Definition

A system object that allows you to classify the payments that you have made and withheld tax on, ultimately for the purposes of preparing withholding tax certificates and withholding tax returns.

Use

The Revenue Department issues preprinted forms for withholding tax certificates and returns. The forms contains different boxes for different income types. For example, there is one box where you can enter any professional fees that you have paid, and another field for share dividends.

In the SAP System, each withholding tax item must be assigned to an income type. When you come to prepare your forms and certificates, the system checks which income type each withholding tax item is assigned to. Then it looks in the Smart Form that you use to print the certificates or returns. The Smart Form contains code that tells the system which income types belong to which fields.

For more information, see Withholding Tax Certificates .

Customizing

You customize income types in Customizing for Financial Accounting (FI), by choosing  Financial Accounting Global Settings Withholding Tax Extended Withholding Tax Basic Settings Check Income Types .

The table below show which income types are supplied with Country Version Thailand. These are the income types described in the various paragraphs of Section 40 of the Revenue Code (1100–1800 below). Under Section 3 tredecim of the Revenue Code, the Director General of the Revenue Department can also require any company not normally required to withhold tax to do so. Separate income types (3000–3800) are provided for tax withheld under this section (see Special Account Tax Deduction and Remittance Report ). Finally, Section 70 bis (income type 5402) covers the transfer of a company's profits abroad (see Withholding Tax on Transfer of Profits Abroad ).

Assign an income type to each of your withholding tax codes .

Note that if you create income types of your own, you must also add them to the Smart Form code, otherwise the system will not be able to assign them to any of the fields.

Day-to-Day Activities

Whenever you enter a document that includes a withholding tax item, the system automatically assigns the item a withholding tax code, as normal. Since each tax code is also associated with an income type, the withholding tax item is also automatically classified.

Reporting

When you come to prepare withholding tax certificates and returns, the system fills them out according to the income types that the withholding tax items are classified with.