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 Taxes in Company Codes of Argentina

 

For meeting the legal requirements for taxation in Argentina, Contract Accounts Receivable and Payable offers two-step tax determination, VAT perception and GI perception, tax exemptions and the adoption of Argentina-specific fields of the the contract account in the FI-CA document.

Contract Accounts Payable and Receivable takes into account minimum amounts per document for the tax types VAT perception and GI perception. If the tax amount does not reach the configured minimum per document, the system does not create tax items. If the tax amount exceeds the configured minimum, the system create tax items accordingly.

The tax determination can be made dependent on the tax location.

Technical Details

Technical Name of Product Feature

FICAX_ARGENTINA_TAXES

Product Feature Is

New

Country Dependency

Valid for Argentina

Software Component Version

FI-CAX 617

Application Component

FI-CAX (Contract Accounts Receivable and Payable)

Available As Of

SAP enhancement package 7 (SP05) for SAP ERP 6.0

Required Business Functions

FICAX_LOC_1

Additional Details

Two-Step Tax Determination

The tax for document items that are posted in Argentina company codes is determined using a two-step procedure:

  1. Preliminary VAT Determination Code

    The system finds a tax determination code according to the transaction-relevant account assignment data defined in Customizing (as for company codes in other countries). In contrast to the normal VAT determination, this code is preliminary. As is the case otherwise, the system determines the code using the following fields:

    • Company Code

    • Division

    • Account Determination ID

    • Main Transaction 2

  2. Final Tax Determination Code

    The system finds the following codes according to the determination of the tax determination codes for Argentina defined in Customizing:

    • Final tax determination code for VAT

    • The determination code for VAT perception and/or GI perception

      This code can contain the VAT perception, the GI perception, or a combination of both. The codes mentioned above are determined using the following fields:

      • Preliminary VAT Code

      • Tax Type

      • Region

      • County

VAT Perception and GI Perception

The system checks each FI-CA document as to whether VAT perception and/or GI perception are due. You define the minimum amounts for VAT perception and GI perception in Customizing. If VAT perception or GI perception is due, the system creates for one FI-CA document from invoicing a second FI-CA document with the VAT perception and/or GI perception. Alternatively, the system creates in the FI-CA document an additional business partner item as well as a general ledger item for posting VAT perception and/or GI perception.

Tax Exemptions

You can enter tax exemptions for a contract account in contract accounts maintenance, which are then taken into account during the tax calculation. The following fields concern tax exemptions:

  • Exempt From

  • Exempt To 

  • Number for Exemption License

  • Exemption Amount Rate

    This can be used to reduce the tax exemption by a percentage rate.

    Example Example

    Receivable = 100, tax rate = 20%, exempt amount rate = 10% => tax rate to be applied 18% (= 20% - 2%)

    End of the example.

Transfer of Argentina-specific fields of the contract account to the FI-CA document

During posting, the system transfers the following fields from the contract account into the FI-CA document:

  • Province

  • County

  • Fiscal Type

The following fields are transferred to the FI-CA document according to the determination of the activity code and distribution type for Argentina defined in Customizing:

  • Activity Code for Gross Income Tax

  • Distribution Type for Employment Tax

Affects on Customizing Settings

Define the preliminary tax determination code in posting area S001 in Customizing for Contract Accounts Payable and Receivable under Start of the navigation path Basic Functions Next navigation step Postings and Documents Next navigation step Document Next navigation step Define Account Assignments for Automatic Postings Next navigation step Automatic G/L Account Determination Next navigation step Define Transaction-Relevant Account Assignment Data for FI-CAX End of the navigation path.

Define the following in Customizing for Contract Accounts Receivable and Payable under Start of the navigation path Basic Functions Next navigation step Special Features of Tax Processing Next navigation step Tax Determination (Argentina) End of the navigation path:

  • The final tax determination code in posting area 2102 (Determination of Tax Determination Code)

  • If you want to post a separate document for VAT or GI perception: a document type for this document in posting area 2101 (Maintain Document Type Specifications for VAT/GI Perception)

  • The derivation of the activity code and the distribution type in posting area 2103 (Assign Activity IDs to Distribution Types)

Define the minimum amounts for VAT preception or GI perception in Customizing for Contract Accounts Receivable and Payable under Start of the navigation path Basic Functions Next navigation step Particular Aspects of Taxation Procedure Next navigation step Define Minimum Amounts for Tax End of the navigation path.