report was generated, in the Report field, click View.

NetSuite opens the Country Tax Report - Brazil page.
Choose the format in which you want to download the report:
- To download the report as a PDF, click the PDF icon.
- To download the report as a XLS, click the XLS icon.
  
  Due to a system limitation, you can only download XLS files with sizes up to 10 MB.

To assess PIS and COFINS:

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