(ARG) Processing Withholding

This chapter provide an overview of value-added tax (VAT) withholding, lists prerequisites, and discusses how to:

• Process withholding for security services.

• Process security services withholding and withholding for general social security taxes (sistema único de seguridad social [SUSS]).

• Request the fiscal situation for suppliers.

• Upload AFIP (Administraćion Federal de Ingresos Públicos) information to the JD Edwards EnterpriseOne Accounts Payable system.

• Correct withholdings.

• Reprint certificates.

• Run the Profit Accrual Integrity Test programs.

See Also

Understanding Vouchers for Argentina

Understanding VAT Withholding by RG 726 or RG 615 for Argentina

R.G. 726/99 stipulates that VAT withholdings for payments be calculated every month based on the information that is published on the internet by AFIP for each supplier.

Depending on the classification that AFIP gives the supplier, you must apply either a substitute percentage or the general percentage for RG 18.

Prerequisites

Before completing the tasks in this chapter:

• Set up UDCs for supplier withholding.

  See Setting Up UDCs for Foreign Suppliers and Supplier Withholding for Argentina.

• Set up AAIs to account for VAT, gross income, contract, cleaning, and eventuals withholdings.

  See AAIs for Supplier Withholding for Argentina.

• Set up next numbers for withholding taxes.

  See Setting Up Next Numbers for Withholding Taxes.

• Set up next numbers for VAT and Profit withholding certificates.

  See Setting Up VAT and Profit Legal Number Withholdings for Argentina.

• Set up the system for these withholding types:

  • General SUSS.

  • Security services.

  • Cleaning services.

  • Contractors.

  • Gross income.

  • Profits.

  • VAT.

  • VAT according to regulation 726 or 615.

See Setting Up Suppliers for Argentina.

Processing Withholding for Security Services for Argentina

This section provides an overview of withholding for security services and lists the forms used to generate the security services withholding certificate.

Understanding Withholding for Security Services

The statutory regulation 1769 establishes a requirement that companies withhold taxes for vendors providing security services. The withholding requirements apply to amounts that exceed the threshold amount for a supplier during each month. Initially, the threshold is set at eight thousand pesos, so the withholding applies to amounts over eight thousand pesos.

The regulation does not require companies to withhold taxes for the payment of security services when the payments are made in a nonmonetary format. For example, if the supplier receives goods in exchange for security services, no withholding taxes are calculated on the value of the goods received.

The system calculates the withholding tax by subtracting the VAT and discount amounts from the gross amount. If the accumulated adjusted taxable amount for a month exceeds the threshold, the system applies the tax.

The system stores information about the withholding in the Security Withholding Payments (F76A0456) table. The stored information includes:

• Company

• Supplier

• Security withholding concept

• Month and year

• Taxable amount

• Withholding amount

When you use automatic payment processing to update payments, the system runs the Security Services Withholding Certificate program (R760457A) to issue a withholding certificate to each supplier for each month for which you withhold taxes for security services. The certificate includes:

• Issue date and next number.

• Name, address, and fiscal ID (clave única de identificación tributaria [CUIT]) of the withholding agent.

• Payment number.

• Name, address, denomination, and fiscal ID (CUIT) of the supplier.

• Legal number and legal document type for the document that originated the withholding.

• Amount on which the withholding was calculated.

• Withholding concept description from the Administración Federal de Ingresos Públicos (AFIP).

• Withholding amount.

• Signature lines for the signature of the withholding agent.

Use the Services Withholding Certificate program to reprint the certificate as necessary.

Voiding Payments

If you void or delete a manual or automatic payment, the system updates the amounts for the payment in the F76A0456 table.

Note. The Delete Unposted Automatic Payments and the Delete Unposted Manual Payments processing options in the A/P Manual Payments program (P0413M) are disabled for Argentina payments.

Payments to UTEs

If payments are made to members of a temporary enterprise union (UTE), the withholding is calculated for each member and a separate withholding certificate is issued to each member. The system stores the taxable amount for the UTE in the F76A0456 table using the address book number of the UTE, and stores the amount withheld using the address book number of each member of the UTE.

For example, suppose you make a payment of 10000 to a UTE (address book A). Three members of the UTE have address book numbers of 10, 20, and 30. The withholding amount is 300. The system would update the F76A0456 table with these entries:

For members of a UTE who are also direct vendors of the company, the system considers the payments that were made to the individual, regardless of whether the payments were made as a result of payments to the individual as a member of the UTE or as a direct vendor.

Example: Withholding Calculations

Suppose you make four payments to Supplier A in August, 2005.

The first payment consists of:

• Gross amount of 1210

• Tax of 210

• Taxable amount of 1000

Because the 1000 taxable amount is less than the 8000 minimum at which the tax is calculated, the system does not calculate the withholding. The system stores these values in the F76A0456 table:

• G/L Date - YR (data item DGY) = 05

• G/L Date – MO (data item DGM) = 08

• Taxable Amount (data item ATXA) = 1000

• Aging Amount 1 (data item AG1) = 0

The second payment consists of:

• Gross amount of 4420

• Tax of 420

• Taxable amount of 4000

The system adds the stored taxable amount from the F76A0456 table to the taxable amount of the second payment to determine whether taxes must be paid. Because the total of the taxable amount of the first payment (1000) plus the taxable amount of the second payment (4000) is less than the 8000 minimum, the system does not perform the tax calculations.

The system updates these values in the F76B0456 table:

• G/L Date - YR (data item DGY) = 05

• G/L Date – MO (data item DGM) = 08

• Taxable Amount (data item ATXA) = 5000

• Aging Amount 1 (data item AG1) = 0

The third payment consists of:

• Gross amount of 10220

• Tax of 1220

• Taxable amount of 9000

The system adds the stored taxable amount from the F76A0456 table to the taxable amount of the third payment to determine whether taxes must be paid. Because the stored amount (5000) plus the taxable amount for the third payment (9000) exceeds the 8000 minimum, the system calculates the tax:

(5000 + 9000) × tax rate (6 percent for this example) = 840 tax.

The system updates these values in the F76A0456 table:

• G/L Date - YR (data item DGY) = 05

• G/L Date – MO (data item DGM) = 08

• Taxable Amount (data item ATXA) = 14000

• Aging Amount 1 (data item AG1) = 840

The fourth payment consists of:

• Gross amount of 1210

• Tax of 210

• Taxable amount of 1000

The system adds the stored taxable amount from the F76A0456 table to the taxable amount of the fourth payment to determine whether taxes must be paid. Because the stored amount (14000) plus the taxable amount for the fourth payment (1000) exceeds the 8000 minimum, the system calculates the tax by making the calculation on the new total, then subtracting the amount of tax already withheld:

(14000 + 1000) × tax rate (6 percent for this example) = 900.

900 – 840 (accumulated withholding) = 60 withholding for payment four.

The system updates these values in the F76B0456 table:

• G/L Date - YR (data item DGY) = 05

• G/L Date - MO (data item DGM) = 08

• Taxable Amount (data item ATXA) = 15000

• Aging Amount 1 (data item AG1) = 900

Form Used to Generate the Security Services Withholding Certificate

Processing Withholding for General SUSS Taxes for Argentina

This section provides an overview of withholding for general SUSS taxes, lists the form used to generate the General SUSS Withholding Certificate, and discusses how to:

• Generate the flat file for general SUSS withholding for submission to AFIP.

• Set processing options for TXT File - SUSS and Contract WH Withholding (R76A4002).

• Generate the Withholdings Ledger (R760465A).

• Set processing options for Withholdings Ledger (R760465A).

Understanding Withholding for General SUSS Services

The statutory regulation 1784/04 requires that companies withhold general SUSS taxes when the supplier is an employer and is a registered VAT contributor. SUSS taxes are withheld when the calculated withholding on a payment exceeds the threshold that is set by the government. For example, if the threshold on a payment is 40 pesos, and the amount of the calculated tax is 50 pesos, the 50 pesos are withheld. If the calculated tax is 30 pesos, the tax will not be withheld because it is less than the 40 peso amount that is established as the minimum tax due.

The regulation does not require companies to withhold taxes when payments for general SUSS services is made in a nonmonetary format. For example, if the supplier receives goods in exchange for SUSS services, no withholding taxes are calculated on the value of the goods received.

The system calculates the withholding tax by subtracting the VAT and discount amounts from the gross amount. If the accumulated adjusted taxable amount for a month exceeds the threshold, the system applies the tax.

When you use automatic payment processing to update payments, the system runs the General SUSS Withholding Certificate program (R760458A) to issue a withholding certificate to each supplier for each payment for which you withhold taxes for general SUSS services. The certificate includes:

• Issue date and next number.

• Name, address, and fiscal ID (CUIT) of the withholding agent.

• Payment number.

• Name, address, denomination, and fiscal ID (CUIT) of the supplier.

• Legal number and legal document type for the document that originated the withholding.

• Amount on which the withholding was calculated.

• Withholding concept description from AFIP.

• Withholding amount.

• Signature lines for the signature of the withholding agent.

Use the General SUSS Withholding Certificate program to reprint the certificate as necessary.

Process for Withholding Taxes for General SUSS Services

To process withholding taxes for general SUSS services:

• Process payments using automatic payment processing or manual payments.

  When you update payments using the automatic payment process, the system runs the General S.U.S.S Services Withholding Certificate program (R760458A) to issue a withholding certificate to each supplier.

• Use the TXT File - SUSS and Contract WH Withholding program (R76A4002) to generate a flat file that you send to the government to report the taxes that you withheld from suppliers.

• Run version ZJDE0009 of the Withholdings Ledger program (R760465A) to generate a report listing the social security taxes withheld

Voiding Payments

If you void or delete a manual or automatic payment, the system adds the voided records to the F760414A table.

Note. The Delete Unposted Automatic Payments and Delete Unposted Manual Payments processing options in the A/P Manual Payments program (P0413M) are disabled for Argentina payments.

Payments to UTEs

If payments are made to members of a UTE, the withholding is calculated for each member and a separate withholding certificate is issued to each member. If the members of the UTE are not identified, the system prints only one certificate.

Flat File for General SUSS Services Reporting

You run the TXT File - SUSS and Contract WH Withholding (R76A4002) program to generate a flat file to report withholdings of general SUSS services taxes. You send the flat file to the government.

The flat file includes:

When the system generates the flat file:

• Amounts are reported in domestic currency.

• Only nonvoided documents for the period are processed.

• Overpayments are reported in the Excess Amount record.

• The system processes records with document types of:

  • $A (eventuals withholding)

  • $L (cleaning services withholding)

  • $P (security withholding)

  • $S (contract withholding)

  • $Q (SUSS withholding)

• The legal concept is obtained from the Contract Withholding Percentage (F760405A) table for contractor withholding.

• The legal concept is obtained from the Eventual Services Withholding (F760410A) table for eventual services withholding.

• The withholding date is equal to or less than the declaration period, and is always the date of the original invoice.

• A report listing the withholdings is also produced.

Form Used to Generate the General SUSS Withholding Certificate

Generating the Flat File for SUSS Withholding

Select Monthly Records (G76A121), TXT File - SUSS and Contract WH Withholding (R76A4002).

Setting Processing Options for TXT File - SUSS and Contract WH Withholding (R76A4002)

Processing options enable you to specify the default processing for programs and reports.

Process

Generating the Withholdings Ledger (R760465A)

Select Monthly Records (G76A121), Withholdings Ledger.

Select Version ZJDE0009 to process records for SUSS withholdings.

Setting Processing Options for Withholdings Ledger (R760465A)

Processing options enable you to specify the default processing for programs and reports. For reports, processing options enable you to specify the information that appears on reports.

General

Process Setup

Requesting the Fiscal Situation for Suppliers for Argentina

This section provides an overview of the Generate CUIT Information for AFIP program and discusses how to:

• Run the Generate CUIT Information for AFIP program.

• Set processing options for Generate CUIT Information for AFIP (R76A8090).

Understanding the Generate CUIT Information for AFIP Program

Every month, the AFIP publishes the fiscal situation of each taxpayer on the internet. It does this by using a classification value from 1 to 4.

To request fiscal information about their suppliers, companies must send a text file with the CUIT (clave única de identificación tributaria) number of the company that requests the information, as well as the CUIT number of the suppliers for whom the company wants to find the classification, to the AFIP.

Use the Generate CUIT Information for AFIP program to generate the text file that you send to AFIP. The system writes records to the F007100 and F007101 tables and names the text file RG726_CUIT.txt. Use the Text File Processor program (P007101) to extract the file to send to the AFIP.

Note. You must create a folder called Export in the directory in which your system was installed. The name of the subdirectory under the installation directory is determined during installation, and might or might not correspond to the name of the package that was installed. The system saves the RG726_CUIT.txt file in the Export folder.

You must upload the RG726_CUIT.txt file to the AFIP internet site.

Note. You should set the data selection to include all suppliers.

When you send AFIP a list of the suppliers for which you want information, you must also include the names of responsible unregistered parties and single and VAT-exempt taxpayers because the system verifies that information exists for all of the suppliers that are selected, regardless of their tax condition (with the exception of foreign suppliers).

The Generate CUIT Information for AFIP program does not generate a printed report.

Running the Generate CUIT Information for AFIP Program

Select General Resolution 726 (G76A726), Generate CUIT Information for AFIP.

Setting Processing Options for Generate CUIT Information for AFIP (R76A8090)

Processing options enable you to specify the default processing for programs and reports.

General

Uploading AFIP Information to the Accounts Payable System for Argentina

This section provides an overview of how to upload AFIP information to the JD Edwards EnterpriseOne Accounts Payable system, lists a prerequisite, and discusses how to:

• Convert AFIP information to JD Edwards EnterpriseOne Accounts Payable information.

• Modify AFIP information.

Understanding How to Upload AFIP Information to the Accounts Payable System

After receiving a request for information, AFIP sends a text file with the classification of suppliers, the month and date when the information is current, and other data.

You use the Convert AFIP File to EnterpriseOne program (P76A8010) to upload the information from the AFIP file to the Supplier Information RG 726 - 04 table (F76A8011). In addition to the required information, the AFIP text file includes complementary information that the system stores in the F76A8011 table for future use.

Important! The AFIP information that you receive might or might not include the corporate name of the supplier. To process it in JD Edwards EnterpriseOne software, you must not include the supplier's corporate name.

This conversion process can be run as many times as needed for the same month and year.

If you request information from AFIP more than once, you should inquire only about the group of excluded suppliers.

The conversion process does not generate a printed report.

Note. The F76A8011 table stores a history of AFIP answers for all of the months that are queried.

Modifying AFIP Information

You can use the Work with AFIP Information program (P76A8011) to modify the AFIP-provided information for individual suppliers. You can also add supplier information.

You should modify AFIP information only when some information must be set up for a specific supplier that was not included in the previous process. For example, if you set up a supplier after requesting information from AFIP for that month, you can perform the setup for that supplier only with the data that is provided.

Prerequisite

Upload the text file that you receive from AFIP to the AS400 F76A8010 table. The system converts the information from this table to the F76A8011 table.

Forms Used to Upload AFIP Information to the Accounts Payable System

Converting AFIP Information to JD Edwards EnterpriseOne Accounts Payable Information

Access the Convert AFIP File to OW - RG 726 form.

Click Convertir (convert) to convert the information to the JD Edwards EnterpriseOne Accounts Payable system.

Modifying AFIP Information

Access the Add Information AFIP RG726 form.

Supplier Type RG615

Enter the type of supplier, classified according to the information that the AFIP provides using the internet on a monthly basis. This classification corresponds to the supplier types that are specified in RG 726 and RG 615. Values are stored in the Supplier Type UDC table (76A/A4).

Correcting Withholdings for Argentina

This section provides an overview of withholding correction and discusses how to enter a correction.

Understanding Withholding Correction

Withholding taxes for Argentina are calculated during the automatic payment process. You can adjust faulty tax withholding calculations that result from problems with the setup.

You can correct gross income, VAT, profit, eventuals, and contract withholdings.

Forms Used to Correct Withholdings

Entering a Correction

Access the Voucher Additional Information - Revision form.

AFIP Transaction Document Type	Enter the legal document type that is given by DGI (Direccion General Impositiv) for documents.
Invoice Group	Enter a value that exists in the ARG - Item ARGP-Allowed Values (76/B1) UDC table.
Voucher Pages	Specify the number of pages allowed for the voucher.
Operation Code	Enter a value that exists in the Operation Codes (76A/OC) UDC table.
Fiscal Controller	Enter a value that exists in the Fiscal Controller (76A/CF) UDC table.

Reprinting Certificates for Argentina

This section provides an overview of certificate reprinting and discusses how to:

• Run the appropriate withholding (WH) certificate program.

• Set data selection for the WH certificate report.

• Set Processing Options for VAT WH Certificate (R7604521A) and Profit WH Certificate (R7604531A).

Understanding Certificate Reprinting

You can use any of the following programs to reprint certificates:

• Gross Income WH Certificate (R76A04511A).

• VAT WH Certificate (R7604521A).

• Profit WH Certificate (R7604531A).

• S.U.S.S. WH Certificate (R7604541A).

• Contract WH Certificate (R7604851A).

The following programs have a processing option that enables you to specify the issue place that the program uses to obtain the next numbers for the VAT and profit withholdings:

• VAT WH Certificate (R7604521A).

• Profit WH Certificate (R7604531A).

For withholdings that do not have a legal number (such as manual payment with voucher match withholdings), you must use this processing option to specify the issue place to use to generate legal numbers.

If you specify an issue place that has not been properly set up in the Certificate Next Number RG 738 (A/P) program (P76A8080) or leave the processing option blank, the legal number is not generated.

Running the WH Certificate Reports

Select Monthly Reports (G76A121).

Select one of the following WH Certificate reports:

• Gross Income WH Certificate.

• VAT WH Certificate.

• Profit WH Certificate.

• S.U.S.S. WH Certificate.

• Contract WH Certificate.

Setting Data Selection for the WH Certificate Report

Specify the document type that corresponds to the withholding type in the data selection.

The following example shows a possible data selection for a VAT WH Certificate:

Setting Processing Options for VAT WH Certificate (R7604521A) and Profit WH Certificate (R7604531A)

Processing options enable you to specify the default processing for programs and reports.

RG 738/99

Running the Profit Accrual Integrity Test for Argentina

This section provides an overview of the profit accrual integrity test and discusses how to:

• Run the Profit Accumulate Integrity Test-Step I program.

• Set data selection for Profit Accumulate Integrity Test-Step I.

• Set processing options for Profit Accumulate Integrity Test-Step I (R760455A).

• Run the Profit Accumulate Integrity Test-Step II program.

• Set processing options for Profit Accumulate Integrity Test-Step II (R760456A).

Understanding the Profit Accrual Integrity Test

To calculate the amount withheld, the company that makes the payment must add the taxable base amounts that correspond to the amount that is paid to that supplier during that month, subtract the minimum, and then calculate the appropriate percentage.

The system records profit accruals in the Profit Withholding - Payments Done table (F760406A). Each time that you calculate profit withholdings, the system accesses this table by using the company, supplier, concept, and payment month to obtain the sum of the taxable base amounts and withholdings for the previous payments. After you calculate and generate the withholdings, the system updates the table, adding the amount withheld to the sum of withholdings for the month (AG1 field) and the taxable base amount for the payment to the sum of taxable base amounts for the month (ATXA field).

Performing Step I of the Profit Accrual Integrity Test

The Profit Accumulate Integrity Test-Step I report (R760455A) calculates the sum of all of the payments that are made in a given period of time from the F0411 table and the Accounts Payable Matching Document Detail table (F0414), and verifies that the accrual of profit withholdings matches the total withheld for each supplier in the F760406A table. The program produces a printed report if a difference exists.

You use the processing options to specify whether the system updates table F760406A.

The program selects data based on the supplier's current account.

Performing Step II of the Profit Accrual Integrity Test

The Profit Accumulate Integrity Test-Step II report (R760456A) verifies that the total amount withheld for each provider set up in the F760406A table matches at least one payment made in a given period of time. It verifies that the data is consistent.

You use the processing options to specify whether the system purges all of the records from the F760406A table. If you leave the processing option blank, the table is not purged and records with errors are not deleted.

The Profit Accumulate Integrity Test-Step II program produces a report of records that have errors.

Running the Profit Accumulate Integrity Test-Step I Report

Select Additional Features - Set up (G76A116), Profit Accumulate Integrity Test-Step I.

Setting Data Selection for Profit Accumulate Integrity Test-Step I

The data selection for the version that is created must include, at a minimum, the date range in which payment was made (RMVLDT). You can add to or modify the data selection.

Setting Processing Options for Profit Accumulate Integrity Test-Step I (R760455A)

Processing options enable you to specify the default processing for programs and reports.

Process

Running the Profit Accumulate Integrity Test-Step II Report

Select Additional Features - Set up (G76A116), Profit Accumulate Integrity Test-Step II.

Setting Processing Options for Profit Accumulate Integrity Test-Step II (R760456A)

Processing options enable you to specify the default processing for programs and reports.

Process