Normative Instruction SRF no. 480 from December 15, 2004 (FINA050 - SIGAFIN)

Normative Instruction SRF no. 480

According to the   paragraph 6, withholding of amounts smaller than R$ 10.00 (ten reais) is exempted, except when electronic DARF is performed through Siafi.

IR Calculation with differentiated due date

Applied to the withholding codes: 8739, 8767, 6147, 6175, 6190

Concerning the payment period

According to the article 5, withheld values must be paid to the National Treasury through Federal Tax Payment Form (Darf):

I - By direct federal administration agencies, autarchies, and federal foundations that perform withholding, until the third working day of the week subsequent to that one in which payment is made to the legal entity that provides goods or service;

II - By public companies, mixed corporations, and other entities in which the Federal Government has the most voting capital directly or indirectly. Besides, by companies that receive resources from the National Treasury and that must register their budget and financial performance in Siafi in a centralized way through the head office establishment of legal entity, until the last working day of the week subsequent to the fortnight in which payment is made to the legal entity that provides goods or service.

Oil products and hydrated ethyl alcohol for fuel.

Article 18

§ 2nd In payments made to distributors and retailers of gasoline, diesel and liquefied petroleum gas (LPG), as well as aviation kerosene (QAV), except aviation gasoline, or in payments made to retailers of hydrated ethyl alcohol for fuel, income tax and CSLL are withheld by using the code 8739, but PIS/PASEP and Cofins do not require withholding. (Included by IN SRF no. 539 dated April 25, 2005).

Pharmaceutical, cosmetics, toilet and hygiene products

Article 19 In payments made to legal entities that manufacture or import pharmaceutical, cosmetics, toilet or hygiene products, IRPJ, CSLL, PIS/PASEP Contribution and Cofins must be withheld by using the code 6147. (By IN SRF no. 539 dated April 25, 2005).

Sole Paragraph. In payments made to distributors and retailers of pharmaceutical, cosmetics, toilet or hygiene products the art. 1 of Law no. 10,147, dated December 21, 2000 refers to, changed by the Law no. 10,548, dated November 13, 2002, income tax and CSLL are withheld by using the code 8767, but PIS/PASEP contribution and Cofins do not require withholding. (Included by IN SRF no. 539 dated April 25, 2005).

Machines, vehicles, car parts, tires and inner tubes

Article 20 In payments made to legal entities that manufacture or import machines, car parts, tires and inner tubes, vehicles as well as tractors the articles 1, 3 and 5 of Law no. 10,485 dated July 3, 2002 are about, concerning mainly wholesale business compared to industry, present in the art. 17, § 5 of the Provisional Measure no. 2,189-49 from 2001, IRPJ, CSLL, Cofins and PIS/PASEP Contribution must be withheld by using the code 6147. (By IN SRF no. 539 dated April 25, 2005).

§ 1 Withholding must also be made by using the code 6147 in payments regarding the acquisition of machines, car parts, vehicles and tractors not listed in the caput, made to importers, manufacturers, wholesalers, and retailers. (Paid by IN SRF no. 539 dated April 25, 2005).

§ 2 In payments made to wholesalers and retailers concerning products classified in the positions 40.11 (new tires) and 40.13 (inner tubes) of TIPI, income tax and CSLL are withheld and paid by using the code 8767, but PIS/PASEP contribution and Cofins do not require withholding. (Included by IN SRF no. 539 dated April 25, 2005).

Water, soft drinks and beer

Article 21 In payments made to legal entities that manufacture or import water, soft drink and beer, IRPJ, CSLL, Cofins and PIS/PASEP Contribution must be withheld by using the code 6147. (By IN SRF no. 539 dated April 25, 2005).

Sole Paragraph. In payments made to wholesalers and retailers concerning the acquisition of water, soft drinks and non-alcoholic beer, classified in the codes 22.01 and 22.02 of TIPI, income tax and CSLL are withheld and paid by using the code 8767, but PIS/PASEP contribution and Cofins do not require withholding. (Included by IN SRF no. 539 dated April 25, 2005).

Cooperatives and professional association or similar

Article 25

§ 1 If invoicing of entities mentioned in this article involves installment of services provided by third parties not in the cooperative or not associated, contracted or accredited, to meet contracts with agencies and entities present in the art. 1 of this Normative Instruction, income tax and contribution withholding of art. 2 of this Normative Instruction is applied to such installment, in the total percentage provided in the Annex 1 - Withholding Table of this Normative Instruction.

I - 5.85% (five wholes and eighty-five hundredths percent), through the collection code 6147, in case of services provided with use of material; or

II - 9.45% (nine wholes and forty-five hundredths percent), through the collection code 6190, for other services.

Article 26

I - In case of medical association

a) another invoice, concerning services of third parties not in the cooperative (individual or legal entity), which must split the amounts regarding services provided as follows:

1. medical services provided by individuals (doctors, dentists, anesthetists, nurses, etc.) and medical services not considered in hospital services, provided by legal entities, by medical appointment bills, laboratory examinations, x-rays, physical therapy, and similar, with withholding, in the total percentage of 9.45% (nine wholes and forty-five hundredths percent), under the collection code 6190 (other services);

2. hospital services according to the art. 27 of this Normative Instruction, with withholding and payment, in the total percentage of 5.85% (five wholes and eighty-five hundredths percent), under the collection code 6147.

II - In case of medical cooperatives

a) another invoice, concerning services of third parties not in the cooperative (individual or legal entity), which must split the amounts regarding services provided as follows:

1. medical services provided by individuals (doctors, dentists, anesthetists, nurses, etc.) and medical services not considered in hospital services, provided by legal entities, by medical appointment bills, laboratory examinations, x-rays, physical therapy, and similar, with withholding, in the total percentage of 9.45% (nine wholes and forty-five hundredths percent), under the collection code 6190 (other services);

2. hospital services according to the art. 27 of this Normative Instruction, with withholding and payment, in the total percentage of 5.85% (five wholes and eighty-five hundredths percent), under the collection code 6147.

§ 1 If tax documents are issued not according to the provision of items 1 and 2 of this article, income tax and contribution are withheld on the tax document total, in the percentage of 9.45% (nine wholes and forty-five hundredths percent), under the collection code 6190 (other services), of Annex 1 - Withholding Table, of this Normative Instruction.

§ 2 In payments made to medical cooperatives, health insurance and health care plan providers, the withholding to be made is from the other services, in the percentage of:

a)9.45% (nine wholes and forty-five hundredths percent), through the collection code 6190, for health care plans.

b)7.05% (seven wholes and five hundredths), under the code 6188, for health insurance.

§ 3 In case of outsourcing of medical services (labor rental) through work cooperatives or medical association to supply labor in the facilities of service contractor, withholding is made as follows:

I - In case of medical association:

According to the subitem a, item 1 of art. 26 for members;

According to the subitem b, item 1 of art. 26 for non-members;

II - In case of medical cooperatives:

According to the subitem a, item 2 of art. 26 for members;

According to the subitem b, item 2 of art. 26 for non-members;

§ 4 In case of § 3, work cooperatives or medical association must split in two different invoices the amounts regarding personal services provided by members of amounts concerning services provided by non-members of the cooperative.

§ 5 If the provision of § 4 is not considered, income tax and contribution are withheld on the tax document total, in the percentage of 9.45% (nine wholes and forty-five hundredths percent), under the collection code 6190, of Annex 1 - Withholding Table, of this Normative Instruction.

§ 6 In case of payments made to association of doctors that mediate the provision of medical services by doctors or legal entities that perform medical procedures on their behalf in their respective facilities, the following item must be observed:

I - If the member is a legal entity, withholding is made on the total paid to each legal entity that provides services, considering the following percentages:

a) 5.85% (five wholes and eighty-five hundredths percent), through the collection code 6147, in case of hospital services mentioned in the art. 27 of this Normative Instruction; or

b) 9.45% (nine wholes and forty-five hundredths percent), through the collection code 6190, for other services.

II - If the member is an individual, withholding of art. 628 of Income Tax Rules must be made, approved Decree no. 3,000 dated March, 1999 (RIR from 1999), on the total paid to each individual, through application of the progressive rates mentioned in the art. 620 of RIR from 1999.