AutoSelect and Build Payments
Rate Determination
The rate of Withholding Tax to be applied to an invoice is determined provisionally at the time of invoice entry and finally at the time of payment according to the rules below:
- If the vendor is the holder of a Reporting Exemption Certificate, then no tax is deducted and no elective higher rate can be specified.
- If the vendor has no Tax File number, then Withholding Tax is deducted at the current "PENALTY" rate and no elective higher rate can be accepted.
- If there is a current Payee elected payment variation rate, Withholding Tax is deducted at this rate. This is done after checking that this Payee elected rate is higher than the valid certificate or "STANDARD" rate. If the elected variation rate is not higher, then the valid certificate or "STANDARD" rate is used.
- If there is a current Exemption or Variation certificate for the vendor, Withholding Tax is deducted at the rate defined on the certificate.
- Tax is deducted at the current "STANDARD" rate.
Tax Authority Payment Rounding
The final payment made to the Tax authority is truncated to whole dollars and the Withholding Tax and invoice payment amounts are proportionally adjusted so the amounts balance.
