Withholding Tax Key 

Definition

A system object that you use to categorize withholding tax items according to withholding tax keys as defined by the tax administration.

Use

In Colombia, you use these codes to denote the keys used by DIAN, the Directorate of National Taxes and Customs, on income tax returns.

Customizing

Country Version Colombia comes with all of the keys used by DIAN.

You maintain them in Customizing for Financial Accounting (FI), by choosing Financial Accounting Global Settings ® Withholding Tax ® Extended Withholding Tax ® Basic Settings ® Define Withholding Tax Keys.

Assign a withholding tax key to each of your withholding tax codes.

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 a withholding tax key, 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 withholding tax keys that the withholding tax items are classified with.