Defining Minimum and Maximum Amounts

Use

If the legal requirements permit minimum, maximum, or exempt amounts for the withholding tax base amount or the withholding tax amount, you can define these here.

Procedure

You make the settings for the minimum and maximum amounts in the Implementation Guide for Financial Accounting: Financial Accounting Global Settings ® Withholding Tax ® Extended Withholding Tax ® Calculation ® Minimum and Maximum Amounts .

All calculations are made in the respective local currency. This means that you have to maintain the minimum and maximum for the withholding tax amount, the minimum base amount, the withholding tax exempt base amount, and the withholding tax scales in the local currency of the company code.

You can define the minimum and maximum amounts at one of two levels, depending on the setting on the corresponding withholding tax type for base amounts or withholding tax amounts .

• Define Min/Max Amounts for Withholding Tax Types
• Define Min/Max Amounts for Withholding Tax Codes

Make the following settings :

• Withholding tax minimum amount

If the withholding tax amount calculated is lower than the minimum amount you specify here, then the system calculates the withholding tax amount as being zero.

• Withholding tax maximum amount

If the withholding tax amount calculated is higher than the withholding tax maximum amount you specify here, then the system uses this maximum amount in the withholding tax calculation.

• Minimum base amount

If the withholding tax base amount is lower than the minimum base amount you specify here, then the system calculates the withholding tax amount as being zero. If the withholding tax base amount exceeds the minimum base amount specified here, the system uses the whole base amount to calculate the withholding tax (compare Withholding tax base exempt amount).

• Withholding tax base exempt amount (only possible at withholding tax code level)

If the withholding tax base amount is lower than the withholding tax base exempt amount, then the system calculates the withholding tax amount as being zero.

If the withholding tax base amount exceeds the withholding tax base exempt amount specified here, then the system uses the base amount as reduced by the exempt amount for the withholding tax calculation.

For accumulation, the total accumulated base amount is checked against the minimum base amount or the withholding tax base exempt amount. In contrast, the withholding tax amount as reduced by the values already accumulated is checked against the withholding tax minimum amount or the withholding tax maximum amount.