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Withholding tax issue- Argentina

Former Member
0 Kudos

Hello All,

For Argentina, we are using "Withholding Tax type for Payment Posting".

We have Payment grouping enable for the payment method.

i.e. One Payment document for Multiple invoices.

Our requirement is to have Withholding tax bae exemption amount considered per Payment document (and not per invoice)

e.g. Invoice 1 base amount- 10000 ARS

       Invoice 2 base amount - 20000 ARS

Total Base amount = 30000 ARS

say, Withholding tax rate = 6%

Withholding tax base exemption amount customied for Withholding tax type -Tax code combination is 1200 ARS

DESIRED: So, Withholding tax should be (30000 - 1200) * 6% = 1728 ARS

But what is right now being caluclated is per invoice

this is what we are having

(10000-1200)*6% = 528

(20000-1200) * 6% = 1128

Total = 1656 ARS

i.e. withholding tax base exemption amount is deducted for each invoice.

How can we have the amount calculated per Payment Document.

Can you please suggest.

Thanks in Advance

BR

Amitash

Accepted Solutions (1)

Accepted Solutions (1)

former_member197737
Contributor
0 Kudos

Hi Amitash,

What is your setting for minimum check for withholding type (table-field T059P-WT_BCPLVL)? Try with "Min.Amt Check at Payment Doc.Level" (T059P-WT_BCPLVL = 3).

Best regards!

Mgitur

Former Member
0 Kudos

Hello Mgitur,

Thanks for your reply.

The value of the field is already set as "3" in the customizatoin but it didn't work.

Any other suggestions?

Thanks

BR

Amitash

former_member198650
Active Contributor
0 Kudos

Hi Amitash,

In withholding tax code configuration you do not provide any rate and kept it as blank and select "W.tax from." check box. Later click on define formulas for calculating w.h.tax, create a entry  for w.h.tax type & code combination with validaty date, after that select formulas for calculating w.h.tax and maintained as mentioned below:

to base amount          %              redu.base amount

1200                          0

99999999999             6%                    1200



Regards,

Mukthar


former_member197737
Contributor
0 Kudos

Hi Amitash,

Withholding type, indicator and Minimum and Maximum Amounts customizing should be as follow:

Best regards!

Mgitur

Former Member
0 Kudos

Hi Mukthar,

Thanks for your reply. With this Setting, the System deduct 1200 from the Net amount, and then put 6% tax after deducting 1200 again (as Redu. base amount). That means 1200 is decuted 2 times which is not we want.

As mentioned, our Problem is that when grouping of payments is there, the System is reduction 1200 for each Invoice and not Per payment and we want the decution per payment document.

Is there any other solution which you suggest.

Thanks a lot again

BR

Amitash

Former Member
0 Kudos

Hi Mgitur,

Thanks for the Suggestion. we have exactly the same customization. Only in place of "Monthly" we have "No Accumulation" as Accumulation type. But still the Reduced amount is considered per Invoice and not per payment document when the GROUPING of PAYMENTS is there.

Any other Suggestion which you would like to Recommend.

Thanks again.

BR

Amitash

former_member197737
Contributor
0 Kudos

Hi Amitash,

That's weird, with mentioned customizing I'm getting the following withholding result in F-53 (maual payment):

I'm getting the 1.720 by payment you desired.

Best regards!

Mgitur

Former Member
0 Kudos

Hi Mgitur,

I deleted and made the customizations again as per your screenshot and now it's working perfectly fine.

Thanks a lot for your help.

Cheers

BR

Amitash

Answers (0)