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.


  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 Financial Accounting Global Settings ® Company Code ® Activate Extended Withholding Tax.

  3. Set up reporting

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

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