Setting Up Subsidiaries for Brazil in NetSuite 2026.1

Starting in NetSuite 2026.1, new features enhance the subsidiary setup process for businesses in Brazil. The Brazil Localization SuiteApp introduces specific fields in subsidiary records allowing users to input essential Brazil-specific tax information necessary for compliance and operational efficiency.

What's New in Subsidiary Setup for Brazil

When creating or editing subsidiary records for Brazil, it is crucial to ensure the appropriate fields for tax registration are filled out. Here's how to effectively set up a subsidiary for Brazil:

1. Navigate to Subsidiary Setup:
   Go to Setup > Company > Classifications > Subsidiaries.
   To edit an existing subsidiary, click Edit next to the relevant subsidiary.

2. Enter Tax Registrations:

   • Federal Tax Registration: Enter the subsidiary's federal tax registration number.
     • For companies, use the CNPJ format: 00000000000000 or 00.000.000/0000-00.
     • For individuals, use the CPF format: 00000000000 or 000.000.000-00.
   • State Tax Registration: If applicable, enter the state tax number.
   • Municipal Tax Registration: Enter the municipal number if required.
   • SUFRAMA Registration: For those operating in the Manaus Free Trade Zone, include their SUFRAMA registration number using formats like 000000000 or 00.0000.00-0.
   • Tax Substitute Registration: For subsidiaries acting as tax substitutes outside their home state, include this registration.

3. Subsidiary Logo: (optional)

   • Assign a logo to be printed on all forms by the subsidiary. Tip: Images should be a maximum of 72 pixels in height and 259 pixels in width.

4. Default E-Document Category:

   • For automatic e-document handling, specify the default e-document category in transactions.

5. Economic Activities:

   • Use the Primary CNAE Code field to specify the main economic activity, integrating the economic activity codes regulated by Brazil’s Instituto Brasileiro de Geografia e Estatística (IBGE).
   • You can also add Secondary CNAE Codes for other activities.

6. Transaction Accounts:

   • Set accounts for posting transaction amounts. Refer to Setting Transaction Accounts for Subsidiaries in Brazil for guidance.

7. SuiteTax Latam Engine:

   • If applicable, input the necessary tax information to utilize the SuiteTax Latam Engine for accurate tax calculations.

8. Address Setup:

   • Enter both the regular address and shipment addresses for the subsidiary to handle logistical needs.Refer to Entering Addresses for Subsidiaries in Brazil.

9. Save Changes:

   • After filling in all relevant fields, click Save.

Who This Affects

• Administrators: Oversee subsidiary record creation and edits.
• Accountants: Ensure accurate tax registrations for compliance.
• Developers: Integrate with localized functionalities within NetSuite.

Key Takeaways

• NetSuite 2026.1 introduces specific fields for Brazil subsidiary setup to ensure tax compliance.
• Properly formatted tax registration numbers are required for companies and individuals.
• Subsidiaries can now include logos on various forms for branding consistency.
• The setup process includes defining economic activities and transaction accounts for accurate bookkeeping.
• Address entries help streamline operations related to inventory and shipping.