SAP Library 6/11/2013

Intercompany-Loan Tax Calculation

PUBLIC | CUSTOMER | INTERNAL | CONFIDENTIAL | STRICTLY CONFIDENTIAL

Document Version:

Intercompany-Loan Tax Calculation 1

SAP Library 6/11/2013

Copyright
© Copyright 2013 SAP AG. All rights reserved.

SAP Library document classification: PUBLIC

No part of this publication may be reproduced or transmitted in any form or for any purpose
without the express permission of SAP AG. The information contained herein may be changed
without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software
components of other software vendors. National product specifications may vary.

These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for
informational purposes only, without representation or warranty of any kind, and SAP Group
shall not be liable for errors or omissions with respect to the materials. The only warranties for
SAP Group products and services are those that are set forth in the express warranty statements
accompanying such products and services, if any. Nothing herein should be construed as
constituting an additional warranty.

SAP and other SAP products and services mentioned herein as well as their respective logos are
trademarks or registered trademarks of SAP AG in Germany and other countries.

Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for

additional trademark information and notices.

Intercompany-Loan Tax Calculation 2

SAP Library 6/11/2013

Icons in Body Text

Icon Meaning
Caution
Example
Note
Recommendation
Syntax
Additional icons are used in SAP Library documentation to help you identify different types of
information at a glance. For more information, see Help on Help General Information
Classes and Information Classes for Business Information Warehouse on the first page of any
version of SAP Library.

Typographic Conventions
Type Style Description
Example text Words or characters quoted from the screen. These include field names, screen
titles, pushbuttons labels, menu names, menu paths, and menu options.
Cross-references to other documentation.
Example text Emphasized words or phrases in body text, graphic titles, and table titles.
EXAMPLE TEXT Technical names of system objects. These include report names, program
names, transaction codes, table names, and key concepts of a programming
language when they are surrounded by body text, for example, SELECT and
INCLUDE.
Example text Output on the screen. This includes file and directory names and their paths,
messages, names of variables and parameters, source text, and names of
installation, upgrade and database tools.
Example text Exact user entry. These are words or characters that you enter in the system
exactly as they appear in the documentation.
<Example text> Variable user entry. Angle brackets indicate that you replace these words and
characters with appropriate entries to make entries in the system.
EXAMPLE TEXT Keys on the keyboard, for example, F2 or ENTER.

Intercompany-Loan Tax Calculation 3

SAP Library 6/11/2013

Intercompany-Loan Tax Calculation

You use this report to calculate the withholding tax (in Brazil, referred to as IRRF) and the
financial operation tax [External] (in Brazil, referred to as IOF) amounts for your intercompany
loan transactions. The system generates the flow types for the calculated tax amounts into
Money Market contract that you can post to Financial Accounting (FI) using Post Flows
(TBB1).

You run the report at the end of each month or after the expiration of the contract.

Prerequisites
You have made the settings as described in Customizing for Intercompany-Loan Tax
Calculation (New) [External].

Features
Selection

In the General Selections group box, enter the company code, the product type, and the
transaction number(s).

In the Calculation Control group box, enter the key date and the posting date, and choose the
tax that you want to calculate with the report. You can choose any of the following taxes:

Daily financial operation tax (daily IOF)

Using calculation method E (With Principal Amount: Beginning of Contract IOF)

At the beginning of a fixed-term intercompany loans contract, the report calculates the
daily functional operation tax (daily IOF) for the entire period. The daily IOF
calculation is limited to a maximum of 365 days even if the validity period of the
contract is longer than that. Currently the percentage of the daily IOF is 0,0041%.
Using calculation method A (With Var. Int: Daily IOF (Princ. + Int.) with ActW/252) and
D (Daily IOF (Principal) with Act/365)
The system uses the calculation method you specified in Customizing to calculate the
base amount for the IOF calculation. In this case, the system calculates the IOF
(currently 0.0041%) from the daily balance (that is, the sum of the principal amount
and the interest) on a daily basis
Additional financial operation tax (additional IOF)
When there is an increase in the capital amount in a given month, the report
calculates the financial operation tax for the increase. This tax is called additional IOF
and currently the percentage of the additional IOF is 0,38%.
Withholding tax (IRRF)

Output

The report calculates the tax amounts based on your settings on the selection screen.

Activities
To access the report, on the SAP Easy Access screen, choose Accounting Financial
Supply Chain Management Treasury and Risk Management Transaction Manager

Intercompany-Loan Tax Calculation 4

SAP Library 6/11/2013

Country Specifics Brazil Intercompany-Loan Tax Calculation (transaction code:

J1BICLTAXN).

Customizing for Intercompany-Loan Tax

Calculation

To be able to calculate the withholding tax (in Brazil, referred to as IRRF) and the financial
operation tax [External] (IOF) amounts for the intercompany loans, make the following
settings in Customizing:

In Customizing for Financial Supply Chain Management (FSCM) under Treasury and Risk
Management Transaction Manager Money Market Transaction Management :

Flow Types Define Flow Types

Flow Types Assign Flow Types to Transaction Type
Update Types Define Update Types and Assign Usages
Update Types Assign Flow Types to Update Types

In Customizing for Financial Supply Chain Management (FSCM) under Treasury and Risk
Management Transaction Manager Country-Specific Functions Brazil Intercompany-
Loan Tax Calculation :

Define Flow Types for Tax Types of Intercompany Loans

Define Tax Rates for Tax Calculation
Define Tax Calculation Method and Categories for IOF Calculation

For more information about the Customizing settings, see the Customizing documentation in
the system.

Intercompany-Loan Tax Calculation 5