Law 7,713/88 - Art. 9, Item 2 
Reduced IR Base - Provision of Passenger Transportation Services

In order to meet the item 2 of article 9 of Law 7,713/88, the following procedures are required:

1. Create payments of revenue and deduction that make up the taxpayer's IR base regarding provision of passenger transportation services.

Example:

667 - Freight - Passenger Transportation

2. Do not use the same payment codes in entries of income for services of Cargo and Goods Transportation and Passenger Transportation.
3. After creating payments with their levies (IR, INSS, etc.), they must be entered in Monthly Transaction for the freelancer that transports passengers. These payments must be entered in CTRANSPAP and/or CTRANSPAD Mnemonics to make the system consider them in a different way and generate reduced IR base, which are exclusive to companies whose taxpayer has income from provision of passenger transportation services:
• CTRANSPAP - Revenue Payment - Freelancer IR - Passenger Transportation;
• CTRANSPAD – Deduction Payment - Freelancer IR - Passenger Transportation.
4. Find these mnemonics. In the Content field, indicate which payments will make up IR base with reduction of 60%. If more than one code is used, they must be separated by a symbol or character.

Example:

667/669/771

661#669#77

5. Thus, during calculation, the system may identify the entries that must generate reduced IR base, according to the item 2 of Article 9 of Law no. 7,713/88.

 

Important:

a. The same payment code of IR Base (ID 015 - Income Tax Base) is generated.
b. Through CTRANSPAP and CTRANSPAD Mnemonics, payments concerning provision of passenger transportation and cargo and goods transportation can be entered onto the same registration code.
c. If two registration codes are used for the same taxpayer with the same SEFIP category, equal to 15, (SEFIP Categ. field), calculation of multiple relationships is used and payments are apportioned, according to instructions displayed in the topic Multiple-Relationship Employees.
d. For different registration codes of the same taxpayer and with different SEFIP category, apportionment is not made because different types are involved.

For Reduced IR Base - Provision of Cargo and Goods Transportation Services

1. By adding the CALC. IRRF AUT formula, calculation of Income Tax base already considers the reduction of 40%, not requiring CTRANSPAD and CTRANSPAP mnemonics.

 

Important:

Create a Deduction payment with the calculation identifier 437 to save the value to be used as SEST/SENAT INSS Deduction.