Configure Withholding Tax

Hi gurus,
I have just configured withholding tax for a Company Code whose country is Indonesia.
This company code has been posting manually the withholding tax before. Meaning, they are not using the w/tax functionalities. They have just decided to configure the w/tax for automatic computation.
Is it ok to activate the extended withholding tax or is there any other procedures needed?
Thanks,
Nuke

Hi,
After configuring extented withholding tax, you cannot directly activate it. The documents posted before now will not be available for this reporting.
There are steps for changeover. Please read this:
http://help.sap.com/saphelp_erp60_sp/helpdata/EN/e5/07812d4acd11d182b90000e829fbfe/frameset.htm
Regards,
Ravi
Edited by: Ravishankar Ramamurthy on Jun 12, 2009 4:22 PM

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Extended Withholding Tax Configuration for USA

Hi Friends,
Any one of you upgraded from Classic to Extended Withholding Tax for USA?
Could you give me a head start or if possible send me configuration docs. We are currently in ECC 6.0.
Also how do you configure withholding tax for Foreign Vendors (like Canada or UK)?
Appreciate it!
Ravi.

Hello Ajay/Surendra,
Could you please forward me the Configuration steps to configure extended withholding tax for country code: USA/ Canada to my email: [email protected]
Thank You
Joana

Define Withholding Tax Type for Payment Posting

Hey Guys, I'm configuring Withholding Tax for a company. I know the purpose for defining the withholding tax type for invoice posting, but do understand where is the Withholding tax type for payment posting used? Is it used for advance(down) payment or something else?
Thanks,

Hi ,
In some countries there is requirement that you need to deducted Withholding tax either at time of Invoice or payment which ever is ealier . so if you get Invoice first then you deduct the Withholding tax on Invoice and define the tax type and assign to company . but if you make paymnet first which we called advance or down payment then we configure Withholding tax on payment .
If a vendor is liable for withholding tax on invoice it may be liable for payment as well if you think you may pay some advances .
Please let me know if you need more information

Withholding Tax Type for Payment Posting - Customer Accumulation -

We are using the Withholding Tax Type for Payment Posting for customer with the accumulation per month and checking the minimum/maximum withholding tax base amount to calculate the tax.
When we run the F110 transaction (Automatic Payment) the system creates a BIll of Exchange as Noted items and keep the accounting document created from the SD opened. After the customer pay the bill, the bank send a file informing the payment, then we clearing the accounting document.
But the system updated the WITH_ITEM Table and filled the fields AUGBL(Clearing Document) and AUGDT (Clearing Date) with the number and date of the BIll of Exchange that was created during the F110 running.
I am confused about this situation because according the Withholding Tax Type for Payment Posting, the system only could updated the table WITH_ITEM with an accounting document. Noted items are not an accounting document.
I would like to konw if the system is working properly, or can have something wrong in our configuracion?
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Augusto

Hi ,
In some countries there is requirement that you need to deducted Withholding tax either at time of Invoice or payment which ever is ealier . so if you get Invoice first then you deduct the Withholding tax on Invoice and define the tax type and assign to company . but if you make paymnet first which we called advance or down payment then we configure Withholding tax on payment .
If a vendor is liable for withholding tax on invoice it may be liable for payment as well if you think you may pay some advances .
Please let me know if you need more information

Withhold taxes not withheld - F110 Program

Hi SCN members,
When the users performed the F110 program and generated the txt file to the bank (That is who print the bank slip.), the bank noticed that the gross amount was printed in the bank slip without subtract the taxes.
These documents were generated from billing process VF04.
Apparently, the issue is in the billing documents and not in F110 process because with the user, we have reversed a payment of one document and we have tried to pay it on F110. The result was the same.
All taxes are not been subtract and not only the taxes withheld in F110. The IRRF tax is withheld in billing process and also is not been subtract.
I’ve never seen something like that. Have you seen?
Thanks so much!

Hi ,
have you configured Withholding tax on Payment .
System deduct the withholding tax In f110 when you configure Withholding tax type for payment and assign to you comapny code . and then Mainatin in Vendor/ customer master.
Please check the setting and let us know .

Request for info. on withholding tax

Hi,
what configuration steps i have to follow to configure withholding tax(i.e classic) not extended withholding tax.
I know how to configure extended withholding tax but facing difficult to configure withholding tax.
In the IMG we will be using two tabs one is withholding tax and one is extended withholding tax.Please provide info on withholding tax not extended withholding tax
Please provide steps
Thanks in advance
HAGI

Configuration for Witholding Tax
SPRO>IMG>Financial Accounting>Accuntas Receivable and Accounts Payable>Business Transaction>Incoming invoices/credit meos>Carry out and check settings for withholding taxes.
1) Maintain tax codes: In OBC7 maintain the withholding tax codes and their attributes like percentages and basis like gross or net etc.
2) Maintain the account determination for each and every tax codes through OBYS.
Other optionals:
Withholding tax is only relevant for specific posting transactions in certain countries and even there, only for some groups of vendors. You therefore determine, depending on your company code, business partner, and the business transaction, the cases in which the fields for withholding tax become ready for input .
1) Maintain the country keys (The standard system delivers most of the countries forms to be submitted to the tax authorities)
2) Maintain Formulas OB98 (if needed, Like US and Japan need scaled basis calculation.)
3) The recipient categories
Master Data andTransactions
You need to specify in the vendor master record, a withholding tax code to enable the system to calculate the tax amount, which defaults when you enter a line item if the vendor is subject to withholding tax.
If a vendor is exempt from withholding tax, you must specify this in the master record the details of exemption certificate and the date up to which the exemption is valid. If an exemption exists, the system either posts no withholding tax or the reduced tax rate.
Withholding tax is only relevant for specific posting transactions in certain countries and even there, only for some groups of vendors. You therefore determine, depending on your company code, business partner, and the business transaction, the cases in which the fields for withholding tax become ready for input .

Withholding Tax Certificates Number Range

Hi All,
There are two options in SPRO setting to configure Withholding Tax Certificates:
1) FA->****->WT->EWT->Posting->Certificate Numbering for Withholding Tax.
another option
2) FA->****->WT->EWT->Posting->India->Withholding Tax Certificates for Vendors and Customers:
I had applied both the method but still Certificate Number is not printing while running J1INCERT.
Please help why number is not getting printed.
Regards,
Ankur

Hi All,
When I give the print command system did not throw any message this time and excute the print and assign certificate number as per J1INMIS Report but due to some technical reasons print did not came out of the printer.
Now, when i again reprinting certificate from J1INCERT then system is showing error message " No data selected for printing"
Can anyone tell me how to take reprint of certificates and what would happen to earliar assigned certificate number range.
Further, I have taken the print earliar without TDS Certificate Number but acknowledgement number was getting updated and successfully reprinting from J_1IEWT_ACKN_N Table, but now this is also showing blank.
Please help.
Regards,
Ankur

Vendor is Subject to Withholding Tax Message

I have configured withholding tax in my client and it works well. The issue is with the message.
When I post an invoice using transaction MIRO, the system does not give a message that the vendor is subject to withholding tax. It does this when I post an FI invoice and hit enter. I have to go to the Withholding tax tab to check. I need this message before the invoice is saved/posted and not necessarily to check the tab.
Any ideas how to achieve this requirement?
Cheers
Victor

Thanks.
But how do I get the system to give me a message that the vendor is subject to withholding tax when I run transaction MIRO without going to the tab to check if the vendor is subject to withholding tax?
The objective here is that I want a message anytime before I save an invoice if the vendor is subject to withholding tax without the need to go check in the withholding tax tab when entering invoices.
Cheers
Victor

WTRE DMEE Tree Format File For France (Withholding Tax for France)

Hello,
I have to implement withholding tax for France on SAP 4.6C environment
I would like to generate and to send a file to administration
I m using generic withholding tax program RFIDYYWT but in DMEE tree transaction i see only one format of file : IDWTFILE_UK_CIS36E for withholding tax
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And how can I install this file format for France (steps in customizing , ossnote to apply ?????)
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Dear Merlino,
I have some steps about withholding tax is it suitable or not find out but some scenarios is suitable kindlay check out
Hi
Withholding tax is calculated and posted to the appropriate withholding tax accounts at different stages, depending on the legal requirements in each country. As a rule, withholding tax is posted at the same time that the payment is posted, in other words the outgoing payment (Accounts Payable) or incoming payment (Accounts Receivable), is reduced by the withholding tax amount.
In certain countries, such as Brazil, the Philippines, and Spain, withholding tax can or must be posted when the invoice is posted. This means that the amount receivable or payable is reduced by the withholding tax amount.
Extended withholding tax supports both concepts.
The key concept in extended withholding tax is the distinction between withholding tax type and withholding tax code. While withholding tax types represent basic calculation rules, specific features of these rules - in particular the percentage rate -
are represented by the withholding tax code. You can define any number of withholding tax codes for a given withholding tax type.
If a particular transaction requires more than one kind of withholding tax, this is covered in the SAP System by defining more than one withholding tax type.
When entering a line item, you can enter withholding tax data for each of these withholding tax types.
How To Configure Withholding Tax?
Steps for extended withholding tax :
1. Check withholding tax countries
2. Define Ex. Withholding tax types for invoice postings
3. Define Ex. Withholding tax codes
4. Formula for Ex. Withholding tax calculation
5. Assign Ex. Withholding tax types to Company code
6. Activate Ex. Withholding tax
8. Create a G/L a/C for Ex. Withholding tax
9. Define A/C for Ex. Withholding tax (DBWW)
10. Make changes in Vendor master (XK02)
11. Maintain Company Code Settings:
Path: IMG -> Logistic -> General -> Taxes on goods movement -> India -> Maintain company code settings
12. Activate country version for specific fiscal year position
Path: IMG -> FA -> -> **** -> Taxes on sales purchases -> Basic Setting -> India -> Activate country specific for fiscal year position
http://help.sap.com/saphelp_erp2005/helpdata/en/e5/0780914acd11d182b90000e829fbfe/content.htm
Hope this helps you
Prem

Withholding Tax on PO

Hi Guys,
We setup vendor master with withholding tax codes.When we are raising PO for that vendor the tax was not getting calculated.Are we missing any config?
Any help will be greatly Appreciated.
Thanks,

hi naidu,
the follwing steps for configuring withholding tax, if it helps assign points
1.spro-img-FA-****-WHT-EWHT-BASIC SETTINGS-CHECK WHT COUNTRY
2. DEFINE OFICIAL WHT
3. CHECK INCOME TYPES
4.SPRO-IMG-FA-FAGSWHT-EWHTBASICSETTINGS-INDIA-DEFINE BUSINESS
PLACE
5. ASSIGN FACTORY CALENDER FOR BUSINESS PLACES
6. MAINTAIN TAX DUE DATES
7. CALCULATION-WITHHOLDING TAX TYPE-WHT TYPE FOR INVOICE POSTING
CREAT THE WITH HOLDING TAX TYPES IN 7TH STEP
8. DEFINE WHT FOR PAYMENT POSTING
9. WITH HOLDING TAX CODES
MENTION TAX CODES IN STEP 9TH STEP
10. WHT BASE AMOUNT-PORTRAY DEPENDENCIES BETWEEN WHT TYPES
CESS ON TDS DEPENDENT ON TDS INVOICE POSTING
CESS ON SURCHARGE DEPENDENT ON TDS ON SURCHARGE
11. DEFINE MINIMUM AND MAXIMUM AMOUNTS FOR WHT CODES
12. COMPANY CODE---ASSIGN WHT TO COMPANY CODE
13.ACTIVATE EXTENDED WHT
14.POSTINGS-ACCOUNTS FOR WHT--DEFINE ACCOUNTS FOR WHT TO BE PAID OVER
15. MAINTAIN COMPANY CODE SETTINGS-SPROIMG-LOGISTIC GENERAL--TAX ON GOODS MOVEMENT-INDIA-BASIC SETTINGS--MAINTAIN COMPANY CODE SETTINGS
16.ASSIGN WHT TO VENDOR ACCOUNT
POST INVOICE TO VENDOR DOCUMENT IN F-43

Withholding tax - Remittance Chalan

Hi,
i had configured withholding tax and posted it was cal good but when i am going for Remittance Chalan with T.Cod "J1INCHLN - Create Remittance Chillan " i am having following error:
"Section Code IEQKLBP could not be determined in Customizing" in this "KLBP" is my business place.
in the above screen it is taking section code but not business place.
can any one give me solution .
thanking you
mahesh

Hi,
Follow below steps...
1. Use transaction SM30 and enter view J_1IINDCUS, click on maintain.
2. New Entry, enter your company code and select month April First Month.....save the settings and try..
Regards,
Chintan Joshi

Classic Withholding Tax and Extended Withholding Tax

Hi,
What is the difference between Classic Withholding Tax and Extended Withholding Tax.
Regards
RKG.

Hi
Withholding tax is calculated and posted to the appropriate withholding tax accounts at different stages, depending on the legal requirements in each country. As a rule, withholding tax is posted at the same time that the payment is posted, in other words the outgoing payment (Accounts Payable) or incoming payment (Accounts Receivable), is reduced by the withholding tax amount.
In certain countries, such as Brazil, the Philippines, and Spain, withholding tax can or must be posted when the invoice is posted. This means that the amount receivable or payable is reduced by the withholding tax amount.
Extended withholding tax supports both concepts.
The key concept in extended withholding tax is the distinction between withholding tax type and withholding tax code. While withholding tax types represent basic calculation rules, specific features of these rules - in particular the percentage rate -
are represented by the withholding tax code. You can define any number of withholding tax codes for a given withholding tax type.
If a particular transaction requires more than one kind of withholding tax, this is covered in the SAP System by defining more than one withholding tax type.
When entering a line item, you can enter withholding tax data for each of these withholding tax types.
How To Configure Withholding Tax?
Steps for extended withholding tax :
1. Check withholding tax countries
2. Define Ex. Withholding tax types for invoice postings
3. Define Ex. Withholding tax codes
4. Formula for Ex. Withholding tax calculation
5. Assign Ex. Withholding tax types to Company code
6. Activate Ex. Withholding tax
8. Create a G/L a/C for Ex. Withholding tax
9. Define A/C for Ex. Withholding tax (DBWW)
10. Make changes in Vendor master (XK02)
11. Maintain Company Code Settings:
Path: IMG -> Logistic -> General -> Taxes on goods movement -> India -> Maintain company code settings
12. Activate country version for specific fiscal year position
Path: IMG -> FA -> -> **** -> Taxes on sales purchases -> Basic Setting -> India -> Activate country specific for fiscal year position
http://help.sap.com/saphelp_erp2005/helpdata/en/e5/0780914acd11d182b90000e829fbfe/content.htm
nagesh

Withholding tax by location configuration

Hi all,
I wonder if anyone can help me with this. We want to be able to report withholding tax by location(where job is carried out not necessarily vendor location). What configuration can I put in place to facilitate this sort of reporting?

What I am actually trying to achieve is to be able to run withholding tax reports by states in Nigeria. This will mean entering each transaction with a location/region so that when this report is run I can sort through these figures by states. The only thing I can think of is to create a different code for every region but I am thinking there maybe a way of simply entering the region/location when posting the transaction. Is this possible?

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My client has requirement to have withholding tax flowing to accounting for rebate processing. I had followed step by step configuration from note 178824.
My problem is that in the sales order, for the new tax condition type ZPPX, system was able to determine the tax rate base, example : 15% but when I do pricing analysis, it does not come with the base value, and system is not showing zero value, but the condition is not coming in the sales order.
I put base type as 16 and working on ECC6.
Any one can face these issue? how to resolve it? thanks !
Chika

Thanks all,
Issue has been resolved, because this is rebate sales processing, so I need to tick for 'TPPP' field in the pricing procedure. It works well now.
chika

Configuration of Extended Withholding Tax

Dear Friends,
Please send me the document of configuration of Extended withholding tax for India.
Please treat this as urgent.
Thanks & Regards,
Reva.

Hai,
Kindly go through this link ...
http://help.sap.com/saphelp_erp2005vp/helpdata/en/1e/f4a18e11d811d4b5af006094b9ec21/frameset.htm
In this link.... under taxes... u will get the required info.
Raghav

Configure Withholding Tax

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