Settings for Extended Withholding Tax: Overview (SAP Library

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.

Activities

Activate extended withholding tax

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.

Set up reporting

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

Under Financial Accounting ® Financial Accounting Global Settings ® Withholding Tax ® Extended Withholding Tax ® Basic Settings in the Implementation Guide for Financial Accounting, you define for example, the countries in which withholding tax is reported, the official withholding tax keys, and reasons for exemption.

Under Financial Accounting ® General Ledger Accounting ® Business Transactions ® Closing ® Reporting ® Extended Withholding Tax: Reporting you make the settings for the forms for reporting the tax.

For more information on reporting withholding tax, see FI - Closing and Reporting.

Define withholding tax types

Define withholding tax codes

Define minimum and maximum amounts

Define accounts for withholding tax

Define liability to tax and deduction authorization (master data)

Configure certificate numbering for withholding tax

If necessary, use the analysis report for extended withholding tax (RFWT1000). You can use the report to:

Check your Customizing settings for consistency

Get an overview of the withholding tax-relevant settings in Customizing and the master data of your business partner
Track the calculation of withholding tax amounts in detail

For more information, see the documentation for program RFWT1000.