System Settings for Extended Withholding Tax 

The customer carries out these steps.

Before you start the conversion of the withholding tax data, you must set up extended withholding tax in the Implementation Guide for Financial Accounting. Make the system settings described below.

Do not activate extended withholding tax yet.

If you activate extended withholding tax before converting the withholding tax data, documents could be posted with extended withholding tax. This could result in your system containing documents with both classic withholding tax and extended withholding tax which, in turn, could lead to serious problems during the conversion of documents (see Converting Documents).

You should first consider how you wish to configure and implement extended withholding tax in your organization. You should also consider how you want to reflect the withholding tax codes for classic withholding tax in the withholding tax types and codes for extended withholding tax in your system.

For the purposes of the changeover, the system settings for extended withholding tax should correspond to the settings for classic withholding tax.

Make the following settings:

Additional System Settings

The following system settings are converted automatically (see Converting Customizing) so you do not need to take any action in these areas: