Withholding Tax Type
Definition
A category of withholding tax. SAP delivers withholding tax types for
expanded withholding tax and final tax, according to Philippine requirements.Use
When you create a company code using the template for the Philippines, the system sets up sample withholding tax types as follows:
Withholding Tax Types for Invoice Posting
Tax type |
Description |
CI |
Expanded withholding tax (customer invoice) |
EI |
Expanded withholding tax (vendor invoice) |
FI |
Final tax (invoice) |
Withholding Tax Types for Payment Posting
Tax type |
Description |
CP |
Expanded withholding tax (customer payment) |
EP |
Expanded withholding tax (vendor payment) |
EV |
Expanded VAT on sale to government entity |
EX |
Payees exempt from withholding tax |
FP |
Final tax (payment) |
Depending on your company's method for posting withholding tax – either on an accrual basis (at invoice posting) or on a cash basis (at payment posting) – you can maintain withholding tax types in Customizing for Financial Accounting, under Financial Accounting Global Settings
® Withholding Tax ® Extended Withholding Tax ® Calculation ® Withholding Tax Type ®