Income Type
Definition
A system object that, in Colombia, you use to classify withholding tax items as to whether they are related to goods or services.
Use
Customizing
Country Version Colombia comes with two income types:
These types are used to distinguish between withholding taxes on goods on the one hand and services on the other. They are used in conjunction with value-added tax (VAT) withholding and industry and commerce tax withholding.
You define the income types in Customizing for Financial Accounting (FI), by choosing Financial Accounting Global Settings
® Withholding Tax ® Extended Withholding Tax ® Basic Settings ® Define Income Types.Assign an income type to the withholding tax codes that you use for VAT and industry and commerce tax.
Day-to-Day Activities
Whenever you enter a document that includes a withholding tax item, the system automatically assigns the item a withholding tax code, as normal. Since each tax code is also associated with an income type, the withholding tax item is also automatically classified.
Periodic Processing
When you come to prepare withholding tax certificates, the system fills them out according to the income types that the withholding tax items are classified with.