What is ISS, what is it for and how to calculate it?

ISS is the acronym for Tax on Services of Any Nature or, simply, Tax on Services. Entrepreneurs need to understand what the ISS is and what its characteristics are. This is because it is a tax levied on the work of several legal entities. Some legal entities are even exempt from this tax. Shall we understand better? What is ISS? ISS is a tax that is levied on all cases of service provision by companies and legal entities, in accordance with Complementary Law 116/2003 . It is collected by Brazilian municipalities and needs to be paid for services ranging from healthcare to construction, hairdressing and carpentry, for example. You can find the complete list of services in the law mentioned above. Self-employed professionals are also subject to paying this tax. Dentists, architects and lawyers who work without ties to any company have the ISS collected according to a specific table. Anyone who is a MEI pays the tax automatically on the monthly contribution slip. This means that it is not necessary to pay any additional amount related to this tax. Micro-enterprises that are under the Simples Nacional regime pay the ISS along with other taxes, through the DAS. In this case, ISS is paid at a single rate, calculated based on the company's gross revenue. When tax is withheld at source, it is the service user who will be responsible for collecting this tax. If it is in the Real Profit or Presumed Profit tax bracket , the company must pay the ISS individually, that is, for each service provided.

However, be aware that, when issuing an Electronic Invoice for your city, the system itself already calculates the current rate and the amount to be paid in the form of ISS is automatically generated. E-book achieving zero default Who is exempt from ISS? Now that you understand who pays ISS, know that there are some professional categories that are exempt. City halls are the ones who choose which companies will be exempt or which will have their base tax rate reduced. This option occurs to encourage or reduce bureaucracy for local entrepreneurs. There are also services Asia Phone Number List that are universally exempt from paying the ISS, which is the case of export services represented in the form of works that are entirely developed abroad, which began abroad, or services provided in Brazil, but which have results outside of here. . If you are unsure whether or not you are exempt from ISS, consult the Treasury Department of the city in which you work. ISS calculation basis You may be wondering how to calculate the ISS. As it is up to each city to define what ISS will be collected, the tax calculation changes, because the rate charged also changes. This percentage is usually between 2% and 5% of the service provided. It also changes depending on your area of activity, whether MEI, self-employed professional or company.

Consult your municipality's Treasury Department to find out the exact amount. Just to illustrate, let's assume you are a designer. For this area of activity, your city defined that 2% of the value of all services provided must be collected. This is the value of the ISS. If you are hired to perform a service in the area and issue an invoice worth R$4,000, observing the definition of your city, you will have to allocate R$80 to the municipality's coffers, which is the value of the ISS. Remembering that this is a mandatory payment and, therefore, delays generate fines. Regarding how to calculate the ISS tax arrears, be aware that the legal entity or company will be subject to a 2% fine, in addition to late payment interest of 1% per month on the amount owed. It will depend on your city hall. Therefore, pay attention to deadlines! ISS and invoice The invoice must be issued by all those who provide services, which means all companies and individuals who pay the tax. To do this, it is necessary to have a digital certificate and an invoice issuing system , which communicates with the city hall.

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