Calculation Withholding Tax Type Define Withholding Tax Type for Payment

In Indonesia, withholding taxes can be posted at the time of payment. To ensure that the certificate numbering takes place when you post a document, do not make an entry into the No Cert. Numbering field.

 Calculation Withholding Tax Codes Define Withholding Tax Codes

Define the withholding tax codes required for your operations. For each withholding tax code, specify the withholding tax rate and assign the appropriate withholding tax key. (SAP delivers required withholding tax keys as part of the country template.) Assign an income type (see activity below) only to the withholding tax code to which you assign withholding tax key 2306.

 Calculation Withholding Tax Type Define Exchange Rate Type for Withholding Tax Type

Assign the exchange rate type you defined for Indonesian tax purposes to your withholding tax types.

When you post an invoice in foreign currency, you have to report the net/gross income and the tax amount using the exchange rate as issued by the tax office.

 Basic Settings Check Income Types

Define the income types required for your operations. The law in Indonesia specifies the types of income subject to withholding tax, for example, 01 for appraisal services.

 Posting Certificate Numbering for Withholding Tax Assign Numbering Concept to Company Code Country

We recommend that you use standard certificate numbering concept 2 (company code and withholding tax type) or 3 (company code, business place, and withholding tax type). Based on the concept you choose, configure the other activities under Certificate Numbering for Withholding Tax.

Generic Withholding Tax Reporting

Make settings as required in the activities for the Generic Withholding Tax Reporting program.