In Customizing for Sales and Distribution (SD), choose Basic Functions ® Pricing ® Pricing Control ® Define Condition Types. Create a new condition type for each withholding tax type as follows:

In Customizing for Financial Accounting (FI), choose Financial Accounting Global Settings ® Withholding Tax ® Extended Withholding Tax ® Calculation ® Withholding Tax Type ® Assign Condition Type to Withholding Tax Type. Assign each condition type that you have created to the appropriate withholding tax type.