Tasks to be completed when documenting an operation (from creation to publication)

 1. Enter the Title of the operation / page

2. Add the following Labels : 

    • Scope of applicability: ww, country_accounting 

    • Country or group of countries (if applicable): belux, china, france, italy, lam, nam, uk_ie, bulgaria, dach, netherlands, iberia, poland, latvia, australia, india, japan, south_korea, thailand, singapore, new_zealand, emea_transversal, apac_transversal

    • Unit and Domain according to the List of labels to be used in the Finance Service Line space

      • E.g. 1: WW Operation in Financial Accounting under domain "Central Finance Processes & Compliance":
        • Labels to be used: ww, financial_accounting, central_fin_proc_compliance

      • E.g. 2: France Operation in Financial Accounting:
        • Labels to be used: country_accounting, france, financial_accounting
          (for country operations, the Domain is always country_accounting)


3. Fill in all fields as described above

4. Name the title of each section using OPD methodology naming convention - Infinitive verb without the “to”, mainly action verb...something) - " I do something..."

5. Once the description of the operation is completed, ensure it is approved and published by launching the SBS-Finance approval workflow 


Domain: 1. Enter the Domain identified in OPD matrix (for Country specific operations, Domain = Country Accounting)

Responsibility area: 2. Enter the responsibility area described in OPD matrix ("N/A" for Country Accounting Operations)

Table of contents 

By default the table of contents displays Heading 1 & Heading 2 (other levels can be added)


Scope

3. Remove the icon when not applicable


ERP

4. Remove the icon(s) when not applicable

PF2 WP2 PE2 PI2


Frequency

5. Remove the icon(s) when not applicable

 

References

6. Add the link to SAP transaction(s) (when it exists)



Forms

7. Insert the links accordingly and change the link text with the Form name



Attachments

8. Add the link to attachments or external links


 

 

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1. Objective and Scope

1.1. Objective of this Operation

The monthly calculation of IRRF (Withholding Income Tax) and PCC (PIS, COFINS, and CSLL) is a fundamental process to ensure the proper fulfillment of the company’s tax obligations. This procedure involves collecting, analyzing, and checking all financial transactions subject to the withholding of these taxes throughout the month.

Initially, balances and relevant transaction data are extracted from internal systems and organized into specific spreadsheets for each tax. Next, the operations are classified, identifying the nature of each entry and the respective tax code, such as code 1708 for IRRF.

After consolidating the information, a reconciliation is performed between internal records and files received from the tax teams, ensuring that all amounts are correct and properly justified. Finally, the calculated data is reviewed, validated, and sent to the team responsible for submitting the information to the tax system, ensuring compliance with current legislation.

This process contributes to the transparency, control, and fiscal regularity of the company, minimizing the risk of tax assessments and ensuring the correct payment of taxes.


 1.2. Scope

Brazilian companies identified by the codes 6409 and 6416.


2. Definitions

Definitions should be added in the Finance Glossary - Add definition and link it to respective Letter in Finance Glossary 

See Finance Glossary:

  • OneService
  • TaxOne

3. Tasks description

WHAT and HOW - Main content of the operation

IRRF (Withholding Income Tax) is a federal tax withheld directly at the source on certain payments, such as salaries, services provided by individuals or legal entities, rent, among others.
Collection: The paying source is responsible for calculating, withholding, and remitting the tax to the Federal Revenue Service.
PCC (PIS, COFINS, and CSLL Withheld at Source) refers to the withholding of three federal taxes:
What it is: PIS (Social Integration Program), COFINS (Contribution for the Financing of Social Security), CSLL (Social Contribution on Net Profit).
Application: Applies to payments made by legal entities to other legal entities for the provision of services specified by law.
Collection: The contracting company withholds the amount and remits it to the public treasury.
Important Notes:  Legislation may vary depending on the type of service, the nature of the contracting and contracted parties, and legal updates.
The objective is to anticipate the collection of the Income Tax owed by the beneficiary of the income.
The IRRF rate can range from 1% to 1.5% and PCC as follows:
Rates:
IRRF: 1.0% or 1.5%
PCC: 4.65% (PIS: 0.65%, COFINS: 3.0%, CSLL: 1.0%)

Select the level of heading in the "Paragraph" option.

3.1. Responsibility:

The responsibility for reconciling accounts related to taxes typically falls under the fiscal or tax department.


3.2. Periodicity: 

The account reconciliation process should be performed monthly as part of good accounting practices and internal control requirements. This procedure ensures that the account balances are accurate and consistent with supporting documents.

3.3. Process:

After closing, we receive the file in .txt format from the Taxpricingit team.
We must carry out the calculation and all tax controls in an Excel file (“0000 – IRRF Calculation mm/yy” and “0000 – PCC Calculation mm/yy”).


The first step is to extract the balance from the FS10N transaction, take a screenshot of the screen, and insert it into the tab of the file called Balances.



Next, extract the data using the /IRRFPCC layout and paste the information into the Ledger tab.
In column O, it is necessary to indicate what each transaction refers to, so that it is possible to determine the amount to be paid for the period.



The file we will receive from the TaxOne team will contain information on IRRF and PCC. We must filter code 1708 for IRRF and paste the data into the 1708 MSAF tab of the file.



The reconciliation must be performed between the LEDGER and 1708 MSAF tabs.
After the reconciliation, the TXT file must contain the same data as the Ledger tab, with items being excluded or added as necessary.
Once the file is correctly formatted, send it by email to the TaxOne team so that it can be uploaded into the tax system.
It is also necessary to update the PIVOT table in the Reconciliation Cover tab.
Additionally, update the fields marked in yellow and check if the balance matches the Balances tab.


The final check is to verify that the total in the Ledger tab matches the total in the MSAF tab.

Add the value from the Ledger to the value from the TXT documents; the result must be zero.


End of document.