Settings for Extended Withholding Tax: Overview

In order to be able to use extended withholding tax, you must make various settings in Customizing and the master data of the business partners concerned in each of the company codes.

Activities

  1. Activate extended withholding tax

  2. To be able to use extended withholding tax, you must first activate it.

    For more information, see the Implementation Guide (IMG) for Financial Accounting under Start of the navigation path Financial Accounting Global Settings Next navigation step Company Code Next navigation step Activate Extended Withholding Tax. End of the navigation path

  3. Set up reporting

Make the settings for withholding tax reporting. You do this in two places:

  • Under Start of the navigation path Financial Accounting Next navigation step Financial Accounting Global Settings Next navigation step Withholding Tax Next navigation step Extended Withholding Tax Next navigation step Basic Settings End of the navigation path in the Implementation Guide for Financial Accounting , you define for example, the countries in which withholding tax is reported, the official withholding tax keys, and reasons for exemption.

  • Under Start of the navigation path Financial Accounting Next navigation step General Ledger Accounting Next navigation step Business Transactions Next navigation step Closing Next navigation step Reporting Next navigation step Extended Withholding Tax: Reporting End of the navigation path you make the settings for the forms for reporting the tax.

For more information on reporting withholding tax, see FI - Closing and Reporting .

  1. Define withholding tax types

  2. Define withholding tax codes

  3. Define minimum and maximum amounts

  4. Define accounts for withholding tax

  5. Define liability to tax and deduction authorization (master data)

  6. Configure certificate numbering for withholding tax

  7. If necessary, use the analysis report for extended withholding tax (RFWT1000). You can use the report to:

  • Check your Customizing settings for consistency

  • Get an overview of the withholding tax-relevant settings in Customizing and the master data of your business partner

  • Track the calculation of withholding tax amounts in detail

For more information, see the documentation for program RFWT1000.