Withholding Tax Type 
Withholding Tax Type
Definition
A category of withholding tax.
Use
When you create a company code using the template for Colombia, the system creates sample withholding tax types as follows:
Withholding tax type |
Description |
01 |
Income tax |
02 |
Income tax (nonresidents) |
03 |
Stamp tax |
04 |
Capital gains tax |
05 |
Remittance tax |
06 |
Industry and commerce tax |
07 |
Value-added tax |
AT |
Self-withholding income tax |
S1 |
Income tax withheld by customer |
S2 |
Value-added tax withheld by customer |
S3 |
Industry and commerce tax withheld by customer |
In this example, self-withholding tax is calculated and debited to separate accounts.
Integration
You use withholding tax types in conjunction with withholding tax codes. Whereas the withholding tax type controls the essential calculation options for extended withholding tax, the withholding tax code determines, for example, the percentage rate of the withholding tax and any exemptions that apply.