Withholding Tax (SAP Library

Withholding Tax

Use

The Extended Withholding Tax solution comes ready configured with all the settings you need to track and remit withholding taxes for:

Fourth category income tax (renta de cuarta categoría)

This is a tax on income earned by the self-employed.

Solidarity tax (contribución extraordinaria de solidaridad, formerly known as fondo nacional de vivienda (Fonavi))

This is a tax intended to raise funds for Peru's infrastructure.

Activities

Customizing

For generic information about customizing Extended Withholding Tax, see Settings for Extended Withholding Tax: Overview.

Country Version Peru comes with sample Customizing setting for both of the aforementioned taxes. The settings include withholding tax types and codes.

Day-to-Day Activities

In Peru, you calculate withholding tax as soon as you enter a vendor invoice.

Reporting

Country Version Peru comes with its own withholding tax report.

See also:

Extended Withholding Tax (Release 4.0)