Withholding Tax Code
Definition
For generic information about withholding tax codes, see
Defining Withholding Tax Codes.
Use
Customizing
Define the withholding tax codes in Customizing for Financial Accounting (FI), by choosing Financial Accounting Global Settings
® Withholding Tax ® Extended Withholding Tax ® Calculation ® Withholding Tax Codes ® Define Withholding Tax Codes.Country Version Colombia comes with sample tax codes for each of the sample withholding tax types provided.
For the purposes of printing the withholding tax certificates, assign each withholding tax code to an official withholding tax key, a fiscal regional code, and an income type as appropriate.
Master Data
Assign the appropriate withholding tax codes to your vendor masters and customer masters.
Day-to-Day Activities
When you enter a document that is liable to tax (for example, when you enter a vendor invoice), the system automatically applies the tax type and tax code appropriate to that vendor or customer.