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Withholdings at Source

Withholdings are taxes retained by the payer (customer) that must be tracked, reported, and offset.

Withholding Types​

TaxDescription
ISSWithheld by the service recipient
IRRFWithholding income tax
CSRFPIS + COFINS + CSLL combined (4.65%)
INSSSocial security contribution

Withholding Fields​

FieldDescription
InvoiceSource invoice
NF-eRelated fiscal invoice
Tax typeWhich tax was withheld
Base (cents)Calculation base
RateWithheld percentage
Amount (cents)Withheld amount
WithholderEntity that withheld (usually the billing account)
Competence month/yearAccounting period
StatusWithholding status
Offset (cents)Amount already used to deduct taxes

Withholding Status​

StatusDescription
retainedRecorded, not yet offset
compensatedFully offset
partially_compensatedPartially offset

Flow​

  1. Creation: Automatically generated from the tax calculation of each invoice
  2. Retention: The amount is withheld by the customer at the time of payment
  3. Tracking: Stored by competence month/year
  4. Offset: Applied to reduce the tax liability in subsequent periods
  5. Reconciliation: Reported in tax filings

Configuration per Customer​

Each billing account can have individual withholding flags:

  • withholdIss — Withhold ISS
  • withholdIrrf — Withhold IRRF
  • withholdCsrf — Withhold CSRF (PIS/COFINS/CSLL)
  • withholdInss — Withhold INSS

These flags override the default behavior of tax rules.