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.
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
Set up reporting
Make the settings for withholding tax reporting. You do this in two places:
Under
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
you make the settings for the forms for reporting the tax.For more information on reporting withholding tax, see FI - Closing and Reporting .
Define liability to tax and deduction authorization (master data)
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.