In Brazil, you use theextended withholding tax function; and withholding tax is levied when you enter an invoice.
When you create a company code using the template for Brazil, the system automatically makes all the settings required for the following withholding taxes:
- ISSF (in Portuguese, Imposto Sobre Servicos na Fonte)
If the vendor is a natural person and is not registered in the city where he or she is providing the service, then the customer withholds
- IRRF (in Portuguese, Imposto de Renda Retida na Fonte)
IRRF is withheld in certain cases. The system does not calculate IRRF automatically; you must, therefore, set the applicable percentage rate for each business transaction using a specific withholding code, IRRF for companies (which can also be applied in combination with
- FCPS and FUNRURAL
These taxes are withheld on purchases from farmers.
To be able to use extended withholding tax, you must define a number of Customizing settings for Financial Accounting (FI):
Also refer toExtended Withholding Tax: Customizing.
In Logistics Invoice Verification (MM-IV-LIV), the system can transfer the following withholding tax data to the nota fiscal:
- The withholding tax amount for selected withholding tax types
The system sums the amount of these withholding tax types and deducts this from the total value of the nota fiscal.
- Generated variable header texts with the withholding tax amount for selected withholding tax types
To activate the value transfer, assign the text key for the header text, and define text keys and corresponding texts, you need to make the appropriate settings inCustomizing for Invoice Verification. To insert the withholding tax amount into such a header text, use the argument WTAMOUNT.