SAP Tax Declaration Framework (TDF)

TDF is SAP`s solution for tax and regulatory hurdles in Brazil.  Its goals, functionality and customer benefits will be outlined in this article.

What is it

In order to be compliant with the complex requirements of the Brazilian tax regulations, SAP has introduced the Tax Declaration Framework (TDF) in 2013. It offers an integrated management solution based on SAP HANA or S4/HANA which saves Brazilian companies or subsidiaries time and money by fulfilling the following tasks:

  • Prepare for auditing
  • (Predictive) analysis of fiscal information
  • Fiscal planning and optimization of tax payments

 

How it works

TDF functions via a Central Tax Repository (CTR) that integrates solutions from SAP and third party providers. What makes the CTR special is that it synchronizes all information (such as accounting documents or invoices) with the ERP backend in real time. Moreover, using these information, it generates all tax documentation required by the Brazilian government. Furthermore, it enables customers and third party providers to develop additional applications based on metadata with standardized semantic, ergo without the original SAP data.

 

Which Reports it generates

  • SPED fiscal file EFD and accounting file ECD
  • eSocial
  • CIAP, EFD Bloco G
  • EFD Bloco K
  • SPED EFD Contribuições
  • SPED for Income Tax (ECF)

 

If SAP does not provide a specific solution, an integration with other fiscal applications is possible which then retrieves the necessary data from the CTR. Thus, the following functions are enabled:

  • Validation and Auditing of data
  • Calculation of tax returns for direct and indirect taxes
  • Generation of mandatory tax documents

 

Which costumer benefits arise

In general, TDF offers the governance, monitoring and traceability of all relevant tax information of a company. Furthermore, it enables adaptations of the accounting processes (e.g. tax returns) within the ERP backend.

Specifically, a company gains the following benefits from using TDF:

  • Consistent tax data in the CTR which are synchronized in real-time with the ERP backend systems
  • Standardized interfaces and database as part of SAP product à automatic maintenance and updates in case of legal changes
  • Significantly reduced time to process period-end closing activities
  • Significantly reduced risk of fiscal non-compliance
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