Brazilian Oracle Tax Cloud

Oracle Tax Cloud – Workshop
Brazilian Taxes
Terence Fracozo – LACLS

August - 2019
Copyright © 2018 Oracle and/or its affiliates. All rights reserved.

Safe Harbor Statement
The preceding is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or
functionality described for Oracle’s products remains at the sole discretion of Oracle.
Copyright © 2018 Oracle and/or its affiliates. All rights reserved. Oracle Confidential – Internal/Restricted/Highly Restricted 2
Agenda
• Objective and Scope
• Overview
• Analyzing
• Foundation
• Tax Rules
Agenda
• Overview
• Analyzing
• Foundation
• Tax Rules
Oracle Tax Cloud
Objective and Scope
• The workshop will provide a best practice to define Brazilian complex tax
rules in the Oracle Tax Cloud
• Scope
– Transaction Tax:
• ICMS: Normal, DIFAL, ST and FECOP
• IPI
– Withholding Tax:
• ISS
• IR-PF
• INSS-PF
Agenda
• Overview
• Analyzing
• Foundation
• Tax Rules
Oracle Tax Cloud
Overview
 Address Structure
 Geography Pre-Setup
 GL Account Ledger
• It is the tax engine to support tax requirements

for all countries Regime
Tax
• It is organized in several structures giving great Tax Recovery
flexibility Jurisdiction
• Regime is the highest structure dividing the tax in Status
two groups: Transaction Tax and Withholding Tax Rate
Rule
Rule
s
Agenda
• Overview
• Analyzing
• Foundation
• Tax Rules
Oracle Tax Cloud
Analyzing
• What is the business of the company?

• What is the regional scope of the business?
• What are taxes that company should calculated in the your business?
Agenda
• Overview
• Analyzing
• Foundation
• Tax Rules
Oracle Tax Cloud
Foundation
• Foundation tax configuration refers to a set of tax setup Tax Regime
components that will to satisfy the tax simple Tax

Taxes
requirements. Default Rules
Place of Supply
Tax Applicability
Tax Registration
Tax Formulas
Jurisdiction
Status
Rate
Oracle Tax Cloud
Foundation
Componet Task Brazilian ICMS Example
Tax Regime - Define a tax regime for each Brazilian Tax ICMS
- Define country and set of default information
- Associate legal entity or business unit
Tax - Enable controls to influence tax behavior ICMS
- Specify tax rule default
Tax Jurisdictions - Define location-based tax rate Goverment State
Tax Status - Define common status for tax rates Standard
Recovery Rate -Define Recovery Percentage (optional) Rate default for recovery
Tax Rate - Define more rates Rate default based on Jurisdiction
- Define a default Jurisdictions
Oracle Tax Cloud
Foundation
• Example for ICMS “Family”
Tax Regime Tax Regime Tax Regime

ICMS DIFAL ICMS-ST
Tax Tax Tax
Taxes
-ICMS -DIFAL
Taxes Taxes
-ICMS-ST
-ICMS-FECOP -DIFAL-FECOP -ST-FECOP
Agenda
• Overview
• Analyzing
• Foundation
• Tax Rules
Oracle Tax Cloud
Tax Rules
• Simple Tax Rule (foundation)

– Primary rule for calculate tax in the transaction. This rules is classified in the Tax Rule
Defaults
• Complex Tax Rule
– There are more attributes and components to attend a complex scenarios where will
overlap the default rules
Oracle Tax Cloud
Tax Rules
• Simple Tax Rule

– Basic rule associated in the tax defined as Tax Rule Defaults
Oracle Tax Cloud
Tax Rules
• Simple Tax Rule

– Basic rule associated in the tax defined as Tax Rule Defaults
Oracle Tax Cloud
Tax Rules

overlap the default rules.
Transaction Tax Rule Names
Tax Applicability Tax Calculation
Place of Supply Tax Rate
Direct Tax Rate Tax Registration
Recovery Rate Tax Status
Taxable Basis Account-Based
Tax Classification-Based Direct Tax Rate
Oracle Tax Cloud
Tax Rules

overlap the default rules.
Withholding Tax Rule Names
Tax Applicability
Place of Supply
Direct Tax Rate
Taxable Basis
Tax Rate
Tax Registration
Tax Status
Oracle Tax Cloud
Complex Tax Rules
• How to define ICMS Tax?

– ICMS
– DIFAL
– ST
– FECOP or FCP
Oracle Tax Cloud
Complex Tax Rules
• ICMS
– Define default rates for each jurisdiction
– Define Interstate status
– Define the following tax rules
Transaction Tax Rule Names Description Required
Tax Applicability (APP) Define when the tax will be calculated Yes
Place of Supply (POS) Define where the tax will be applied Yes
Taxable Basis Define taxable amount when the operation has IPI Tax No
Tax Status (STS) Define a diffent status based on region Yes
Tax Rate (TRR) Define a different rate based on Status Rules Yes
Oracle Tax Cloud
Complex Tax Rules – ICMS
• Default rates for each jurisdiction

– The system will apply the internal rate based
on jurisdiction
Oracle Tax Cloud
• Jurisdiction
– Geography where the tax will apply
Oracle Tax Cloud
• Status
– Interstate status must be set to apply ICMS rates of 12% and 7% on transactions
issue or buying outside state
Oracle Tax Cloud
• Tax Applicability Rules

– The ICMS tax will use the CFOP to determine the tax calculation
– CFOP (Transaction Business Category)
Oracle Tax Cloud
• Tax Place of Supply Rules

– This setup determine the jurisdiction will be considered to calculate the tax
– Geography concepts in POS
Place od Supply Order-to-Cash Procure-to-Pay

Ship from Warehouse Address Supplier Address
Ship to Customer Address Location Address
– Define Origin and Destination for ICMS Tax
Oracle Tax Cloud

– Tax Determining Factor define as Geography
Qualifier Factor
Ship from State
Ship to State
– Tax Condition define State Values in the Ship From/To and the Operator Function
(equal/not equal)
Oracle Tax Cloud

– Example
Qualifier Operator Value Result
Ship from Equal State Name
Ship to
Ship to Not Equal State Name
– Sales Operation: Customer Address

– Purchase Operation: Location Address
Oracle Tax Cloud
• Tax Status Rules

– Define a rule for Intersate status based on Geography
Qualifier Factor
Ship from State
Ship to State
Oracle Tax Cloud
• Tax Status Rules

– Example
INTERSATE
Ship to Not Equal State Name

Oracle Tax Cloud
• Tax Rate Rules

– Define a rate based in the Intersate status and
Geography
– Define Region for ICMS Tax:
• North
• Northeast
• Central-West
• Southeast
• South
Oracle Tax Cloud
• Tax Rate Rules

– Business Rules
• South/Southeast  North/Northeast/Central-West
– ICMS Tax Rate 7%
• South/Southeast  South/Southeast
• North/Northeast/Central-West  South/Southeast
– ICMS Tax Rate 12%
Oracle Tax Cloud
• Tax Rate Rules

– Example
ICMS-12%
Ship to In Group of States

Tax Cloud
Withholding Tax
• You can set up withholding tax using

– Oracle Payables Cloud
• basic withholding tax requirements for most countries
– Oracle Tax Cloud
• more complex tax requirements
Tax Cloud
Withholding Tax for Brazil
• All Brazilian requirements for withholding tax in the Oracle ERP Cloud were
migrated to Oracle Tax Cloud
– Deduction Amounts
• Per Dependent
• Alimony Amount
• Social Security Contribution
– Number of dependents
– Brazilian IRPF Table
– Threshold Buckets Minimum Amount
– Withholding Calendar
ERP Cloud Brazil
Latin America Cloud Local Solution (LACLS) – Product Code 13207
Oracle Fusion Financials for the Americas – Product Code 2381
Oracle Fusion Tax – Product Code 2366
More information about Tax Cloud

My Oracle Support
Doc ID 2329725.1
LACLS for Brazil
Copyright © 2018 Oracle and/or its affiliates. All rights reserved.

Brazilian Oracle Tax Cloud

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Brazilian Oracle Tax Cloud

Uploaded by

Copyright:

Available Formats

Oracle Tax Cloud – Workshop

Terence Fracozo – LACLS

Copyright © 2018 Oracle and/or its affiliates. All rights reserved.

• It is the tax engine to support tax requirements

• What is the business of the company?

• Foundation tax configuration refers to a set of tax setup Tax Regime

components that will to satisfy the tax simple Tax

• Example for ICMS “Family”

Tax Regime Tax Regime Tax Regime

• Simple Tax Rule (foundation)

• Simple Tax Rule

• Simple Tax Rule

• Complex Tax Rule

• Complex Tax Rule

• How to define ICMS Tax?

• Default rates for each jurisdiction

• Tax Applicability Rules

• Tax Place of Supply Rules

Place od Supply Order-to-Cash Procure-to-Pay

– Define Origin and Destination for ICMS Tax

• Tax Place of Supply Rules

• Tax Place of Supply Rules

– Sales Operation: Customer Address

• Tax Status Rules

• Tax Status Rules

– Sales Operation: Customer Address

• Tax Rate Rules

• Tax Rate Rules

• Tax Rate Rules

– Sales Operation: Customer Address

• You can set up withholding tax using

More information about Tax Cloud

Copyright © 2018 Oracle and/or its affiliates. All rights reserved.

You might also like