Defining Withholding Tax Types and Withholding Tax Codes
Use
Define all types and codes that you require for the countries whose company codes you wish to change over to extended withholding tax.
Note that when you convert the withholding tax data, you must assign a withholding tax type and a withholding tax code for extended withholding tax to each withholding tax code for classic withholding tax (see
Assigning Withholding Tax Codes and Withholding Tax Types). This enables you to assign several different withholding tax codes for classic withholding tax to one withholding tax type, as long as the following settings for the withholding tax codes for classic withholding tax are the same:SAP recommends assigning withholding tax codes for classic withholding tax where the above settings are the same to the same withholding tax type for extended withholding tax.
If, in the future, you want to post several kinds of withholding tax in one document, you need several withholding tax types.
If you require functions that were previously not provided by classic withholding tax, but that are covered by extended withholding tax (for example, accumulation), after the withholding tax changeover, you must define a new withholding tax type for each function required.
Procedure
Defining withholding tax types (required)
Screen area |
Select... |
If... |
Calculation/Base amount |
Net amount |
Net base for tax contributions is selected in the corresponding classic withholding tax code |
Gross amount |
Net base for tax contributions is not selected in the corresponding classic withholding tax code | |
Calculation/Rounding rules |
W/tax comm. round |
|
Calculation/Cash discount |
C/disc. pre W/tax |
|
Calculation |
Post w/tax amount |
The flag Posting on payment is selected in the corresponding classic withholding tax code |
Accumulation type |
No accumulation |
|
Control data |
W/tax base manual |
|
Definition minimum/maximum amounts |
|
|
Definition minimum/maximum amounts |
|
|
Central Invoice |
No centr. invoice |
|
Minimum check |
Minimum check at item level |
|
or Minimum base amount check |
No check on min. base amnt at doc. level |
Do not select any other fields in the withholding tax type.
Defining withholding tax codes (required)
Screen area |
Field |
Must contain... |
General data |
Off. w/tax key |
The value of the Withholding tax code field from the corresponding classic withholding tax code. |
Base amount |
Percentage subject to tax |
The value of the same field from the corresponding classic withholding tax code. |
Posting |
Post. indic. |
The value 1 |
Calculation |
With/tax rate |
The value of the same field from the corresponding classic withholding tax code. |
W. tax. form. |
Select this field if the same field is selected in the corresponding classic withholding tax code. | |
Reporting information |
Region |
The value of the same field from the corresponding classic withholding tax code. |
Prov. tax code |
The value of the same field from the corresponding classic withholding tax code. | |
Income type |
The value of the same field from the corresponding classic withholding tax code. |
If, in classic withholding tax, you have made an entry in the field Reduced rate in the withholding tax code, you must define this information in the vendor master record in extended withholding tax.
Make the required Customizing settings after the withholding tax changeover.
For more information about the system settings required for withholding tax exemption, see Carrying Out Postprocessing for the Withholding Tax Data Conversion
.
If, after the changeover, you wish to post withholding tax with reunification tax, note that reunification tax is not explicitly defined in the extended withholding tax function, but can be reflected by a separate withholding tax type.
Make the required Customizing settings after the withholding tax changeover.
For more information about the system settings required for withholding tax with reunification tax, see Carrying Out Postprocessing of the Withholding Tax Data Conversion
.