Is INSS due at the place of service? Understand tax retention

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When it comes to providing services on a regular basis, it is important to understand clearly how tax contributions work. A very common question is whether INSS is due at the place of provision.

In this article, you will be able to understand the general collection rule applied by the National Institute of Social Security. Follow along!

Which municipality is INSS applicable?
As a rule, INSS is collected at the place where the service is provided when it is provided to a Legal Entity. According to Law No. 8,212/1991 , the contracting company is responsible for withholding INSS.

In this sense, the municipality of incidence must be the same as the one where the contractor is located .

When are you required to withhold INSS on the invoice?
The contractor is obliged to withhold INSS on the invoice when hiring the services of another company through the assignment of labor or contract work, even if it is under the temporary service regime.

What is the INSS tax rate?
In general, the contractor must retain 11% of the value of the invoice or service list of iran cell phone numbers provision contract for the INSS. This amount must be collected by the 15th of the month after the service is performed.

Furthermore, the INSS amount must be reported on the FGTS Collection and Social Security Information Guide (GFIP).

Exceptions to INSS collection by legal entities
Despite the general rules, there are some cases to which exceptions to the INSS contribution rule apply when acting as a legal entity.

Firstly, companies that opt ​​for Simples Nacional must collect 6% of the values ​​of the notes or contracts, and not 11%. Factoring companies follow a rate of 3.5%.

When services are performed by direct or indirect public administration bodies, it is not necessary to withhold tax.