Use

In Thailand, various methods are used for calculating withholding tax. In most cases, you simply deduct the tax from the amount to be paid. However, you can also use the gross up and one cycle gross up methods. In Thailand, you are required to show on withholding tax returns which of these "paid conditions" you used.

Activities

Customizing

In the SAP System, the paid conditions are controlled by the posting indicator in the withholding tax codes . Set the posting indicator in each withholding tax code as appropriate.

Day-to-Day Activities

When you enter any document that is liable to withholding tax, the system automatically generates the withholding tax item using the appropriate withholding tax code and thus the appropriate paid condition.

Reporting

When you prepare withholding tax returns for domestic companies , the returns show for each document which paid condition was used to calculate the withholding tax. At the foot of the return is a key with the paid conditions:

1 – Deducted at Payment

2 – Grossing Up/Offsetting

3 – One Cycle Grossing Up

4 – Other

The return shows the appropriate number next to each document, showing which paid condition was used in that document. The Smart Form for the return supplied with Country Version Thailand takes care of this function automatically.