IRRF Calculation (Brazilian Hub SuiteApp)
The Imposto de Renda Retido na Fonte (IRRF) tax applies to revenue from legal entities and natural persons. The collection of IRRF occurs when a company or person receives the revenue. The IRRF tax acts as an anticipation of the collection of the Imposto de Renda (IR), the federal income tax, which the payment source must assess and withhold.
Setting Up IRRF PJ Calculation
The Imposto de Renda Retido na Fonte da Pessoa Jurídica (IRRF PJ) tax applies to services that legal entities provide or hire.
To set up IRRF PJ calculation:
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Go to BRHub > Fiscal > Parametrização de Impostos de Serviço.
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Click Edit.
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Click the IRRF subtab.
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(Optional) If you want NetSuite to post the IRRF PJ amounts only when you receive the payments for services provided, check the IRRF no Recebimento box.
When you check this box, NetSuite posts the offset for IRRF PJ receivable amounts when you receive the payment. When you create a transaction, NetSuite posts the IRRF PJ amount to a transitory account, until you record the payment.
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(Optional) If you check the IRRF no Recebimento box, in the Conta Contábil field, select the ledger account to which to post the debits for the IRRF PJ amounts posted when receiving payments.
The IRRF PJ credit is automatically posted to the accounts payable selected on the IRRF-PJ-RETIDO tax type record. For more information about the Brazilian tax types, see Creating Tax Type Records for Brazil in Accounts Without SuiteTax (Brazilian Hub SuiteApp) and Brazilian Tax Types in Accounts With SuiteTax (Brazilian Hub SuiteApp).
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Click the IRRF PJ sublist.
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In the Lista de Atividade column, select the service provided or hired.
The column displays the services listed on the attachment of the tabela progressiva do imposto de renda chart.
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In the Alíquota column, enter the IRRF PJ rate on the service.
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In the Valor Mínimo column, enter the minimum amount required to collect the IRRF PJ tax.
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In the Data Inicial Vigência column, enter or select the start date for the effectiveness of the parameter.
The start date is the date on which the parameter takes effect for transactions subject to IRRF PJ. The date is usually defined by law.
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(Optional) If the parameter expires on a date predetermined by law, in the Data Final Vigência column, enter or select the end date for the effectiveness of the parameter.
The end date is the date on which the parameter expires, losing its effect. You can edit this field later if the law changes and affects the effectiveness of the parameter.
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(Optional) If the parameter should only apply to a certain service item, in the Itens de Serviço column, select the service item the parameter applies to.
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(Optional) If NetSuite must take into account the IRRF PJ amount from transactions using this parameter in the calculation basis for the Contribuições de Intervenção no Domínio Econômico (CIDE) tax on services imports, check the BC do CIDE Importação box.
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(Optional) If the IRRF PJ tax burden is the purchaser’s responsibility, check the Ônus do IRRF box.
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Click Add.
Repeat the previous steps to add parameters for as many services as required.
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Click Save.
Setting Up IRRF PF Calculation
The Imposto de Renda Retido na Fonte para Pessoa Física (IRRF PF) tax applies to services that workers registered as natural persons provide or hire. The IRRF PF tax is also levied on property rental from natural persons.
You must create IRRF PF parameters according to the tabela progressiva do imposto de renda (income tax chart), provided by the Brazilian Receita Federal.
To set up IRRF PF calculation:
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Go to BRHub > Fiscal > Parametrização de Impostos de Serviço.
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Click Edit.
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Click the IRRF subtab.
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(Optional) If your company meets the criteria to be exempt from withholding the IRRF PF tax, in the Imposto Valor Mínimo field, enter the minimum amount for withholding IRRF.
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Click the IRRF PF sublist.
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In the Valor Base column, enter the basis amount for calculating IRRF PF.
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In the Alíquota column, enter the IRRF PF rate on the calculation basis.
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In the Valor à Deduzir column, enter the amount the system must deduct from IRRF PF amounts calculated with this parameter.
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In the Base Valor Mínimo column, enter the minimum amount to calculate IRRF PF within the basis you entered on the Valor Base column.
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In the Base Valor Máximo column, enter the maximum amount to calculate IRRF PF within the basis you entered on the Valor Base column.
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In the Data Inicial Vigência column, enter or select the start date for the effectiveness of the parameter.
The start date is the date on which the parameter takes effect for transactions subject to IRRF PF. The date is usually defined by law.
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(Optional) If the parameter expires on a date predetermined by law, in the Data Final Vigência column, enter or select the end date for the effectiveness of the parameter.
The end date is the date on which the parameter expires, losing its effect. You can edit this field later if the law changes and affects the effectiveness of the parameter.
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Click Add.
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Repeat the previous steps to add parameters for as many IRRF PF calculation basis as required.
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Click Save.