Withholding Tax Type 

Definition

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

Use

Customizing

You define 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.

You define a different set of withholding tax types for each municipality, since each can levy its own withholding taxes.

Country Version Colombia comes with the following sample withholding tax types:

Withholding tax type	Description
01	Income tax
02	Income tax (nonresidents)
03	Stamp tax
04	Capital gains tax
05	Remittance tax
06	Industry and commerce tax
07	Value-added tax
AT	Self-withholding income tax
S1	Income tax withheld by customer
S2	Value-added tax withheld by customer
S3	Industry and commerce tax withheld by customer

Separate withholding tax types are provided for the various forms of withholding taxes in Colombia. Withholding tax types AT, S1, S2, and S3 are provided for use in accounts receivable.