Withholding Tax Code 
Withholding Tax Code
Definition
See
Withholding Tax Code.
Use
Whereas you use withholding tax types to define the different sorts of withholding tax – for example, global complementary tax or additional tax– you use the tax codes to specify exactly what the tax rates are and any exemptions that apply.
When you create a company code using the template for Chile, the system sets up sample withholding tax codes for global complementary tax, additional tax, and value-added tax (VAT) as follows (for more information about the taxes, see
Withholding Tax):
Tax type |
Tax code |
Tax |
Q1 |
B1 |
Global complementary tax (directors) |
Q1 |
B2 |
Global complementary tax (self-employed) |
Q2 |
B1 |
Additional tax |
Q3 |
B1 |
VAT |
Separate tax codes are needed for directors and the self-employed so that you can create separate reports for them (see
Withholding Tax Report).