Withholding Tax Type (SAP Library

Withholding Tax Type

Definition

See withholding tax type. For generic information about withholding tax types, see Defining Withholding Tax Types.

Use

In Thailand, you withhold tax when you make a payment, and not when you enter an invoice. However, there is one exception. When you make a cash journal entry, you may be required to withhold tax when you enter the invoice. For this reason, you use withholding tax types for calculating taxes at both times.

Customizing

Customize the withholding tax types in Customizing for Financial Accounting (FI), by choosing Financial Accounting Global Settings ® Withholding Tax ® Extended Withholding Tax ® Calculation ® Withholding Tax Type ® Define Withholding Tax Type for Invoice Posting and … ® Define Withholding Tax Type for Payment Posting.

Country Version Thailand comes with the following withholding tax types:

Withholding tax type	Description
01	At Invoice, No Certificate Numbering
02	At Invoice, No Certificate Numbering, One Cycle Gross Up
11	At Payment, No Certificate Numbering
12	At Payment, No Certificate Numbering, One Cycle Gross Up
R1	Accounts Receivable, at Payment, No Certificate Numbering

There are separate withholding tax types for calculating tax when you enter an invoice or make a payment; and there are separate types that are only used in the one cycle gross-up procedure. There is one additional type for calculating tax on customer invoices.

All of the withholding tax types are customized as follows:

Tax is withheld on net amounts.

Tax is rounded according to commercial rounding rules.

Withholding tax is not accumulated.

When you post a payment or invoice, you can overwrite the tax base and tax amounts proposed by the system.

Certificate numbers are not assigned at this level, which means you have to number the withholding tax certificates using the Generic Withholding Tax Reporting program.

The system checks the minimum withholding tax base amounts and withholding tax amounts at withholding tax code level.

The withholding tax types for taxes at the time of payment also have the following Customizing settings:

The system deducts any cash discounts before calculating tax.

When you make a payment, the system checks the entire payment amount to make sure that it is above the minimum amount (see Minimum Tax Base).