Setting Up Subsidiaries for Brazil

Note:

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

Brazil Localization provides specific fields in subsidiary records that enable you to enter information relevant to your company in Brazil.

Before setting up a subsidiary for Brazil, you must verify that your NetSuite role has the appropriate permissions to edit subsidiary records.

For more information about creating a subsidiary record, see the following topics:

Some fields and subtabs do not appear until you save the subsidiary record for the first time.

To set up a subsidiary for Brazil:

Go to Setup > Company > Classifications > Subsidiaries.
Click Edit next to the subsidiary you want.
In the Federal Tax Registration field, enter the subsidiary’s federal tax registration number.
- If the subsidiary record represents a company, enter the Cadastro Nacional de Pessoas Jurídicas (CNPJ) number. You can enter the 14-digit number using one of the following formats: 00000000000000 or 00.000.000/0000-00.
- If the subsidiary record represents an individual, enter the Cadastro de Pessoas Físicas (CPF) number. You can enter the 11-digit number using one of the following formats: 00000000000 or 000.000.000-00.
(Optional) If the subsidiary is subject to state taxes, in the State Tax Registration field, enter the subsidiary's state tax registration number.
(Optional) If the subsidiary is subject to municipal taxes, in the Municipal Tax Registration field, enter the subsidiary's municipal tax registration number.
(Optional) If you want NetSuite to automatically populate the e-document category in transactions involving the subsidiary, in the Default E-Document Category field, select the e-document category.
In the Canceled Sales Account field, select the default account to which to post amounts from canceled sales transactions involving this subsidiary.

When you cancel an invoice, NetSuite reverses GL entries related to the transaction. In general, the canceled sales account is a cost of goods sold account.
In the Inventory Adjustment Account field, select the default account to which to post amounts from inventory adjustments for inbound or outbound deliveries.

When you create inbound or outbound delivery transactions involving inventory items, NetSuite creates inventory adjustments to update quantities and values in your stock.
In the SuiteTax Latam Engine Line of Business field, select the line of business in which the subsidiary operates.
In the SuiteTax Latam Engine Tax Regime field, select the tax regime to which the subsidiary adheres.

For more information, see Associating Tax Regime and Line of Business with Subsidiaries.
(Optional) If the subsidiary is entitled to a tax relief under Brazil's Federal Law for Cultural Incentive (PRONAC 8.313/1991), check the Cultural Sponsor box.
(Optional) If you selected Optante pelo Simples Nacional as the tax regime, in the CRT Code field, select the Código de Regime Tributário (CRT) code that applies to the subsidiary.
In the Primary CNAE Code field, select the Classificação Nacional de Atividades Econômicas (CNAE) code that identifies the subsidiary's main economic activity.

CNAE is a standardized register of economic activities maintained by Brazil's Instituto Brasileiro de Geografia e Estatística (IBGE).
In the Secondary CNAE Codes field, select one or more CNAE codes that identify the subsidiary's additional economic activities.
If the subsidiary does business in the Manaus Free Trade Zone, in the SUFRAMA Registration field, enter the number of its SUFRAMA registration.

SUFRAMA stands for Superintendência da Zona Franca de Manaus. You can enter the 9-digit number in the following formats: 000000000 or 00.0000.00-0.
If you have the Brazil Reports SuiteApp installed on your account and your company manufactures goods or is comparable to a manufacturer, do the following:
1. Check the Manufacturer or Comparable to a Manufacturer box.
2. In the Classification of the Manufacturer field, select its classification according with the Sistema Público de Escrituração Digital (SPED).
Add the subsidiary’s address.
1. Click the Addresses subtab.
2. In the Address field, click Edit.
3. In the Country field, select Brazil.
4. In the Address field, enter the address with the street suffix (for example, avenue, boulevard, road, route and street) and street name.
5. In the Number field, enter the address number.
  
  An address number can contain numbers and letters.
6. In the Address Complement field, enter additional information that helps to locate the address.
  
  For example, you can indicate whether the address is a house or an apartment.
7. In the District field, enter the name of the district where the address is located.
8. In the City from Brazil field, select the city where the address is located.
  
  When you select a city, the State field automatically displays the acronym of the state associated with the city.
9. In the ZIP field, enter the postal code of the address.
10. Click OK.
Note:
If you have a language other than English (U.S.), Español (Latinoamérica), or Português (Brasil) set on your personal preferences, the Address, Number, and District fields are labeled as Address 1, Address 3, and Address 2, respectively.

For more information, see General Personal Preferences.
(Optional) If your company sells or purchases goods, enter the address for receiving shipments.

NetSuite uses the shipping address for tax determination and calculation purposes.

To add a specific address for receiving shipments, do the following:
1. In the Shipping Address field, click Edit.
2. Repeat steps C through J from step 17.
To calculate taxes with the SuiteTax Latam Engine, assign a tax registration to the subsidiary.

To assign a tax registration, do the following:
1. Click the Tax Registration subtab.
2. In the Country column, select Brazil.
  
  When you select the country, the Nexus column automatically displays the Brazil nexus. If a tax agency is associated with the nexus record, the Tax Agency column is also populated with the tax agency.
3. If no tax agency appears in the Tax Agency column, review the nexus record and verify if there is a tax agency set.
  
  For more information about nexuses and tax agencies, see Setting Up Nexuses in SuiteTax.
4. In the Tax Engine column, select SuiteTax Latam Engine Plug-in.
5. In the Effective From column, select a date from which the nexus is in effect for the subsidiary.
6. Click Add.
(Optional) If you want to associate tax substitute registration numbers with this subsidiary, do the following:
1. Click the Tax Substitute Registration subtab.
2. In the State field, select the state that issued the state tax registration number you want to use for tax substitution.
  
  A subsidiary can have one tax substitute registration per Brazilian state.
3. In the Tax Substitute Registration field, enter the state tax registration number you want to use for tax substitution.
4. Click Add.
Click Save.

To set up a subsidiary for Brazil:

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