March 18-21, 2013New Orleans

#conv13

Considerations when deploying Microsoft Dynamics® AX 2012 R2 in BrazilGilberto Onodera, Senior PM LeadJoel Pereira, Principal Engineering LeadMicrosoft

CSAX43

Session focus

The costs of doing business in

Brazil

The Localization scope

Localizing a new add-on

Key deployment tips

Introduction 27 states 5,561 cities (*) 3 levels of tax authorities Federal, states and cities

Categories Tax, fee and contribution

80+ different taxes, fees and contributions

Collected taxation: 36.27% GDP (2012)**

(*) Source: www.ibge.gov.br(**) Source: http://www.ibpt.com.br/noticia/568/Carga-tributaria-bate-recorde-e-chega-a-36-

27-do-PIB

Legislation changesFrom 1988 to 2011

6.3%

93.7% Tax

Others

10.7%

31.1%

58.2% Federal

State

City4.35M changes (total)

275K changes (tax)Average = 33 /calendar day (tax)

Source: http://www.ibpt.com.br/home/publicacao.view.php?publicacao_id=14136&pagina=0

Tax auditing results (2011 H1)Total fineUS$ 19,016 M

Average fine per companyUS$ 1.98 M

ManufacturingUS$ 5,443 M

ServicesUS$ 3,107 M

Trade & Retail

US$ 2,991 M

Source: http://www.receita.fazenda.gov.br/srf/ResultFiscalizacao.htm

Prepare, pay and report taxes100+ different tax obligations (reports and payment vouchers)

Fiscal books

The costs of doing business in Brazil#1 effort to prepare, pay and report: 2600 h/y

Brazil China Russia India USA

Time to com-ply (h)

2600 398 320 258 187

250

1250

2250

Time to comply (h)

Hou

rs

Source: http://www.pwc.com/gx/en/paying-taxes/pdf/paying-taxes-2011.pdf

Localization scopeIPI PIS

COFINS ISSPIS,

COFINS, CLSS

IRRF INSS

SPED FISCAL

SPED Contributions

DES/DIEF

Reporting Fiscal Books

SPED Accounting

ICMS

GIAs (SP-RJ)DIRF

DCTF

DCTF

ICMS-ST

Tax Assessment and Payment voucher

(Tax calculation)

Procure to payQuote to cash

(Tax obligations)Fiscal books

SINTEGRA

Procure to pay features

Procure

Receive

PayWithholding taxInterest and fine calculationBrazilian check and BorderoElectronic payment

Post fiscal document for receiving scenarios: Inventory items Service Fixed assets with

bookkeeping of deferred ICMS tax amount

Use and consumption Non-taxable vendor Direct import Tax and price

complementary fiscal document

Tax calculation on purchase request, RFQ, purchase order and vendor invoice: Taxation mode Tax credit/debit

management Tax substitution

Quote to cash featuresQuot

eSell

Produce and stoc

k

Ship CashWithholding taxInterest and fine calculationElectronic payment

Post fiscal document for invoicing scenarios: Inventory items Service Fixed assets Third party sales Project End users Tax and price

complementary fiscal document

Customer returns and customer returns with own fiscal document

Tax calculation on transfer orders

Tax calculation on sales quotation, sales order, free text invoice: Taxation mode Tax credit/debit management Tax substitution

Fiscal books betaBeta is available in Connect portalSubscription is required: mail to gonodera@microsoft.comSubmit your feedback through Connect portalBeta contains:• Fiscal books reports• SPED Fiscal (IPI and ICMS)• SPED Contributions• Integration with AX2009

Localization prioritySP RJ RS SC PR Others

states SE

North

Fed

era

lS

tate

Cit

y

IPI, PIS, COFINS, withholding PIS, COFINS, CSLL, INSS, IRRFNF-e, SPED, Fiscal booksICMS, ICMS-ST, SINTEGRA

ISS, NFS-e

North east

Center

west

68%GDP (*)

14% 13% 5%

(*) Source: www.ibge.gov.br

Supported

Partially supported

Retail industry in Brazil

• Brazilian Fiscal Printers• PAF-ECF

• NFC-e• SAT

PAF-ECF lifecycleCertification

State registratio

n

Major release development Minor code

change

PAF-ECF registration by state

Legend

• Registration done

• Registration in progress

• Registration not required

Session focus

The costs of doing business in

Brazil

The Localization scope

Localizing a new add-on

Key deployment tips

Localizing a new add-on – Microsoft Dynamics AX

Microsoft Dynamics AX Business Documents

Customer InvoiceVendor Invoice

Free Text InvoiceProject InvoiceTransfer OrderTax Transfer

Complementary Invoice

Packing Slip

Partner Add-on document

Fiscal Document

Fiscal Books ModulePosting Reporting

Localizing a new add-on - POS

POS

Services

Triggers

FiscalPrinter

Brazilian Printer

Hungarian Printer

Other Printers

Extensibility Framework

Fiscal Printer Customization

CorePartner Add-on

Key deployment tips• Access the localization scope

document.• Identify the tax calculation and tax

obligation specific needs applicable for segment, transactions, state and city.

• Identify the tax gaps.• Acquire knowledge in tax requirements

or consider using a local partner to append add-ons.

Related sessions• CSAX01 Microsoft Dynamics AX 2012

Overview• CSAX46 Microsoft Dynamics AX 2012

R2 Financials Overview• CSAX44 Microsoft Dynamics AX

Localization - Considerations when Deploying in Russia & Eastern Europe

• CSAX45 Microsoft Dynamics AX Localization – Considerations when Deploying in APAC Markets

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© 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Appendix: Fiscal acronym'sCCNPJ  : federal tax registration id for companiesCIAP  : control over installments of ICMS tax credit from fixed assetsCOFINS  : contribution based on gross revenues from

business salesCFOP : fiscal operation codeCSLL : social contribution over net profit

DDARF : the form to be fulfilled for federal tax paymentDCTF : debit & credit assessment for federal taxesDIRF : assessment of federal withholding taxes

GGNRE : the form to be fulfilled for state tax paymentGIA : guide for ICMS tax assessment and collecting

IIPI  : industrialization taxICMS  : tax over transit of goods and serviceICMS-ST : ICMS tax substitutionISS : tax over serviceIRRF : withholding taxes over profitIE : state tax subscription numberIM : city tax subscription numberINSS : social security tax contributionIN-86 : instruction #86 from federal tax authority that rules about how and how long companies shall hold fiscal and accounting digital data for tax and fiscal auditingII  : Importation tax 

NNota fiscal : fiscal document

Appendix: Fiscal acronym'sPPIS  : social contribution

SSPED : public digital bookkeeping systemSPED Contabil : SPED’s account bookkeepingSPED Fiscal : SPED’s fiscal bookkeepingSINTEGRA : information system for goods & service inter-state transaction SEFAZ  : tax authority state officeSUFRAMA  : fiscal authority for economic development of Amazon region