This chapter contains the following topics:
Section 4.5, "Setting Up Contractor Withholding for Argentina"
Section 4.6, "Setting Up Gross Income Withholding for Argentina"
Section 4.9, "Setting Up VAT and Profit Legal Number Withholdings for Argentina"
Section 4.10, "Setting Up VAT Withholdings by RG 726 or RG 615 for Argentina"
Section 4.11, "Setting Up VAT Withholdings by RG 3164 for Argentina,"
Verify that document types $A, $G, $I, and $S are set up in the Document Types (00/DT) and Document Types - Vouchers Only (00/DV) user-defined code (UDC) tables.
Enter a code that exists in the ARG - Item ABCN - allowed values (76/A1) UDC table to specify an amount type to compare against the minimum amount in the withholding calculation process.
Enter the first day on which the withholding term is effective.
Enter the expiration date of the withholding terms.
Enter the withholding description code that is based on the tables from the tax authority (Direccion General Impositiva [DGI]). You set up legal concepts in various UDCs.
Enter the minimum amount for the withholding.
Enter the percentage of the withholding. The maximum value that you can enter is 999,99.
Enter the effective date of the resolution.
This section provides overviews of withholding for general SUSS, security services, and cleaning services; lists prerequisites; and discusses how to:
Set up withholding percentages for SUSS and cleaning services withholding.
Set up supplier exemptions for SUSS and cleaning services withholding.
To set up your system to withhold taxes for general SUSS services:
In the Document Type (00/DT) and Document Type - Vouchers Only (00/DV) UDC tables, set up $Q as the document type that identifies withholdings for security services.
Enter 3 in the Special Handling Code field of the values that you establish in the SUSS Withholding Concept (76/11) UDC table to identify the SUSS withholding concept for general SUSS withholding.
Use position seven to enter Y (yes) or N (no) to specify whether the system withholds the tax for nonmonetary payments.
For general SUSS services, enter N in the seventh position. The system treats a blank value in the seventh position as a Y.
Verify that the Withholding Minimum (76A/WM) UDC table includes the required values.
Verify that other system setup, such as automatic accounting instructions (AAIs), next numbers, UDCs, and so on, are set up for the withholding of taxes for general SUSS.
Add values for the withholding on general SUSS to:
S.U.S.S. W/H - Percentages (P760410A).
S.U.S.S. W/H - Exempt Percentages (P760416A).
To process withholding taxes for security services:
In the Document Types (00/DT) and Document Types - Vouchers Only (00/DV) UDC tables, set up $P as the document type that identifies withholdings for security services.
Enter 2 in the Special Handling Code field of the values that you establish in the SUSS Withholding Concept (76/11) UDC table to identify the SUSS withholding concept for investigation and security services.
Set up a payment instrument in the Payment Instrument (00/PY) UDC table for taxes for security services that you withhold from suppliers.
Specify in the fifth and sixth positions of the Special Handling Code field whether withholding applies and is accumulated.
Use position five to enter Y (yes) or N (no) for application of the withholding tax, and use position six to enter Y (yes) or N (no) to specify whether the system accumulates the withholding taxes in the F76A0456 table. The system treats blank values in the fifth and sixth positions as Y.
Verify that other system setup, such as AAIs, next numbers, UDCs and so on, are set up for the withholding of taxes for security services.
Add values for the withholding of taxes on security services to:
S.U.S.S. W/H - Percentages (P760410A).
S.U.S.S. W/H - Exempt Percentages (P760416A).
AFIP (Administración Federal de Ingresos Públicos) General Resolution 1556 established a new withholding method for cleaning services, valid as of November 1, 2003. JD Edwards EnterpriseOne software meets this requirement by using the same programs that are used for eventual services withholdings. This section explains how to set up these programs for both types of withholdings.
You cannot apply both SUSS withholdings and eventual services withholdings at the same time because the combination of the two withholdings might create an undue burden. However, if a company that provides eventual services also provides personnel to carry out cleaning tasks, that company should not make withholdings for cleaning services under General Resolution 1556 because the company does not lose its position as provider of eventual services.
Add values for the withholding of taxes on cleaning services to:
S.U.S.S. W/H - Percentages (P760410A).
S.U.S.S. W/H - Exempt Percentages (P760416A).
Verify that these UDCs are set up prior to processing withholding for cleaning services:
ARG - Eventual Concept (76/11).
ARG - Eventual Legal Concept (76/L5).
| Form Name | Form ID | Navigation | Usage |
|---|---|---|---|
| S.U.S.S. Percentages - Revision | W760410AB | S.U.S.S. Vendors WH - Set up (G76A115), S.U.S.S. W/H - Percentages | Set up withholding percentages to specify the type of withholding. |
| Withholding Exempt Percentage Revision | W760416AB | S.U.S.S. Vendors WH - Set up (G76A115), S.U.S.S. W/H - Exempt Percentages
Click Add on the Work with Withholding Exempt Percentage form. |
Set up supplier exemptions from withholdings to specify withholding exemption percentage for suppliers. |
Access the S.U.S.S. Percentages - Revision form.
Enter a value that exists in the SUSS Withholding Concept (76/11) UDC to identify the type of SUSS withholding.
Enter a value that exists in the ARG - G.I. State - Source (76/09) UDC table.
Enter the amount type to use in the withholding calculation process.
Enter a value that exists in the Withholding Minimum (76A/WM) UDC table to define the relationship between the withholding or taxable amount and the minimum taxable amount.
This section provides an overview of setting up for SUSS withholding and discusses how to:
Set processing options for UTE Type Composition (P76A401).
Set up UTE members.
When a supplier is a UTE (temporary enterprise union), SUSS withholding is calculated individually for each member of the UTE according to the percentage of participation in the UTE. The system prints withholding certificates for each member of the UTE. You specify the participation percentage for each member of the UTE. If any member of the UTE is a direct supplier of the company, payments to that supplier are included in the SUSS withholding calculation when payments are made to the UTE.
You can add, change, or delete UTE members if:
No payment has been made to the UTE.
A payment has been made and has been voided.
A payment is made and has been posted.
You cannot make changes to the UTE membership if a payment is in process.
To set up suppliers as members of UTEs for SUSS withholding:
Set up the UTE as a supplier in the JD Edwards EnterpriseOne Address Book system.
You identify the address book record as a record for a UTE by setting up a system 01 category code. You can use any category code and any value in that category code. When you set up the UTE for SUSS withholding in the UTE Type Composition program, you specify the category code that identifies records as those for UTEs.
Set up an address book record for each member of the UTE.
It is not necessary to assign an address book category code to the individual members of the UTE.
Use the UTE Type Composition program to identify the members of a UTE and the percentage of participation in the UTE
The system stores the information about the UTE, the members, and the participation amounts in the UTE Members Type table (F76A401).
Processing options enable you to specify default processing values. Access this processing option by selecting UTE Type Composition from the Additional Features Setup (G76A116) menu.
Enter the address book category code that you set up to indicate that a supplier is a UTE.
The system verifies that the address book record that you specify as the UTE on the Add UTE Members Type form includes a value from the category code that you enter here.
Access the Add UTE Members Type form.
Enter the address book number of the UTE. The system verifies that the address book record that you specify includes a value from the category code that you specified in the processing option for the UTE Type Composition program.
Enter the address book number of a member of the UTE.
Enter the percentage of participation for the member. The system uses this percentage when calculating SUSS withholding.
This section provides an overview of withholding percentages for supplier services, lists prerequisites, and discusses how to:
Set up withholding rate and taxable base amounts.
Set up supplier exemptions for contract withholdings.
Before you can process withholding for contractor services, you must set up withholding percentages. You use the Contract Services Withholding Percentages program (P760405A) to set up withholding percentages for each type of contractor service that you use, such as engineering and architectural services. You also specify the minimum amount of services that you must purchase from a contractor before you begin to withhold the social security withholding amounts. The government establishes the amount that must be attained before you begin withholding social security amounts. The system saves the data that you set up to the Contract Withholding Percentage table (F760405A).
You use the Contract W/H Exempt Percentage program (P760416A) to specify the transactions for which a specified supplier is exempt from withholding. The system uses document types to identify the transactions. The system saves the data that you set up to the Withholding Exempt Percentage table (F7607A).
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Note: If you assign 0% to a withholding concept and then assign that concept to a voucher line for a contract service, the system does not calculate withholding for the line, but does include the base amount of the line in the Contract Withholding – Payments Done table (F76A430) when you process the payment. |
Verify that these UDCs are set up before processing withholding for cleaning services:
ARG - Contract Concept (76/07)
ARG-Item ABI-Allowed Values (76/A2)
ARG - Contract Legal Concept (76/L4)
Access the Add Contract Services Withholding Percentages form.
Specify the company for which you set up the withholding percentage.
Enter a value from the ARG-Contract Concept (76/07) UDC table to specify the concept for which you set up the withholding percentage.
Enter the beginning of the date range for which the percentage is in effect.
Enter the end of the date range for which the percentage is in effect.
Enter the minimum amount on which withholding is calculated. The system does not calculate withholding payments until the supplier exceeds this amount.
Enter the withholding percentage.
Enter a value from the ARG-Item ABI-Allowed Values (76/A2) to specify the amount on which to apply the percentage. Examples of values are:
1: Gross amount
2: Taxable amount
Enter a value from the ARG-Contract Legal Concept (76/L4) UDC table to specify the legal concept.
Access the Withholding Exempt Percentage Revision form.
Enter the address book number of the supplier who is exempt from withholding for the tax type that you specify in the Document Type field.
You cannot modify the address number for an existing record.
Enter a value from the Document Type (00/DT) UDC table to specify the document type of the transaction that is exempt.
You cannot modify the document type of an existing record.
Enter the beginning of the date range for which the percentage exemption is in effect.
You cannot modify the effective date if the date is in the past.
Enter the end of the date range for which the percentage exemption is in effect.
Enter the percentage of the transaction that is exempt from withholding for the document type that you specified.
Enter the date of the resolution that allows for the exemption to withholding.
This section lists prerequisites and discusses how to:
Set up supplier gross income agreements by state.
Set up state specifications.
Set up gross income withholding percentages.
Set up supplier gross income withholding exemptions.
Verify that these UDCs are set up:
ARG - G.I. Agreement Code (76/01).
ARG - G.I. Concept - Source (76/05).
ARG - G.I. Concept - Destination (76/06).
ARG - G.I. State - Source (76/09).
ARG - G.I. State - Destination (76/10).
ARG - Gross Income Legal Conc. (76/L2).
Access the Supplier State Agreement Revision form.
Enter a value that exists in the ARG-G.I. State - Source (76/09) UDC table to specify the state in which the gross income is earned.
Enter the tax ID of the company earning the income.
Enter a value that exists in the ARG-G.I. Agreement Code (76/01) UDC table to specify the agreement code to associate to the record.
Access the Gross Income States Revisions form.
Enter a value that exists in the ARG - G.I. State - Source (76/09) UDC table to specify the state of origin.
Enter a value that exists in the ARG - Item ATCN - Allowed Values (76/A6) UDC table to indicate when the total amount must be compared against the minimum amount. If the total amount is greater than the minimum amount, the system calculates withholding. The total amount might be determined by voucher amount or payment amount.
Enter a value that exists in the ARG - Item ATN - Allowed Values (76/A5) UDC table to specify the gross income withholding next number type.
Enter the number that the system will assign next. You must use the next number types already established unless you provide custom programming.
Access the Gross Income Percentage Revisions form.
Enter a code that exists in the ARG - G.I. Concept - Source (76/05) UDC table to indicate the type of income, such as income from services, sale of goods, or other.
Enter a value that exists in the ARG - G.I. Agreement Code (76/01) UDC table to indicate the type of agreement.
Enter a value that exists in the ARG - G.I. State - Source (76/09) UDC table to specify the state of origin.
Enter the base amount on which the withholding percentage is calculated.
Enter a value that exists in the ARG - Item ABI - Allowed Values (76/A2) UDC table to specify the type of amount on which the calculations are made.
Enter a value that exists in the ARG - Item ABCN - allowed values (76/A1) UDC table to specify the type of amount to compare.
Enter a value that exists in the ARG - Gross Income Legal Conc. (76/L2) UDC table to specify the concept that applies.
This section provides an overview of setup for VAT withholding for small contributors, lists prerequisites, and discusses how to:
Set up VAT withholding percentages.
Set up VAT withholding exempt percentages.
For many suppliers, you set up and process VAT and profit withholding when a tax rate area is set up for the invoice that you enter for the supplier, and the system calculates profit withholding based on accumulated payments. When you work with small contributors, you might have a zero-rate tax rate area assigned to the invoice, and you have not tracked the accumulated payment amounts.
To enable the system to calculate the VAT withholding for small contributors assigned a zero-rate tax rate area, and without considering accumulated payment amounts, enter 1 in the Calculation Basis field on the V.A.T Withholding Percentages form of the V.A.T WH - Percentages program (P760402A).
Verify that these UDCs are set up:
ARG - VAT Withholding Concept (76/02).
ARG - VAT Legal Concept (76/L1).
Calculation Basis VAT WH (76A/CV)
Access the V.A.T. Withholding Percentages form.
Enter the company number for which you set up the withholding percentages.
Enter a value that exists in the ARG-VAT Withholding Concept (76/02) UDC table.
Enter the first day on which the withholding term is effective.
Enter the expiration date of the withholding terms.
Enter the percentage of the withholding. The maximum value that you can enter is 999,99.
Select a code value from the Arg. VAT Legal Concept UDC table (76/L1) that identifies the concept based on the tables from the tax authority.
Enter the minimum amount for withholding. The calculated withholding amount must be greater than this minimum amount to take effect.
Enter a value that exists in the ARG-V.A.T. Legal Concept (76/L1) UDC table.
Select a value from the Calculation Basis VAT WH UDC table (76A/CV) to indicate the concept that the system uses as the calculation basis for VAT Withholding.
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Note: You should not modify the calculation basis for records that have been processed. If you must modify the calculation basis for existing records, Oracle strongly recommends that you change the Expiration Date of your existing records to the current date; and then generate new records that use the new calculation basis. |
This section provides overviews of profit withholding setup and temporary enterprise union (UTE) membership, and discusses how to:
Set up profit withholding percentages.
Set up fourth category profit withholding percentages.
Set up profit withholding exemptions by supplier.
Set up UTE members.
For the system to calculate profit withholdings, you must set up:
UDCs.
Profit withholding percentages.
Fourth category profit withholding percentages.
Suppliers exempted from profit withholding, if needed.
To meet the requirements of RG 830/00, you must consider additional setup requirements. Article 28 of RG 830/00 stipulates:
"Profits stemming from copyright use and others derived from rights protected under Law No. 11.723 will only be taxed until earnings accrued reach the amount of TEN THOUSAND PESOS ($10,000.-) during each fiscal period for each withholding agent."
"After the aforementioned amount is surpassed, payments are subject to withholdings in conformity with the calculation method set forth in articles 25 and 26. As per clause a) of said article 26, withholdings shall not be taken from payments before the previously mentioned sum was reached."
The system stores all of the taxable amounts of invoices in the Profit Withholding - Payments Done table (F76A8070) to determine when amounts surpass the annual upper limit amount.
The structure of table F76A8070 is identical to that of the Profit Withholding - Payments Done table (F760406A). Both tables are populated when payments are updated.
For many suppliers, you set up and process profit withholding when a tax rate area is set up for the invoice that you enter for the supplier, and the system calculates profit withholding based on accumulated payments. When you work with small contributors, you might have a zero-rate tax rate area assigned to the invoice, and you have not tracked the accumulated payment amounts.
To enable the system to calculate the profit withholding for small contributors assigned a zero-rate tax rate area, and without considering accumulated payment amounts, you must complete this additional setup for the small contributor on the Withholding Percentages form of the Profit W/H - Percentages program (P760403A):
Enter 1 in the Miscellaneous Code 1 field.
Enter a withholding percentage in the Registered % field.
Enter 0 (zero) in the Minimum Amount field to use for invoices for goods.
The AFIP's general resolution RG 3726 states that companies that are withholding agents must report profit withholdings for foreign beneficiaries in a text file in a format that is specified by the AFIP. To submit the profit withholdings to AFIP in the electronic format, you must define additional profit withholdings information in the Additional Profit Withholding Maintenance program (P76A0403). You must relate the additional withholdings information to the profit withholding concept related to the paid voucher regardless of whether the voucher included in the payment is subject to withholdings.
Use the Additional Profit Withholding Maintenance program (P76A0403) to define the following fields:
No Withholding Reason: If the payment processed for foreign beneficiaries has no profit withholdings, the companies must provide a reason for not reporting profit withholdings.
CDI Applicable: The companies must specify whether CDI is applicable to the profit withholdings.
Rate Code: If CDI is not applicable to the profit withholdings, companies must specify a legal code to identify the rate without CDI.
Rate Code With CDI: If CDI is applicable to the profit withholdings, companies must specify a legal code to identify the rate with CDI.
When a supplier is a UTE member, profit withholding is calculated individually for each member of the UTE and withholding certificates are printed for each member. You specify the participation percentage for each member of the UTE.
If any member of the UTE is a direct supplier of the company, payments to that supplier are included in the profit withholding calculation when payments are made to the UTE.
You can add, change, or delete UTE members if no payment has been made to that UTE or if a payment has been made and has been voided. If any payments have been made to the UTE or any vouchers have been included in payment groups that have not yet been updated, no changes can be made to the UTE membership.
The UTE must be set up as a supplier in the JD Edwards EnterpriseOne Address Book system and must be identified as a UTE by a category code. You can use any category code and any value in that category code. You specify the category code that you are using in the RG 830/00 processing options of the PO - PCG process - ARG 04 program (P76A570). You must also set up UTE members as suppliers in the JD Edwards EnterpriseOne Address Book system, but you do not need to identify them using a category code.
Access the Profit Withholding Percentage Revision form.
When you set up the concept for copyright withholdings using the Profit W/H - Percentages program (P760403A), enter 2 in the Misc Code (miscellaneous code) field and, because the withholdings for suppliers registered in the profits category depend on the scale that is specified in Attachment VIII of the Resolution, enter Y in the Profit Wh Category (profit withholding category) field.
Enter a value that exists in the ARG-Profit WH Concept (76/04) UDC table.
Enter a value that exists in the ARG-Profit Legal Concept (76/L3) UDC table.
Enter the generic percentage used in Argentinean localization that specifies the withholding exception percentage on taxes. The maximum valid amount is 999,99.
Enter the nonregistered corporate percentage. The maximum valid amount is 999,99.
Enter the nonregistered individual percentage. The maximum valid amount is 999,99.
Enter the minimum amount for withholding. The calculated withholding amount must be greater than this minimum amount to take effect.
Enter Y to use the profit withholding calculation for fourth category percentages. Enter N to use the profit withholding calculation algorithm for normal concept percentages.
Enter the minimum withholding amount for nonregistered companies or vendors. This amount is optional and used to calculate profit withholding.
Access the Add Profit Withholding Percentage, 4th Category Concepts form.
Set up the appropriate scale of withholdings for those suppliers that are registered in the tax category.
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Note: In the case of unregistered suppliers, the system uses the percentage set up in the Profit W/H - Percentages program (P760403A). |
Enter the generic percentage that specifies the withholding exception percentage on taxes. The maximum valid amount is 999,99.
Enter the date when a transaction, contract, obligation, preference, or policy rule ceases to be in effect.
Access the Add UTE members form.
Enter the address book number of the UTE or UTE member. The UTE and UTE members must be set up as suppliers in the JD Edwards EnterpriseOne Address Book system. The UTE must be identified as a UTE by a category code. UTE members do not need to be identified by a category code.
Enter the participation percentage of each member of the UTE. The sum of the participation percentages of all members must be 100.
Access the Additional Profit Withholding Revision form.
Enter the company for which you want to set up additional profit withholdings information. This field is required.
Enter a value that exists in the ARG-Profit WH Concept (76/04) UDC table to specify the concept of the profit. This field is required.
Enter a value that indicates whether withholdings are applicable or not. Values are:
0: No
1: Yes
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Note: If you enter 1 in this field, you must enter a value in the No Withholding Reason field. |
Enter a reason for not reporting profit withholdings, if you entered 1 in the No Withholding field.
Enter a value that indicates whether CDI is applicable to the withholdings. Values are:
0: No
1: Yes
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Note: If you enter 0, you must enter a value in the Rate Code field. If you enter 1, you must enter a value in the Rate Code With CDI field. |
Enter a value that exists in the Aliquot Without CDI (76A/WD) UDC table to specify the rate without CDI, if you entered 0 in the CDI Applicable field.
Enter a value that exists in the Aliquot With CDI (76A/WC) UDC table to specify the rate with CDI, if you entered 1 in the CDI Applicable field.
This section provides an overview of VAT and profit withholding legal numbers and discusses how to:
Set up certificate next numbers.
Set up company relationships.
As stipulated in article 21 of R.G. 738/99, numbering of VAT and profit withholding certificates that is performed by significant taxpayers must match the AFIP numbering when withholdings are recorded.
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Note: One day before this regulation became effective, RG 814 was published in the Official Bulletin dated 03/30/00, making the use of this numbering optional. |
The format of this new numbering consists of five digits for the issue place, four digits for the date, and six digits for the withholding number.
This numbering does not replace the numbering set up in the Next Numbers program (P0002); it only complements it. For this reason, both tables must be maintained.
If several companies are set up in your system but you want to base certificate next numbers on only one of them, you must set up company relationships. For example, if you set up company 00028 with company 00001 as its hub company, the next numbering is based on company 00001. In this example, you would set up company 00001 with company 00028 as a related company.
You set up company relationships for document types $I (VAT withholdings) and $G (profit withholdings) so that the system obtains the certificate next numbers from the related company's next numbers for those types of withholdings.
If you number the VAT and profit withholdings of one company by using the numbering of another company, you do not need to set up next numbers for the first company in the Certificate Next Number RG 738 (A/P) program (P76A8080).
Access the Edit Certificate Next Number RG 738/99 form.
Enter the code for the issuing location of the invoice or shipment note.
Enter the four-digit fiscal year designation. You must always use the year in which the first period ends. For example, a fiscal year beginning October 1, 1998, and ending September 30, 1999, is fiscal year 1998.
Enter the number that the system will assign next. You must use the next number types already established unless you provide custom programming.
This section provides an overview of VAT withholdings by RG 726 or RG 615 and discusses how to set up VAT withholdings by RG 726 or RG 615.
You can specify the withholding percentage to be used based on the supplier's classification (2 or 4) and the regulation in question (RG 726 or RG 615).
This VAT percentage table does not replace the VAT percentage set up for RG 18. Rather, this table complements the other. Both tables must be maintained.
When you follow RG 615 requirements for processing, you must also specify the substitute percentage to be applied to classification 1 if the total amount of the invoice is equal to or less than the minimum amount that is specified.
If the total amount of the invoice is greater than the minimum amount specified or if RG 726 is followed for suppliers for a classification of 1, the system uses the VAT withholding percentage set up in the V.A.T. WH - Percentages program (P760402A).
Access the V.A.T. Withholding Percentage RG 726 form.
Enter the VAT withholding concept.
Enter the type of supplier, classified according to the information provided by the AFIP each month on the internet. This classification corresponds with the supplier types specified in RG 726 and RG 615. Values are stored in UDC 76A/A4.
This section provides an overview of VAT withholdings by RG 3164 and list prerequisites to work with RG 3164 withholding.
In Argentina, legal resolution RG 3164/2011 introduced by the AFIP (Administración Federal de Ingresos Públicos) created a new VAT concept. Companies must withhold VAT taxes from payments to suppliers who meet the following conditions:
Have monthly accumulated transactions greater than ARS 8000.
Provide any of the following services:
Cleaning services
Security or investigation services
Collection of household waste services
Before working with RG 3164 withholding, verify that the following items are configured:
Company and supplier information.
AAIs to account for VAT withholdings.
Next numbers for withholding taxes.
Next numbers for VAT withholding certificates.
Values for VAT RG3164 in the tax codes regional (70/TX) and Argentina (76A/TX) UDC tables.
Withholding types and percentages for the company. Verify that the following types are defined in the Work With VAT Withholding Percentages program (P760402A):
Security services.
Cleaning services.
Household waste collection services.
Supplier tax information for RG 726 in the Work With AFIP Information program (P76A8011).
Withholding exempt percentages, if any, in the Work With Withholding Exempt Percentage program (P760426A).
Also, to work with RG 3164, for each supplier you must enter 3 in the Export field in the Work With V.A.T. Withholding Percentage RG 726 program (P76A8090).