Use
In Brazil, you use the
extended 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:
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 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
These taxes are withheld on purchases from farmers.
Prerequisites
To be able to use extended withholding tax, you must define a number of Customizing settings for Financial Accounting (FI):
Also refer to
Extended Withholding Tax: Customizing.Integration
In Logistics Invoice Verification (MM-IV-LIV), the system can transfer the following withholding tax data to the nota fiscal:
The system sums the amount of these withholding tax types and deducts this from the total value of the nota fiscal.
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 in
Customizing for Invoice Verification. To insert the withholding tax amount into such a header text, use the argument WTAMOUNT.