ISS and its withholding

ISS refers to the Tax Over Services, which is a local tax (plus Distrito Federal) and is valid only if your company is classified in the National Simple or Presumed Profit.

To define the rate of your company, follow these steps.
  1. Open the company setup menu.
  2. Click ISS Definitions.
  3. Add a new ISS definition or change the information of an existing ISS definition.
  4. Click Save.

Depending on your city and activity, your city can require that ISS always be retained when you provide services to other companies. It means that in your service sales to other companies, the percentage (rate) of ISS must be reduced from the amount you will receive, as it will be your client who will pay this tax to the government.

To define that ISS will always be retained at your town hall, mark the Hold ISS checkbox when you are adding or editing an ISS definition.

If your company is classified in the Presumed Profit Tax Schema, the ISS rate can change depending on which city you are providing services, as the code of your activity and definition of the current city demands or not the withholding of this tax.

Note: With OnBalance, your accountant can easily configure this data for you. Click here for more information.