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
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.
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.
Set 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.
This section provides an overview of withholding for security services and discusses how to generate the security services withholding certificate.
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:
Address Book |
Taxable Amount (data item ATXA) |
Withholding Amount (data item AG1) |
A |
10000 |
NA |
10 |
0 |
100 |
20 |
0 |
100 |
30 |
0 |
100 |
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 Name |
FormID |
Navigation |
Usage |
W04571A |
Payment Processing (G0413), Work With Payment Groups Select Update from the Row menu. |
Generate the Security Services Withholding certificate when you update the payment group. |
This section provides an overview of withholding for general SUSS taxes and discusses how to:
Generate the general SUSS services withholding certificate.
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).
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:
Record Name |
Description |
Position |
Withholding Legal Concept |
The AFIP legal code. |
01–03 |
Fiscal ID of Supplier |
The CUIT of the supplier. |
04–14 |
Excess Amount |
The adjustment amount of an amount already withheld. |
15–25 |
Withholding Date |
The date that the tax was withheld. |
26–35 |
Withholding Amount |
The amount that was withheld. |
36–46 |
Legal Certificate Amount |
The legal number of the document for the withholding. |
47–60 |
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 Name |
FormID |
Navigation |
Usage |
Work With Payment Groups |
W04571A |
Select Automatic Payment Processing (G0413), Work With Payment Groups Select Update from the Row menu. |
Generate the general SUSS withholding certificate when you update the payment group. |
Access the Work With Payment Groups form. Select a payment and select Update from the Row menu.
Select Monthly Records (G76A121), TXT File - SUSS and Contract WH Withholding (R76A4002).
Processing options enable you to specify the default processing for programs and reports.
Process
Date From |
Enter the beginning of the date range of the records processed. |
Date To |
Enter the end of the date range of the records processed. |
Process Mode |
Enter 1 to generate the flat file in final mode and update the F76A50 table. |
Select Monthly Records (G76A121), Withholdings Ledger.
Select Version ZJDE0009 to process records for SUSS withholdings.
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
Date From |
Enter the beginning of the date range of the records processed. |
Date To |
Enter the end of the date range of the records processed. |
Process Setup
Flag Process |
Enter 1 to print the last period. Leave this processing option blank to process actual accounting periods. |
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).
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.
Select General Resolution 726 (G76A726), Generate CUIT Information for AFIP.
Processing options enable you to specify the default processing for programs and reports.
General
Month |
Enter the month for which you process records. |
Year (4 digits) |
Enter the year for which you process records. |
Company Fiscal ID |
Enter the identification code that is required by various tax authorities. This can be a social security number, federal or state corporate tax ID, sales tax number, and so on. The system verifies the number and prints the separators in their correct format, according to the value of TAXC (Person/Corporation Code). If no value exists for TAXC, the system uses the corporate entity. |
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.
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.
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.
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.
Nombre de Archivo |
Enter the name of the flat file. This includes the directory path where the flat file exists. |
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). |
This section provides an overview of withholding correction and discusses how to enter a 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.
Form Name |
FormID |
Navigation |
Usage |
Enter Voucher - Payment Information |
W0411A |
Supplier & Voucher Entry (G0411), Standard Voucher Entry Click Add on the Supplier Ledger Inquiry form. |
Enter voucher information for the correction. |
W760411AD |
Click OK on the Enter Voucher - Payment Information form. |
Enter additional information for the correction. On the General tab, complete the following fields: AFIP Transaction Document Type Invoice Group Voucher Pages On the Withholdings tab, enter the withholding concept that is needed to report correctly in the SICORE report, specifying No Withholdings in all other withholding code fields. |
|
G/L Distribution |
W0411K |
Click OK on the Voucher Additional Information - Revision form. |
Enter the withholding amount to be deposited. |
Rectification |
W760411AD |
Additional Features - Set up (G76A116), F0411 Tag File Maintenance - A On the Work With Voucher Additional Information form, select Rectification from the Row menu. |
Enter the document number and suffix from the original voucher. |
Access the Voucher Additional Information - Revision form.
Tax Ex (tax explanation) |
Enter a code that exists in the Tax Explanation Codes UDC table (00/EX) to identify the algorithm that the system uses to calculate tax and GL distribution amounts. The system uses the tax explanation code in conjunction with the tax rate area and tax rules to determine how the tax is calculated. Each transaction pay item can be defined with a different tax explanation code. |
Tax Rate/Area |
Enter the code that identifies a tax or geographic area that has common tax rates and tax authorities. The system validates the code that you enter against the F4008 table. The system uses the tax rate area in conjunction with the tax explanation code and tax rules to calculate tax and GL distribution amounts when you create an invoice or voucher. Enter a tax explanation code of E and the tax area for nontaxable concepts. |
AFIP Transaction Document Type |
Enter the legal document type that is given by DGI (Direccion General Impositiv) for documents. |
Voucher Pages |
Specify the number of pages allowed for the voucher. |
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).
You can use any of the following programs to reprint certificates:
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.
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.
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:
Operator |
Left Operand |
Comparison |
Right Operand |
Where |
BC Document Type - Matching (F0414) |
is not equal to |
"PO" |
And |
BC Document Type - Matching (F0414) |
is not equal to |
"PG" |
And |
BC Document Type (F0414) |
is equal to |
"$I" |
And |
BC Document (Voucher, Invoice, and so on.) |
is equal to |
"1235" |
Processing options enable you to specify the default processing for programs and reports.
RG 738/99
RG 738/99 |
Enter the issue place for which you set up the next numbering sequence for the VAT and profit withholding certificates. If you leave this processing option blank, the system does not use the next numbering schemes. |
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).
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.
Select Additional Features - Set up (G76A116), 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.
Processing options enable you to specify the default processing for programs and reports.
Process
Update |
Enter 1 to update records in the F7604 table. |
Select Additional Features - Set up (G76A116), Profit Accumulate Integrity Test-Step II.
Processing options enable you to specify the default processing for programs and reports.
Process
Purge |
Enter 1 to delete records from the F760406A table. |