Withholding tax in SAP: who withholds, from whom, on what base and how to prove that the amount withheld, paid and declared is the same
Does this transaction have INSS, IRRF, PIS, Cofins, CSLL or ISS withholding, and in what amount? The answer changes with who pays, the type of service, the provider's tax regime and the city. Here you get the official rule with the date of each reading, the path of the withholding to the declaration and three tools that run in your browser.
Who withholds and how much is set by the tax authority and the city, and how your case is classified is your company's decision. DFSpro's work is in SAP: designing, configuring and proving how the withholding is born on the invoice, leaves with the payment and reaches the declaration.
Start with the question of your role
Each role asks something different about withholding. Pick yours.
01Tax
Who withholds, from whom, on what base and with which code.
See the section for this role02Accounts payable
How the amount withheld leaves the payment and becomes a tax payment.
See the section for this role03Accounts receivable
What your customer withholds from you and how it comes back as a credit.
See the section for this role04IT and SAP
Which rules and common mistakes break withholding in the system.
See the section for this role05Controllership
What proof shows that withheld, paid and declared add up.
See the section for this roleWithholding is born in the law, becomes a number on the invoice and only adds up in SAP if the master data and the rule are right
In withholding tax, the payer sets aside part of the amount as a tax or contribution owed by the service provider and pays that part to the government. Each tax has its own rule: INSS comes from hiring labor, IRRF and the PIS, Cofins and CSLL contributions depend on the type of service and on who pays, and ISS depends on the city's law. In SAP, the number only adds up across invoice, payment, payment slip and declaration if the determination by service and the provider's tax regime are right in the master data.
What the rule sets
Who withholds, from whom, on what base and at what percentage, in the laws and instructions of the Federal Revenue, with the reading date.
What the city and the contract set
The ISS withheld and the classification of the service: each city's law governs, and the contract describes what was bought.
What DFSpro proves
That SAP determines the right withholding by partner and service, and that withheld, paid and declared add up.
The base of tax calculation in SAP and the determination of each tax are in tax calculation in the Brazil localization. The full rule text lives in tax legislation for SAP, and here only the minimum of each rule appears, with the link.
Five withholdings can appear on the same invoice, and each one has its own authority
This table gives the overview. The detail by rule, with condition, exception, code, source and reading date, is in the filterable table just below.
| Withholding | Who withholds and from whom | Base and rate | Where the rule is |
|---|---|---|---|
| INSS | A company that contracts labor assignment or a works contract withholds from the contractor | 11% of the gross invoice value, with an extra amount for special activity | Law 8.212, art. 31 |
| IRRF | A legal-entity payer withholds from the provider, by type of service | 1% or 1.5% depending on the service | RIR, arts. 714 to 719 |
| CSLL, PIS and Cofins | A legal-entity payer withholds from a private-law legal entity providing listed services | 4.65% combined, with a value threshold exemption | Law 10.833, arts. 30 to 32 |
| Federal paying body | A federal body or entity withholds income tax (IR) and the three contributions in a single withholding | Percentage from Annex I, by nature of the goods or service | IN RFB 1.234/2012 |
| ISS | The service buyer, when the city law or the complementary law assigns it | City rate, between 2% and 5% | LC 116, arts. 6 to 8-A |
Who is left out
A payer or provider under Simples Nacional, payment to an individual and several exemptions appear in each rule. How Simples is read changes from tax to tax.
An advance, not a cost
The amount withheld is an advance of the tax owed by whoever suffered it. On the billing side, it must come back as a credit.
Where the rule text lives
Law, decree and Federal Revenue instruction each have their page in tax legislation for SAP. ISS by city has its own in NFS-e by city.
Who decides
The classification of the service, the payer and the provider is your company's tax decision, with your accountant and your legal team.
Does this transaction have withholding?
Answer about who pays, what was contracted and the provider's tax regime. The result changes with each answer, and each item opens the rule's row in the table.
This tool needs JavaScript. Without it, the withholding table just below lists all the rules with condition, source and date.
Guidance, not a decision. The list covers the cases mapped. The decision to classify is your company's. Nothing you tick leaves your browser.
What to check
Pick who pays to see the list.
The 21 withholding rules, filterable by tax and by type of service
Filter by tax, by type of service or search by word or code. Each row shows the source and the date it was read.
Tax
Type of service or payer
Showing all 21 rules.
| Withholding | Who withholds and from whom | Base and rate | Code | Conditions and limits | Source and date |
|---|---|---|---|---|---|
| INSSINSS on labor assignment and works contracts | The contracting company withholds from the contracted company. | 11% of the gross value of the invoice or bill. | Paid on a payment slip with the contractor's CNPJ. In SAP and in the tax books, reported in event R-2010 of the EFD-Reinf. | Applies to the services listed in articles 111 and 112 of the IN (cleaning, surveillance, civil construction, data entry, assembly, pantry, hotel services, maintenance with a team on site, among others) when contracted through labor assignment or a works contract. | Law 8.212, art. 31 (consolidated text on Planalto, read on 16/10/2026) and IN RFB 2.110/2022, arts. 110 to 112 (text of the DOU of 19/10/2022, read on 19/10/2026). |
| INSSINSS: extra amount for special-condition activity | The same contracting company, in the same withholding. | Adds 4%, 3% or 2% on the value of the services of those insured workers, which takes the withholding to 15%, 14% or 13%. | Same payment slip. The contractor issues a specific invoice or itemizes the value of those services. | When the insured workers' activity gives the right to special retirement after 15, 20 or 25 years of work. | IN RFB 2.110/2022, art. 131, referring to Law 10.666/2003, art. 6 (read on 19/10/2026). |
| INSSINSS: what comes out of the calculation base | The contracting company calculates, the contractor proves. | Materials and equipment supplied by the contractor, except manual ones, stay out of the base if they are itemized in the contract and on the invoice and are proven. With no value in the contract, the base has minimums by type of service in art. 117. | No code of its own: it changes the amount the 11% applies to. | The value of the material cannot exceed its purchase or rental cost. The contractor keeps the invoices and the contract. | IN RFB 2.110/2022, arts. 116 and 117 (read on 19/10/2026). The minimum percentages by service were not transcribed here: check the article. |
| INSSINSS: when it is not withheld and when it is waived | There is no withholding in the cases of art. 114 and there is a waiver in the cases of art. 115. | Art. 114: self-employed worker supplied by a union or Ogmo, full works contract, exempt charitable entity, individual contributor, freight transport, works contract on the contractor's premises. Art. 115: 11% below the minimum payment, contractor with no employees where a partner provides the service and billing is low, or a regulated professional service provided personally by the partners. | No code. The waiver requires a signed statement from the contractor's legal representative, or a fact recorded on the invoice. | Fitting the case into the exception is checked case by case. The reading on Simples Nacional taxpayers differs between the sources consulted. | IN RFB 2.110/2022, arts. 114 and 115 (read on 19/10/2026). |
| INSSINSS: payment deadline | The contracting company pays on behalf of the contractor. | By the 20th of the month after the invoice is issued, or the previous business day if banks are closed. | Payment slip identified with the contractor's CNPJ. | The wording of the deadline comes from Law 11.933/2009. Confirm whether a later act changed the deadline. | Law 8.212, art. 31, main text (consolidated text on Planalto, read on 16/10/2026). |
| IRRFIRRF on professional services provided by a legal entity | The legal entity that pays or credits withholds from the legal entity providing the service. | 1.5% on the amount paid or credited. Art. 714 lists the services: legal work, auditing, accounting, consulting, advisory and technical consulting, programming, planning, teaching and training, engineering (except construction), among others. | Revenue code 1708 (IRRF, remuneration for services provided by a legal entity), according to the ECF layout read on 15/10/2026. | The tax withheld is an advance of what the beneficiary owes. The list in § 1 of art. 714 applies, and technical assistance to third parties tied to industry or commerce has an exception in the consulting item. | Decree 9.580/2018 (RIR), arts. 714 and 717 (Planalto, read on 19/10/2026). |
| IRRFIRRF on cleaning, upkeep, security, surveillance and labor rental | The legal entity that pays withholds from the legal entity providing the service. | 1% on the amount paid or credited. | Same revenue code 1708 in the ECF layout table, to be checked against the table in force. | Advance of the tax owed by the beneficiary (art. 717). | Decree 9.580/2018 (RIR), arts. 716 and 717 (Planalto, read on 19/10/2026). |
| IRRFIRRF on commissions, brokerage, representation and advertising | The legal entity that pays withholds from the beneficiary legal entity. | 1.5%. For advertising and publicity, amounts paid or passed on to radio, television, newspapers and magazines stay out of the base, with joint liability for proving the service. | Revenue code to be determined by the type of income: the code table was not transcribed here. | Advance of the tax owed by the legal entity (art. 718, § 2). | Decree 9.580/2018 (RIR), art. 718 (Planalto, read on 19/10/2026). |
| IRRFIRRF on payments to work cooperatives and professional associations | The legal entity that pays withholds from the cooperative or association. | 1.5% on personal services provided by members or made available. | Revenue code not transcribed here. | The cooperative offsets the amount against the tax withheld when paying its members, and can ask for a refund if it proves it could not offset. | Decree 9.580/2018 (RIR), art. 719 (Planalto, read on 19/10/2026). |
| CSLL, PIS and CofinsCSLL, Cofins and PIS withheld by a private legal entity | The legal entity that pays withholds from the private-law legal entity providing the service. Art. 30 also covers associations, simple companies and cooperatives, private foundations and condominiums as payers. | 4.65% of the amount to be paid, the sum of 1% CSLL, 3% Cofins and 0.65% PIS. The rates also apply to a provider under the non-cumulative regime. | Revenue code 5952 (withholding of CSLL, Cofins and PIS on payment from a legal entity to a private-law legal entity), in the DCTFWeb manual and ECF layout tables read on 15/10/2026. | Services in art. 30: cleaning, upkeep, maintenance, security, surveillance, cash-in-transit, labor rental, credit and marketing advisory, credit management, selection and risk, management of accounts payable and receivable, and professional services. The list of professionals was not transcribed: check the rule. | Law 10.833/2003, arts. 30 and 31 (consolidated text on Planalto, read on 16/10/2026). |
| CSLL, PIS and CofinsCSLL, Cofins and PIS: exemption below a minimum value | The payer does not withhold when the withholding is very small. | Withholding of BRL 10.00 or less is waived, except on the electronic DARF made through Siafi. | No code: the withholding only arises above the minimum. | The consolidated text shows the old limit of BRL 5,000.00 (Law 10.925/2004) as replaced wording: § 3 now shows BRL 10.00 and § 4 appears as revoked, both by Law 13.137/2015. The Income Tax Regulation cites the same BRL 10.00 value in its reference to art. 31, § 3. This reading comes from cached plain text, without the visual strikethrough marking: check the text in force on Planalto. | Law 10.833/2003, art. 31, §§ 3 and 4 (consolidated text on Planalto, read on 16/10/2026) and Decree 9.580/2018, art. 721, § 3 (read on 19/10/2026). |
| CSLL, PIS and CofinsCSLL, Cofins and PIS: when the law rules out withholding | No withholding: payer under Simples. No withholding either on payment to a Simples taxpayer or, under the wording given by Law 10.865/2004, to a foreign cash-in-transit company. The plain text still lists Itaipu Binacional, and it is worth confirming whether that item remains in force. | Cooperatives are outside CSLL withholding. In international cash-in-transit by a Brazilian company and in shipyard services in the cases of the sole paragraph of art. 32, only CSLL is withheld. | No code: the case takes the tax off the invoice. | Payment to a beneficiary exempt from one or more of the contributions withholds only what the exemption does not cover (art. 31, § 2). The plain text of art. 32 mixes old and new wording, and the reading above follows the wording given by Law 10.865/2004: check the text in force. | Law 10.833/2003, arts. 30 (§ 2), 31 (§ 2) and 32 (consolidated text on Planalto, read on 16/10/2026). |
| CSLL, PIS and CofinsCSLL, Cofins and PIS: state or municipal payer | State and municipal bodies only withhold if there is an agreement with the Federal Revenue. | The rates of art. 31 apply when the agreement exists. | No code on this map. | Art. 33 covers an agreement between the Union and the states, the Federal District and the municipalities. Confirm whether your client's body has an agreement. | Law 10.833/2003, art. 33 (consolidated text on Planalto, read on 16/10/2026). |
| CSLL, PIS and CofinsAmounts withheld are an advance | Whoever suffered the withholding carries it to the income tax and contributions it owes. | The amount withheld is an advance of whatever the beneficiary owes. | No code. It matters for the credit on the billing side. | In the consolidated text, it applies to the withholdings of arts. 30, 33 and 34. | Law 10.833/2003, art. 36 (consolidated text on Planalto, read on 16/10/2026). |
| IRRFFederal paying body: income tax, CSLL, Cofins and PIS in one withholding | Bodies of direct federal administration, agencies, federal foundations, public companies, mixed-capital companies and other Union entities with Treasury funds and a Siafi registration withhold from the legal entity supplying goods or services. | The percentage in column 06 of Annex I applies, which adds the contribution rates and the income tax rate. This withholding replaces the other income tax withholdings on the same payment (art. 2, § 1). The provider states on the invoice the amount of income tax and contributions to withhold. | Annex I codes by nature of the goods or service (see the next row). | Applies to any form of payment, including advance payment. In a disallowance with no new invoice, the base is the original invoice value. With interest and a late fine, the base includes the additions. | IN RFB 1.234/2012, arts. 2 and 3 (copy of 18/03/2019 from the CGU repository, read on 19/10/2026). The version in force on the Federal Revenue portal was not opened. |
| IRRFFederal paying body: Annex I percentages and codes | The same bodies, according to the nature of the goods or service contracted. | Other services (cleaning, surveillance, labor rental, intermediation, factoring): 9.45% under code 6190, with income tax at 4.80%. Goods, services using materials, energy and food: 5.85% under code 6147, with income tax at 1.2%. Passenger transport: 7.05% under code 6175. Services of professional associations and cooperatives: 4.65% under code 8863. Banks and insurance: 7.05% under code 6188. | 6190, 6147, 6175, 8863 and 6188, according to Annex I. | The table was read in a copy from a public body that cites the amendment by IN RFB 2.145/2023. Check the table in force on the Federal Revenue portal. | Annex I of IN RFB 1.234/2012, copy from the São Paulo State accounting portal (read on 19/10/2026). |
| ISSISS withheld: what the complementary law allows | The city, by law, can assign liability for the tax to the service buyer. The complementary law already names as liable the buyer or intermediary legal entity, even if immune or exempt, for services in sub-items 3.05, 7.02, 7.04, 7.05, 7.09, 7.10, 7.12, 7.16, 7.17, 7.19, 11.02, 17.05 and 17.10, and the buyer of a service coming from abroad. | Base: the price of the service (art. 7). Rate: the one in the city law, between the minimum of 2% (art. 8-A) and the maximum of 5% (art. 8). | Payment slip and city code. Each city's rule is in the city's law. | The liable party owes the whole tax, whether or not it withheld (art. 6, § 1). The list of sub-items follows the consolidated text read: check the text in force, since Complementary Law 218/2025 changed other points of the same law. | Complementary Law 116/2003, arts. 6 to 8-A (consolidated text on Planalto, read on 15/10/2026). |
| ISSISS withheld: your city's rule | Who withholds, from whom and in which case is set by the city's law, and the one that applies is that of the place where the tax is due (art. 3). | Rate, specific base, list of services with withholding and deadline change by city. | City payment code. On the electronic service invoice, the ISS withheld field follows the city's layout or the national standard. | The page on NFS-e by city covers the layout and the differences between cities. Here we link it to the withholding process. | Complementary Law 116/2003, arts. 3 and 6 (consolidated text on Planalto, read on 15/10/2026). |
| Declaration and paymentDCTFWeb: where IRRF and the CSLL, PIS and Cofins withholdings arrive | The withholding legal entity declares, centrally through the head office. | Monthly. General deadline: last business day of the following month. The manual lists, among the taxes declared, the IRPJ withholding, IRRF and the CSLL, PIS and Cofins withholdings. | The debt is born from the tax books and generates the payment slip. | IN RFB 2.237, of 04/12/2024, is cited in the manual as the DCTFWeb rule. The MIT is the module for direct inclusion of taxes. Confirm whether any withholding goes in directly through the MIT. | DCTFWeb manual of January 2025 (Federal Revenue portal, read on 15/10/2026). |
| Declaration and paymentEFD-Reinf: social security withholding and beneficiary withholdings | The buyer reports the INSS withheld on services bought in R-2010, and the provider reports the INSS it suffered in R-2020. | Events R-4010 and R-4020 report payments to individual and legal-entity beneficiaries, with the withholdings. R-4099 closes the series. | Revenue code 5952 appears in the EFD-Reinf contributions table with monthly frequency. | Series R-2000 closes in R-2099. The manual read is 2.1.2.1 (August 2023); confirm whether a more recent version exists. | EFD-Reinf manual 2.1.2.1, Sped portal, read on 15/10/2026. |
| Declaration and paymentDIRF: discontinued from calendar year 2025 onward | The paying source stops filing the declaration and reports in the events that replace it. | Events S-1210 and S-2501 of eSocial and those they reference, plus R-4010 and R-4020 of the EFD-Reinf. To check, the Federal Revenue offers the consolidated IRRF statement. | No code: the reporting channel changes. | The official page cites IN RFB 1.990/2020 as the one that set the obligation. The act that ended it, with number and date, was not opened in full text in this reading. | Federal Revenue Dirf support page (shows a date of 20/07/2026, read on 19/10/2026). |
No rule matches this filter. Go back to the full list with the clear button.
Each row cites the rule and the reading date. Percentages and codes were read in the texts indicated, and whatever came from a copy or summary is marked. The reading of classification and the thesis are your company's, and the table does not replace the rule in force.
Four points on the path: invoice, payment, tax payment and declaration
The same amount passes through four places, and reconciliation means confirming it is the same in all of them.
- 01
On the invoice
The provider shows the amount to withhold on the invoice or bill. For INSS, the specific invoice or bill, or the itemization of the value of services under special conditions, affects the base. For a federal body, the provider states the income tax and contributions to withhold (IN 1.234, art. 2, § 6).
What must add up: The amount shown and the amount calculated by the buyer are the same number.
- 02
At payment
The payer reduces the amount paid to the supplier by the part withheld and now owes the tax payment to the public treasury. SAP's documentation describes the same movement for withholding tax in general.
What must add up: The net amount paid plus the withholding add up to the invoice value.
- 03
At tax payment
The amount withheld goes to the payment slip under each tax's code and deadline. INSS has its own deadline in the text of the law. ISS follows the city.
What must add up: The slip paid matches, by tax and by period, the total withheld.
- 04
In the declaration
The INSS withheld and the beneficiary withholdings go to the EFD-Reinf, and the debts reach the DCTFWeb. The eSocial events cover payments for work done by individuals. The DIRF no longer exists from calendar year 2025 onward.
What must add up: What the Reinf and the DCTFWeb show is what the ledger reconciliation points to.
The DCTFWeb receives the withholding debts that come from the tax books, and the MIT is the module for direct inclusion of taxes. The EFD-Reinf carries the INSS withheld and the beneficiary withholdings. The eSocial carries payments for work done by individuals. The DIRF stopped being filed from calendar year 2025 onward. The matching rows of the table have the source and date of each one. For the flow of each obligation, see EFD-Reinf and eSocial.
Six points in SAP decide whether the withholding comes out right
At concept level, with SAP's public documentation read and dated where possible. The real design depends on the version, the tax solution installed and the setup of your environment, and it is proven in the system.
Withholding at supplier payment
SAP's documentation describes withholding tax as tax collected at the start of the payment flow: the payer reduces the amount by the percentage withheld and then pays the authorities, and the provider can, in some cases, pay on its own. Source: SAP Help, Withholding Tax page, read on 19/10/2026.
Classic and extended
The same documentation separates classic withholding from extended, the latter from release 4.0. For each company code, one of the two is chosen; SAP recommends extended and says it brings together the functions of classic. Converting requires handling the withholding data of all affected company codes. Extended being mandatory in Brazil and activation being irreversible appear only in a search summary; confirm with SAP.
Withholding type and code
In concept, the withholding type separates the tax and the posting moment (at invoice or at payment), and the code carries the rate and base. This description comes from search summaries of the pages Defining Withholding Tax Types and Defining Withholding Tax Codes, read on 19/10/2026 without opening the body: the exact design is left to reading in your system.
Determination by partner and by service
In practice, withholding only applies if it is stored in the SAP standard, and the revenue code usually needs its own rule by type of service, because the supplier master data alone does not tell a professional service from cleaning. What to prove is the determination by combination of partner and service.
Withholding at receipt
The comparison table in the documentation lists withholding on payment received as a feature. Which of the two versions, classic or extended, has this feature must be confirmed with SAP. On the billing side, what matters is recording the withholding the customer made, so the amount comes back as an advance (Law 10.833, art. 36).
What the tax document carries
For services, the INSS and ISS withheld travel on the service invoice, and the income tax and contributions, when the payer is a federal body, must be stated by the provider. SAP must bring this amount into the invoice posting and compare it with what its own withholding calculation produced.
- Is SAP standard withholding already active in your company codes, or does it run in a parallel tool?
- Is each supplier's type of service in the master data, or only inside the order and the invoice?
- Is the withholding posted at invoice or at payment, and why was each tax designed that way?
- Who checks the amount withheld against the amount shown on the provider's invoice?
- How is a withholding adjustment for a prior month posted, and in which period?
- What process suspends withholding by administrative or court decision, and who tells the system?
The setup of types and codes and the base of partner data are in tax setup and tax master data. The service invoice is in service invoice and NFTS.
Ten mistakes that repeat, with the likely cause and what to check
The list combines what the rule read asks for with the pattern of causes seen in DFSpro's records. The causes are our hypothesis, and the frequency of each was not measured.
| What goes wrong | Likely cause | What to check |
|---|---|---|
| Withholding calculated on the wrong base | Gross base used where the rule excludes itemized material, or the reverse, with an invoice that has no itemization. | Compare calculation base, contract and itemization on the invoice, tax by tax. |
| Service with no type defined | The same supplier provides services of different kinds and the master data has only one type. | Look for suppliers with more than one type of service and test the rule by order. |
| Wrong or empty revenue code | The determination of the code used to come from a finance data field that stops working in new scenarios. | List the codes used by type of service and check them against the official table in force. |
| Simples Nacional provider withheld | Provider tax regime flag out of date in the master data. | Cross-check the list of Simples suppliers with the list of withholdings for the period. |
| Minimum exemption value set up wrong | The old BRL 5,000 rule stayed configured, or the minimum was applied to the invoice and not to the withholding. | Compare the configured value with the text of the law in force (BRL 10.00 in the consolidated text read) and test a small withholding. |
| INSS withheld on a service outside the list | Every contracted service became labor assignment in the master data. | Review the type of service against articles 111 and 112 and the exclusions of art. 114. |
| Month's withholding declared in another month | Adjustment posted in the month of the correction instead of the invoice's period. | Compare the period of the invoice, of the payment and of the event in the EFD-Reinf. |
| SAP amount different from the one declared | The withholding was not stored in the standard tables and the tax books look it up elsewhere. | Run the reconciliation between the withholding report and the declaration after transmission. |
| Withholding already paid that must come out of the declaration | Adjustment made in a way that moves the assessed balance, when only the tax books should change. | Use the adjustment that changes only the declared information and prove the balance did not change. |
| ISS withheld by a city with no rule | A new city enters the operation and nobody records the local law. | Keep a list of cities with the withholding rule, the source and the reading date. |
Eight test scenarios and a final reconciliation, before declaration
Each scenario runs in test, and what is kept is the invoice, the payment, the slip and the declaration row.
- 01
Professional service from a legal entity
Pay a consulting invoice from a provider not under Simples and of a high value.
Evidence kept: IRRF of 1.5% and a 4.65% withholding with the right codes, net amount paid equal to the invoice minus the withholdings.
- 02
Cleaning or surveillance with labor assignment
Pay an invoice for a service listed in articles 111 and 112, with itemized material.
Evidence kept: INSS of 11% on the base without the material, IRRF of 1%, and event R-2010 with the amount.
- 03
Minimum-value withholding
Pay an invoice whose CSLL, Cofins and PIS withholding comes to BRL 10.00 or less, and another above it.
Evidence kept: No withholding on the first and withholding with the right code on the second.
- 04
Simples Nacional provider
Pay an invoice from a Simples provider.
Evidence kept: No CSLL, Cofins and PIS withholding and a recorded reading on IRRF and INSS.
- 05
Federal paying body
Post a receivable invoice to a federal body, for a service and for goods.
Evidence kept: Annex I percentage and code consistent with the nature, and the advance recorded.
- 06
ISS withheld in a city with a withholding law
Pay a service invoice for a sub-item with withholding, in a city different from yours.
Evidence kept: ISS withheld at the city's rate and the right slip, source and date kept.
- 07
Prior-month adjustment
Correct a withholding in a closed period.
Evidence kept: Event in the right period, assessed balance untouched when the tax was already paid.
- 08
Final reconciliation
Compare the SAP withholding report, the ledger, the slips paid and the month's declaration.
Evidence kept: Each difference by tax with a recorded cause, or opened as an open item with an owner and a deadline.
Compare, by tax and by period, the total withheld on invoices, the total deducted at payments, the total of the slips and what the tax books and the DCTFWeb show. Whatever difference remains becomes an open item with an owner and a deadline. This comparison is our own proof, not a requirement of the rule. For the broader reconciliation between tax and accounting, see tax and accounting reconciliation, and for the test suite, tax tests.
Withholding proof checklist, with guidance for the gaps
Tick only what already works and has proof kept. The score and the suggestions recalculate with each tick, saving nothing: when you reload, the list starts empty.
Without JavaScript the counter does not work, but the items below still serve as a roadmap.
Status
0 of 12 items ready
What to do first
A conversation aid, not an audit report. The list does not attest compliance and does not replace a diagnostic. Your team is the one that says what is already ready.
Who approves, what to keep versioned and when to repeat the test
Who approves
Tax decides the classification of each service. Accounts payable approves the deduction at payment. Controllership approves the reconciliation. SAP IT answers for the configuration.
What to version
The determination rule by type of service, the list of cities with ISS withheld, the table of codes in use and the reconciliation report of each close.
When to retest
At every change in a rule read in the table, with every new city, with every new type of service contracted and with every change in the tax regime of a relevant supplier.
What evidence to keep
The invoice, the payment, the slip, the declaration row and the reconciliation signed by whoever approves, with the open items and their owners.
The consolidated text of Law 10.833, read on 16/10/2026, includes in art. 31, § 1, a reference to Complementary Law 214/2025 with a note on when it takes effect.
From diagnosis to reconciliation, in five steps
Withholdings sit on the system side, where DFSpro, a specialist in tax in SAP and in GUEPARDO Tax, designs, configures and proves. The tax decision stays with your company.
- 01
Diagnosis by tax
We map, by tax, what your company withholds today, from whom and under which rule, and where each piece of data lives in SAP.
- 02
Service and partner map
We link each type of service contracted to the tax it can create and to the partner data that decides the regime.
- 03
Setup and determination
We design and configure types, codes and determination rules according to the client's decision.
- 04
Proof by scenario
We run your operation's scenarios in test, from the professional service to city withholding, and keep the evidence.
- 05
Reconciliation and governance
We reconcile withheld, paid and declared and leave in writing who approves and when to retest.
Who defines what, and who decides
The rule for each withholding comes from the law, the decree, the Federal Revenue instruction and the city, and it is summarized here with the date it was read. Saying whether the service, the payer and the provider fit each rule is up to your company, and never to us. The role of DFSpro, a consultancy specialized in tax in SAP and in GUEPARDO Tax, is in the behavior of the system: it designs, configures and proves the path of the withholding.
Who published each piece of information, and when
Planalto and legislation
- Law 8.212/1991, art. 31 (11% withholding on labor assignment)Consolidated text, read on 16/10/2026
- Law 10.833/2003, arts. 30 to 36 (CSLL, Cofins and PIS withheld)Consolidated text, read on 16/10/2026
- Decree 9.580/2018, Income Tax Regulation, arts. 714 to 719Read on 19/10/2026
- Complementary Law 116/2003, arts. 3 to 8-A (ISS)Consolidated text, read on 15/10/2026
Federal Revenue and Sped
- IN RFB 2.110/2022, arts. 110 to 117 and 131 (social security withholding)Text of the DOU of 19/10/2022, read in a copy hosted by the State of São Paulo on 19/10/2026
- IN RFB 1.234/2012 (payments by federal bodies)Multi-version copy of 18/03/2019, read on 19/10/2026
- DCTFWeb manual, January 2025Read on 15/10/2026
- EFD-Reinf guidance manual, edition 2.1.2.1Read on 15/10/2026
- Dirf support page (discontinuation and replacement)Read on 19/10/2026
The act that discontinued the DIRF, in full text. The text in force of IN RFB 1.234 on the Federal Revenue portal and the current version of IN RFB 2.110. The validity of codes 1708 and 5952 in the official table in force. The income tax rule for a state or municipal payer. The effect of Simples Nacional on IRRF and INSS. Whether any withholding goes in directly through the MIT. The body of the SAP pages on types, codes and extended withholding in Brazil. The effect of Complementary Law 214/2025 on withholding. The coverage of withholdings in each tax solution, including GUEPARDO Tax.
Frequently asked questions about withholding tax in SAP
01Who is required to withhold INSS on a service invoice?+
A company that contracts a service provided through labor assignment or a works contract withholds 11% of the gross value of the invoice or bill (Law 8.212, art. 31, read on 16/10/2026). The list of services, the exclusions and the waivers are in IN RFB 2.110/2022, arts. 111 to 115. Whether your service falls under this is a classification your company must decide.
02What is the income tax withholding on a consulting service provided by a legal entity?+
Art. 714 of the RIR (Decree 9.580/2018) provides for 1.5% on professional services provided from one legal entity to another, with a list that includes consulting, advisory and technical consulting, and programming. The minimum-value waiver mentioned is the one for CSLL, Cofins and PIS withholding (BRL 10.00 in the consolidated text read). Whether your case fits the list is the client's classification.
03What percentage do CSLL, Cofins and PIS withheld add up to?+
4.65% of the amount to be paid, the sum of 1%, 3% and 0.65% (Law 10.833, art. 31). It applies to payments from one legal entity to a private-law legal entity for services in art. 30 and has a minimum-value waiver and legal exceptions.
04Does withholding apply to a Simples Nacional provider?+
For CSLL, Cofins and PIS, the law rules out withholding on payment to a Simples taxpayer (art. 32, III) and waives it for a payer under Simples (art. 30, § 2). For IRRF and INSS, the sources consulted differ on Simples for INSS. The thesis is the client's.
05Is ISS withheld the same in all cities?+
No. The complementary law allows the city to assign liability to the service buyer and already lists cases, but who withholds, from whom and how is set by each city's law. The rate is between 2% and 5%. The page on NFS-e by city covers layout differences.
06What is the payment code for the withholding?+
Each tax has its own. 5952 appears for CSLL, Cofins and PIS withheld between private-law legal entities, and 1708 for IRRF on services from a legal entity in the tables read on 15/10/2026. The validity of each code must be checked in the official table in force. INSS uses a payment slip with the contractor's CNPJ, and ISS uses the city's slip.
07Where does withholding appear in the declaration?+
The INSS withheld goes to the EFD-Reinf in events R-2010 and R-2020, payments with beneficiary withholding go to events R-4010 and R-4020, and the debts reach the DCTFWeb, which lists IRRF and the CSLL, PIS and Cofins withholdings. The eSocial covers payments for work done by individuals.
08Does the DIRF still exist?+
Not from calendar year 2025 onward. The Federal Revenue's Dirf support page says it was fully replaced by events S-1210 and S-2501 of eSocial and R-4010 and R-4020 of the EFD-Reinf (page read on 19/10/2026). The act that ended it, with number and date, was not opened in full text.
09Does SAP calculate withholding by itself?+
It depends on the setup. SAP standard withholding only applies if it is active and stored in the standard tables, with withholding type and code, and determination by type of service usually needs a rule. What DFSpro does is design, configure and prove this behavior in your system.
10Withholding at payment or at invoice: which applies?+
SAP's documentation describes withholding types by posting moment. Which moment each tax should have in your case is the client's tax decision, and the design in SAP comes after it.
11How much does it cost to implement or fix withholdings in SAP?+
There is no official number or public price. The effort depends on how many taxes and cities are involved, on the quality of the supplier master data and on how many scenarios need proof. The conversation starts with a diagnosis of those fronts.
12How long does it take to get withholdings in order?+
There is no official term, and promising a number without seeing your master data would be an estimate. The time depends on the state of the determination of type of service, the number of cities and the volume of pending adjustments.
13Does the tax reform change withholding?+
The consolidated text of Law 10.833 read on 16/10/2026 includes a reference to Complementary Law 214/2025 in art. 31, § 1, with a note on when it takes effect.
14Does GUEPARDO Tax handle withholdings?+
A product fact only goes in with a public source from NTT DATA. What DFSpro checks before connecting the EFD-Reinf is whether SAP standard withholding works and is stored, and that is the question to the client.
15Do the tools on this page decide for me?+
No. They are guidance and run in your browser, sending nothing to a server. They point out what to check, and the tax decision is your company's.
Tell us how withholding is born today on your invoice and where the amount stops adding up
The conversation covers your withheld taxes, your types of service and what your declaration shows today. Tell us how SAP determines withholding and where the difference shows up.
Also read: ISS assessment, tax assessment, GUEPARDO governance and ancillary obligations.