Configuring Tax Registrations

ERP CLOUD
for Brazil

Table of Contents
1. Overview ........................................................................................................................................................... 2
2. Tax Registration and Taxpayer ID Validations ................................................................................................... 2
3. National Register of Legal Entities (CNPJ) ......................................................................................................... 3
Define First-Party CNPJ...................................................................................................................................... 3
Define Third-Party CNPJ .................................................................................................................................... 4
4. Individual Taxpayer Registry (CPF) .................................................................................................................... 5
Define Third-Party CPF ...................................................................................................................................... 5
5. Superintendence of the Manaus Free Zone (SUFRAMA) .................................................................................. 6
Define Third-Party SUFRAMA ............................................................................................................................ 6
6. State Inscription Number (IE) ............................................................................................................................ 7
Define First-Party and Third-Party IE ................................................................................................................. 7
7. Municipal Inscription Number (IM) ................................................................................................................... 9
Define First-Party and Third-Party IM ............................................................................................................... 9
1. Overview

Oracle ERP Cloud provides the infrastructure to capture, maintain, and validate company registration numbers,
such as the National Register of Legal Entities (CNPJ), Individual Taxpayer Registry (CPF), State Inscription
Number (IE), Municipal Inscription Number (IM), and Superintendence of the Manaus Free Zone (SUFRAMA) in
Brazil, for enterprise, suppliers, customers, and other parties. These registration numbers are required by the
tax authorities, and defined as tax registrations and taxpayer IDs. As part of the fiscal document information,
they are displayed in the Manage Fiscal Document Generation page, and extracted for submission to the tax
authorities.

This document describes how to implement and configure the tax registrations and taxpayer IDs for CNPJ, CPF,
IE, IM, and SUFRAMA.

2. Tax Registration and Taxpayer ID Validations

To control and validate CNPJ, CPF, IE, IM, and SUFRAMA, the following tax reporting types are predefined for
Brazil:

• Brazil CNPJ for CNPJ registration

• Brazil CPF for CPF registration
• Brazil SUFRAMA for SUFRAMA registration
• Brazil State Inscription IE for IE registration
• Brazil Municipal Inscription IM for IM registration

Perform the following to change the controls and defaults for tax registration and taxpayer ID validations:

1. Navigate to the Manage Tax Reporting Types task.

2. Search for the tax reporting type.
3. Select the tax reporting type and click Edit.
4. In the Registration Numbers Controls and Defaults region, define the validation level as Warning or
Error as appropriate.
5. Based on the uniqueness check level, define the duplicate validation level as All party types, Customers,
No validation, Same party type, Suppliers, or Third parties.
6. Click Save and Close.

You can maintain the validation configuration at each of the following tax setup levels:

• Tax regime
• Tax
• Tax jurisdiction

Use the available fields on the setup pages to configure defaults for each associated tax or tax jurisdiction. The
values from the tax reporting type appear by default on this record. These values control:

2 | CONFIGURING TAX REGISTRATIONS FOR BRAZIL

 • Registration type to be initiated
• Validation level
• Duplicate validation level

Note: The country-based validation is applicable only if the validation field is null.

For more information on tax registrations, see the Oracle Financials Cloud Implementing Tax guide at
http://docs.oracle.com.

3. National Register of Legal Entities (CNPJ)

CNPJ is an identification number issued to companies in Brazil by the Federal Revenue Bureau. Each company
branch operating in a different address requires a distinct CNPJ number. The CNPJ of the fiscal document issuer
must be disclosed to the tax authorities, and is also required for bank collection and payment processing.

Use the Manage Legal Entity Registrations and Manage Legal Reporting Unit Registrations tasks to define the
CNPJ associated with the first party. Customers, suppliers, and other third parties can use the Manage Tax
Registrations for Third-Party Tax Profiles and Third-Party Site Tax Profiles tasks to define their CNPJ numbers.
This information is validated for uniqueness, format, and check digit requirements.

Define First-Party CNPJ

Add the first-party CNPJ numbers as the legal entity and legal reporting unit registrations after you define the
legal entity and legal reporting unit registration codes for the legal jurisdiction.

To create a legal jurisdiction, perform the following steps:

1. Navigate to the Manage Legal Jurisdictions task.

2. Select the territory as Brazil.
3. Select the CNPJ as the legal entity registration code.
4. Select the CNPJ as the legal reporting unit registration code.
5. Click Save and Close.

You define the legal entity registration when you are creating the legal entity.

To create a legal entity, perform the following steps:

1. Navigate to the Manage Legal Entity task.

2. Accept the default country as Brazil.
3. Accept the default value Identifying Jurisdiction, defined previously as the legal jurisdiction.
4. Search for and select a legal address.
5. Enter the CNPJ of the legal entity.
6. Enter the legal reporting unit registration number as the CNPJ of the legal reporting unit.
7. Click Save and Close.

3 | CONFIGURING TAX REGISTRATIONS FOR BRAZIL

When you create a legal entity, a legal reporting unit with the same name is automatically created. Use the
Manage Legal Reporting Unit task to create more legal reporting units, or modify the settings.

For more information on legal entity registrations and legal reporting unit registrations, see the Oracle Financials
Cloud Implementing Common Features guide at http://docs.oracle.com.

Define Third-Party CNPJ

Define the CNPJ for third parties as taxpayer identifiers of third-party tax profiles and third-party site tax
profiles. Third parties constitute the customers, suppliers, and carriers. The tax reporting type Brazil CNPJ is
predefined for Brazil, and the registration type is Taxpayer ID. The following reporting type uses are enabled in
the application:

• Customer party tax profile

• Customer site party tax profile
• Supplier party tax profile
• Supplier site party tax profile

To enter the CNPJ of a third party, perform the following steps:

1. Navigate to the Manage Tax Registrations task.

2. Search for Third-Party Tax Profiles.
3. In the Taxpayer Identifiers tab, click Create.
4. Search for the party name on the Create Third-Party Taxpayer ID page.
5. Select Brazil CNPJ as the validation type.
6. In the Taxpayer ID field, enter the CNPJ number.
7. Enter the effective start date.
8. Click Save and Close.

To enter the CNPJ of a third-party site, perform the following steps:

1. Navigate to the Manage Tax Registrations task.

2. Search for Third-Party Site Tax Profiles.
3. In the Taxpayer Identifiers tab, click Create.
4. On the Create Third-Party Site Taxpayer ID page, search for the party site number.
5. Select Brazil CNPJ as the validation type.
6. In the Taxpayer ID field, enter the CNPJ number.
7. Enter the effective start date.
8. Click Save and Close.

For more information on tax registrations, see the Oracle Financials Cloud Implementing Tax guide at
http://docs.oracle.com.

4 | CONFIGURING TAX REGISTRATIONS FOR BRAZIL

4. Individual Taxpayer Registry (CPF)

CPF is the registration number for individuals maintained as suppliers, customers, or other third parties involved
in transaction flows. It is not maintained for the legal entity and legal reporting units. The Federal Revenue
Bureau in Brazil assigns CPF to individual taxpayers, and it is a mandatory requirement to perform any legal or
commercial activity.

Use the Manage Tax Registrations for Third-Party Tax Profiles and Third-Party Site Tax Profiles tasks to define
the CPF associated with the third parties. This information is validated for uniqueness, format, and check digit
requirements.

Define Third-Party CPF

Define the CPF for third parties as taxpayer identifiers of third-party tax profiles and third-party site tax profiles.
Third parties constitute the customers, suppliers, and carriers. The tax reporting type Brazil CPF is predefined for
Brazil, and the registration type is Taxpayer ID. The following reporting type uses are enabled in the application:

• Customer party tax profile

• Customer site party tax profile
• Supplier party tax profile
• Supplier site party tax profile

To enter the CPF of a third party, perform the following steps:

1. Navigate to the Manage Tax Registrations task.

2. Search for the Third-Party Tax Profiles.
3. In the Taxpayer Identifiers tab, click Create.
4. Search for the party name on the Create Third-Party Taxpayer ID page.
5. Select Brazil CPF as the validation type.
6. In the Taxpayer ID field, enter the CPF number.
7. Enter the effective start date.
8. Click Save and Close.

To enter the CPF of a third-party site, perform the following steps:

1. Navigate to the Manage Tax Registrations task.

2. Search for Third-Party Site Tax Profiles.
3. In the Taxpayer Identifiers tab, click Create.
4. On the Create Third-Party Site Taxpayer ID page, search for the party site number.
5. Select Brazil CPF as the validation type.
6. In the Taxpayer ID field, enter the CPF number.
7. Enter the effective start date.
8. Click Save and Close.

5 | CONFIGURING TAX REGISTRATIONS FOR BRAZIL

For more information on tax registrations, see the Oracle Financials Cloud Implementing Tax guide at
http://docs.oracle.com.

5. Superintendence of the Manaus Free Zone (SUFRAMA)

SUFRAMA is the Manaus free trade zone agency responsible for managing the incoming and outgoing goods in
the area affected by the fiscal benefits. Companies in this area must register with SUFRAMA to receive a
registration number. This information is required for the fiscal documents related to transactions with applicable
tax benefits. The SUFRAMA registration of the ship-to party must be informed in those fiscal documents, and for
tax reporting.

Use the Manage Tax Registrations of Third-Party Tax Profiles and Third-Party Site Tax Profiles tasks to define the
SUFRAMA associated with third parties. This information is validated for uniqueness, format, and check digit
requirements.

Define Third-Party SUFRAMA

Define the SUFRAMA for third parties as taxpayer identifiers of third-party tax profiles and third-party site tax
profiles. Third parties constitute the customers, suppliers, and carriers. The tax reporting type Brazil SUFRAMA is
predefined for Brazil, and the registration type is Taxpayer ID. The following reporting type uses are enabled in
the application:

• Customer party tax profile

• Customer site party tax profile
• Supplier party tax profile
• Supplier site party tax profile

To enter the SUFRAMA of a third party, perform the following steps:

1. Navigate to the Manage Tax Registrations task.

2. Search for Third-Party Tax Profiles.
3. In the Taxpayer Identifiers tab, click Create.
4. Search for the party name on the Create Third-Party Taxpayer ID page.
5. Select Brazil SUFRAMA as the validation type.
6. In the Taxpayer ID field, enter the SUFRAMA number.
7. Enter the effective start date.
8. Click Save and Close.

To enter the SUFRAMA of a third-party site, perform the following steps:

1. Navigate to the Manage Tax Registrations task.

2. Search for Third-Party Site Tax Profiles.
3. In the Taxpayer Identifiers tab, click Create.
4. On the Create Third-Party Site Taxpayer ID page, search for the party site number.

6 | CONFIGURING TAX REGISTRATIONS FOR BRAZIL

 5. Select Brazil SUFRAMA as the validation type.
6. In the Taxpayer ID field, enter the SUFRAMA number.
7. Enter the effective start date.
8. Click Save and Close.

For more information on tax registrations, see the Oracle Financials Cloud Implementing Tax guide at
http://docs.oracle.com.

6. State Inscription Number (IE)

The State Inscription Number (IE) is a registration assigned by the state fiscal authorities for ICMS tax.
Companies that are required to pay ICMS tax must register to receive an IE registration number. Companies
doing business in more than one state must have a different IE for each state. State Inscription Numbers of the
first party and the third parties are mandatory for tax reporting and fiscal documents.

For first parties, use the Manage Tax Registrations of Legal Reporting Unit Tax Profiles task to define the State
Inscription Number. Customers, suppliers, and other third parties, can use the Manage Tax Registrations of
Third-Party Tax Profiles and Third-Party Site Tax Profiles tasks. This information is validated for uniqueness,
format, and check digit requirements.

Define First-Party and Third-Party IE

Add the first-party state inscription number as the tax registrations of legal reporting unit tax profile. Add the
third-party state inscription number as the tax registrations of third-party tax profile and third-party site tax
profile.

The tax reporting type Brazil State Inscription IE is predefined for Brazil, and the registration type is Tax
registration. The following reporting type uses are enabled in the application:

• Legal reporting unit tax registration

• Customer party tax profile
• Customer site party tax profile
• Supplier party tax profile
• Supplier site party tax profile

Define your tax configuration before adding the party tax profiles tax registrations. Use the Manage Tax Regimes
task to create tax regimes and assign them to the country Brazil. For ICMS tax configuration, use the Manage Tax
Jurisdictions task to create one tax jurisdiction for each state. Use the same tax regime, tax, and tax jurisdiction
when you enter the tax registrations.

Perform the following to enter the IE of a legal reporting unit:

1. Navigate to the Manage Tax Registrations task.

2. Search for Legal Reporting Unit Tax Profiles.

7 | CONFIGURING TAX REGISTRATIONS FOR BRAZIL

 3. In the Tax Registrations tab, click Create.
4. Select the legal reporting unit in the Create Legal Reporting Unit Tax Registration page.
5. Select the tax regime code.
6. Select the tax.
7. Select the tax jurisdiction code associated with the state where the IE was registered.
8. In the Registration Details region, select Others as the tax registration type.
9. Select Brazil State Inscription IE as the validation type.
10. The Validation Level and Duplicate Validation Level controls are retrieved from the tax configuration.
11. In the Registration Number field, enter the IE number.
12. Enter the start date.
13. Click Save and Close.

Perform the following to enter the IE of a third party:

1. Navigate to the Manage Tax Registrations task.

2. Search for Third-Party Tax Profiles.
3. In the Tax Registrations tab, click Create.
4. On the Create Third-Party Tax Registration page, select the party name.
5. Select the tax regime code.
6. Select the tax.
7. Select the tax jurisdiction code associated with the state where the IE was registered.
8. In the Registration Details region, select Others as the tax registration type.
9. Select Brazil State Inscription IE as the validation type.
10. The Validation Level and Duplicate Validation Level controls are retrieved from the tax configuration.
11. In the Registration Number field, enter the IE number.
12. Enter the start date.
13. Click Save and Close.

To enter the IE of a third-party site, perform the following:

1. Navigate to the Manage Tax Registrations task.

2. Search for Third-Party Site Tax Profiles.
3. In the Tax Registrations tab, click Create.
4. On the Create Third-Party Site Tax Registration page, select the party site number.
5. Select the tax regime code.
6. Select the tax.
7. Select the tax jurisdiction code associated with the state where the IE was registered.
8. In the Registration Details region, select Others as the tax registration type.
9. Select Brazil State Inscription IE as the validation type.
10. The Validation Level and Duplicate Validation Level controls are retrieved from the tax configuration.
11. In the Registration Number field, enter the IE number.
12. Enter the start date.
13. Click Save and Close.

8 | CONFIGURING TAX REGISTRATIONS FOR BRAZIL

Note: To define the Tributary Substitute IE associated with the destination state of merchandise when there is
ICMS ST withheld for the destination state:

• Create a first-party state inscription number for the legal reporting unit located in the ship-to state. For
example, if you are shipping from Rio de Janeiro to Minas Gerais, create an IE for the legal reporting unit
located in Minas Gerais state. This information is extracted for submission to tax authorities.

For more information on tax regimes, tax jurisdictions and tax registrations, see the Oracle Financials Cloud
Implementing Tax guide at http://docs.oracle.com.

7. Municipal Inscription Number (IM)

The Municipal Inscription Number (IM) is the taxpayer identification number in the Municipal Tax Register. This
registration is required for companies that provide services, and are required to pay the ISS tax to the city.
Companies doing business in multiple cities must have a different IM for each city. Municipal Inscription
Numbers of the first party and the third parties are mandatory for tax reporting and service fiscal documents.

For first parties, use the Manage Tax Registrations of Legal Reporting Unit Tax Profiles task to define the
Municipal Inscription Number. Customers, suppliers, and other third parties can use the Manage Tax
Registrations of the Third-Party Tax Profiles and Third-Party Site Tax Profiles tasks. This information is validated
for uniqueness.

Define First-Party and Third-Party IM

Add the first-party municipal inscription number as tax registrations of the legal reporting unit tax profile. Add
the third-party municipal inscription number as tax registrations of the third-party tax profile and the third-party
site tax profile.

The tax reporting type Brazil Municipal Inscription IM is predefined for Brazil, and the registration type is tax
registration. The following reporting type uses are enabled in the application:

• Legal reporting unit tax registration

• Customer party tax profile
• Customer site party tax profile
• Supplier party tax profile
• Supplier site party tax profile

Define your tax configuration before adding the party tax profiles tax registrations. Use the Manage Tax Regimes
task to create tax regimes, and assign them to the country Brazil. For ISS tax configuration, use the Manage Tax
Jurisdictions task to create one tax jurisdiction for each city. Use the same tax regime, tax, and tax jurisdiction
when you enter the tax registrations.

9 | CONFIGURING TAX REGISTRATIONS FOR BRAZIL

Perform the following to enter the IM of a legal reporting unit:

1. Navigate to the Manage Tax Registrations task.

2. Search for Legal Reporting Unit Tax Profiles.
3. In the Tax Registrations tab, click Create.
4. Select the legal reporting unit in the Create Legal Reporting Unit Tax Registration page.
5. Select the tax regime code.
6. Select the tax.
7. Select the tax jurisdiction code associated with the city where the IM was registered.
8. In the Registration Details region, select Others as the tax registration type.
9. Select Brazil Municipal Inscription IM as the validation type.
10. The Validation Level and Duplicate Validation Level controls are retrieved from the tax configuration.
11. In the Registration Number field, enter the IM number.
12. Enter the start date.
13. Click Save and Close.

Perform the following to enter the IM of a third party:

1. Navigate to the Manage Tax Registrations task.

2. Search for Third-Party Tax Profiles.
3. In the Tax Registrations tab, click Create.
4. On the Create Third-Party Tax Registration page, select the party name.
5. Select the tax regime code.
6. Select the tax.
7. Select the tax jurisdiction code associated with the state where the IM was registered.
8. In the Registration Details region, select Others as the tax registration type.
9. Select Brazil Municipal Inscription IM as the validation type.
10. The Validation Level and Duplicate Validation Level controls are retrieved from the tax configuration.
11. In the Registration Number field, enter the IM number.
12. Enter the start date.
13. Click Save and Close.

Perform the following to enter the IM of a third-party site:

1. Navigate to the Manage Tax Registrations task.

2. Search for Third-Party Site Tax Profiles.
3. In the Tax Registrations tab, click Create.
4. On the Create Third-Party Site Tax Registration page, select the party site number.
5. Select the tax regime code.
6. Select the tax.
7. Select the tax jurisdiction code associated with the state where the IM was registered.
8. In the Registration Details region, select Others as the tax registration type.
9. Select Brazil Municipal Inscription IM as the validation type.

10 | CONFIGURING TAX REGISTRATIONS FOR BRAZIL

 10. The Validation Level and Duplicate Validation Level controls are retrieved from the tax configuration.
11. In the Registration Number field, enter the IM number.
12. Enter the start date.
13. Click Save and Close.

For more information on tax regimes, tax jurisdictions, and tax registrations, see the Oracle Financials Cloud
Implementing Tax guide at http://docs.oracle.com.

11 | CONFIGURING TAX REGISTRATIONS FOR BRAZIL

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