Brazilian withholding taxes

This article describes how to set up a withholding tax code, a withholding tax type, and a calculation parameter to calculate withholding taxes for consultancy services in Brazil with Microsoft Dynamics 365 Finance.

The following procedure walks you through how to set up a withholding tax code, a withholding tax type, and a calculation parameter to calculate withholding taxes for consultancy services or professional service payments. The procedure uses the BRMF demo company.

To set up withholding taxes, follow these steps.

1. In Dynamics 365 Finance, go to Tax > Setup > Withholding tax > Withholding tax settlement periods.
2. Select New.
3. In the Settlement period field, enter a value.
4. In the Description field, enter a value.
5. In the Authority field, enter or select a value.
6. In the Period interval unit field, select an option.
7. In the Period interval duration field, enter a number.
8. Select Add.
9. In the list, mark the selected row.
10. In the From date field, enter a date.
11. In the To date field, enter a date.
12. On the Action Pane, select the Action Pane tab.
13. Select New period.
14. Select Save.
15. Close the page.
16. Go to Tax > Indirect taxes > Withholding tax > Withholding tax codes.
17. Select New.
18. In the Withholding tax code field, enter a value.
19. In the Brazilian tax withhold type field, select an option.
20. In the Main account field, enter the desired values.
21. In the Withholding tax receivable field, enter the desired values.
22. In the Settlement period field, enter or select a value.
23. Expand the Calculation section.
24. In the Origin field, select an option.
25. Select Save.
26. Select Values.
27. In the Value field, enter a number.
28. Select Save.
29. Close the page.
30. Go to Tax > Indirect taxes > Withholding tax > Withholding tax groups.
31. Select New.
32. In the Withholding tax group field, enter a value.
33. In the Description field, enter a value.
34. In the Withholding tax code field, enter or select a value.
35. Select Save.
36. Close the page.
37. Go to Tax > Indirect taxes > Withholding tax > Item withholding tax groups.
38. Select New.
39. In the Item withholding tax group field, enter a value.
40. In the Description field, enter a value.
41. In the Withholding tax code field, enter or select a value.
42. Select Save.
43. Close the page.