Defining Withholding Tax Formulas 


If you have not used any withholding tax formulas for classic withholding tax, you do not need to take any action at this stage.

If you have selected the field form in the withholding tax code, you have to define the same formula for extended withholding tax as the one you defined for classic withholding tax.


  1. In the Implementation Guide for Financial Accounting, choose Financial Accounting Global Settings à Withholding Tax à Extended Withholding Tax à Calculation à Withholding Tax Codes à Define Formulas for Calculating Withholding Tax or Define Calculation Types.
  2. Define the required formula to correspond with the formula in classic withholding tax.

Note that when you maintain formulas in extended withholding tax, you have to enter header data for formula maintenance and for the formulas themselves. For each classic withholding tax formula for a country and withholding tax code, you have to make a corresponding entry in extended withholding tax. For each country and withholding tax code, you have to make header entries for each currency and withholding tax country defined in classic withholding tax, with the corresponding extended withholding tax type and code. In the formulas themselves, you enter amounts corresponding to the amounts in the classic withholding tax formulas.