Municipality of Rio de Janeiro: changes in ISS tax withholding

The accrual month is now the month following the service provision, regardless of when the payment was made to providers

Since May 23, the Nota Carioca system has started to consider the month following that in which the services were rendered as the accrual period for ISS (Service Tax) withholding, even if the respective payment has not yet been made to the service provider. This was established by Law No. 7,000/2021, which made several changes to the Tax Code of the Municipality of Rio de Janeiro.

Thus, from the above date onwards, the Nota Carioca system complies with the unique treatment given to tax withholdings, which affects the criteria for tax recognition and consequently their due date.

As such, companies must pay special attention to invoices issued by third parties and related documents, including provisional receipts (which are issued before their corresponding invoices) and invoices from abroad, bearing in mind that their respective reports and the resulting tax collection shall take into account the month of service provision.

Specialized tax support

The tax department at Domingues e Pinho Contadores simplifies the Company’s routine, providing support in maintaining tax compliance and acting strategically in order to overcome challenges and seize opportunities. Count on this support: dpc@dpc.com.br.