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Defining Withholding Tax Certificates and Exceptions

Prerequisites:

   Enable the Use Withholding Tax Payables option. See: Payables Options.

   Define Withholding Tax type tax names. See: Tax Names.

   Enter withholding tax details for suppliers: See: Withholding Tax Region of the Suppliers and Suppliers Sites windows.

   To define a withholding tax certificate:

1. In the Maintain Tax & Certificates window, enter a supplier name or supplier number, and supplier site for which you want to define a certificate or an exception.

2. In the Certificate region, enter the Withholding Tax type tax name for which you want to define a withholding tax certificate.

3. Enter the certificate number. This number can be user-defined or it can be a number assigned to a certificate issued to the supplier by the tax authority.

4. Enter the certificate type. Payables predefines the Standard type. Define additional certificate types in the QuickCodes window. See: Quickcodes.

5. Enter the certificate priority. If you have one or more certificates for the same Withholding Tax type tax name with an overlapping effective date range, Payables applies the certificate with the highest priority (1 = highest priority). Only one certificate can be enforced at a time.

6. Enter the certificate tax rate for the Withholding Tax type tax name. If the certificate specifies that the supplier site is exempt from this tax name, enter 0 as the rate.

7. Enter the effective date range for the certificate tax rate. If you want to limit the dates during which the certificate is effective, you can enter just a From date, just a To date, or both a From date and a To date. You can enter overlapping effective date ranges on different certificates for the same Withholding Tax type tax name for the same supplier site if you specify a unique priority for each certificate.

8. Enter any comments that apply to the current tax certificate.

9. Save your work.

   To define a withholding tax exception:

1. In the Maintain Tax & Certificates window, enter a supplier name, supplier number, and supplier site for which you want to define a certificate or an exception.

2. In the Exception region, enter the Withholding Tax type tax name for which you want to define an exception.

3. Enter the invoice number to which the current exception applies. If you enter the invoice before entering the exception, select from a list of values the invoice number to link the exception to the invoice. If you enter the exception before entering the invoice, enter the unvalidated invoice number and Payables will automatically link the exception to the invoice number when you enter the invoice.

4. Enter the exception rate for the invoice.

5. Enter the effective date range for the exception. If you want to limit the dates during which the exception is effective, you can enter just a From date, just a To date, or both a From date and a To date. If you enter an incorrect invoice number for an exception, enter an effective date range in the past to inactivate an exception rate for an invoice.

6. Enter any comments that apply to the current tax exception.

7. Save your work.

See Also

Maintain Tax & Certificates Window Reference