Extended Withholding tax configuration (1)

We do not want any different exchange rate type

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Unformatted text preview: nts that specify which exchange rate is to be used. We do not want any different exchange rate type, therefore we leave it blank. www.sapficoconsultant.com Page 21 of 57 2.1.4 Define Rounding Rule for Withholding Tax Type IMG à Financial Accounting à Financial Accounting Global Settings à Withholding Taxà Extended Withholding Tax à Calculationà Withholding Tax Type à Define Rounding Rule for Withholding Tax Type Here we define rounding rules for the individual withholding tax types. Click on Click on www.sapficoconsultant.com Page 22 of 57 2.2 Withholding Tax Codes The withholding tax code determines the withholding tax percentage. 2.2.1 Define Withholding Tax Codes IMG à Financial Accounting à Financial Accounting Global Settings à Withholding Taxà Extended Withholding Tax à Calculationà Withholding Tax Codes à Define Withholding Tax Codes Currently the withholding tax rate is same for company and a firm which is not a company. But in future the rates will differ; therefore we create the 2 codes one for company and another for other than company Let us create 2 withholding tax codes for Contractors (Companies & other than companies) for Invoice posting and 2 tax codes for Payment posting (Companies & other than companies) Let us create 2 withholding tax codes for Professional & Technical services for Invoice posting (Companies & other than companies) Click on Update the following:Take a drop down in the field Post. Indic Select 1 www.sapficoconsultant.com Page 23 of 57 Click on Click on Update the following:- www.sapficoconsultant.com Page 24 of 57 Click on Click on www.sapficoconsultant.com Page 25 of 57 Update the following:- Click on Click on www.sapficoconsultant.com Page 26 of 57 Click on Let us now create withholding tax code for Professional services Click on Update the following:- www.sapficoconsultant.com Page 27 of 57 Click on Click Click on Update the following:- www.sapficoconsultant.com Page 28 of 57 Click on Similarly you can create codes A3 and A4 for Prof Services for Advance payments 2.2.2 Define Formulas for Calculating Withholding Tax IMG à Financial Accounting à Financial Accounting Global Settings à Withholding Taxà Extended Withholding Tax à Calculationà W ithholding Tax Codes à Define Formulas for Calculating Withholding Tax Here you define formulas (scales) for calculating withholding tax. This formulas are used where the calculation is quite complex. Our calculation is quite simpl...
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