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Procedure documentation Defining Withholding Tax Types and Withholding Tax Codes Locate the document in its SAP Library structure

Use

Define all types and codes that you require for all countries that you want to implement Extended Withholding Tax in.

Procedure

Defining Withholding Tax Types

  1. In the Implementation Guide (IMG) for Financial Accounting (FI), choose Financial Accounting Global Settings ® Withholding Tax ® Extended Withholding Tax ® Calculation ® Withholding Tax Type.
  2. Make the necessary settings for the required withholding tax types in the following activities:
    1. Define Withholding Tax Type for Payment Posting, and if necessary, Define Withholding Tax Type for Invoice Posting
    2. Define Rounding Rule for Withholding Type
    3. Assign Condition Type to Withholding Tax Type

Defining Withholding Tax Codes

  1. In the IMG for FI, choose Financial Accounting Global Settings ® Withholding Tax ® Extended Withholding Tax ® Calculation ® Withholding Tax Codes ® Define Withholding Tax Codes.
  2. If any of the withholding tax codes use formulas to calculate withholding tax, you must also carry out the activity Define Formulas for Calculating Withholding Tax.
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