With-Holding Tax Settings in SD

[Former Member]

Our client wants to implement With-Holding (W/H) tax for Saudi Arabia. The A/P side configuration is completed with tax types T1 and T2 (W/H postings at the time of invoice and W/H tax postings during payment respectively). The required tax codes are also created under these tax types and we are able to post W/H tax in FB60, FB65, FB70 and MIRO successfully. 

In similar lines, we need to configure the A/R related settings for With-Holding tax such that it appears on the accounting document of billing. We need pointers to achieve this with SD related configuration settings (like new tax condition types in pricing procedure, routines, tax settings etc.).

Please respond with details in case you have implemented a similar requirement for you client.

Regards,

Jagan

[jiteshmehta · Accepted solution]

Hi Jagannadha Chandrasekhar

I can just try to help by providing pointers

1) I assume you might have referred best practice Building Block

http://help.sap.com/saap/sap_bp/BP_BL_ERP607_SAV2/HTML/Content_Library_BL_EN_SA.htm

specifically 102: External Financial Accounting which has 3.2.4 Tax on Sales/Purchases and 3.2.5 Withholding Tax.   -  for configuration of Withholding tax

2) SAP note 1968558 - KSA Basic customizing Delivery which has BC set for TAXSA

Thanks

Jitesh

[Former Member]

As per my view for withholding tax not need to create condition type create withholding tax code and assign in customer master accordingly and if withholding tax code is not flow on sd invoice then review sap note 178824.

Regards

Suresh Kumar