Use this list to help you complete the appropriate steps to set up withholding tax for Argentina. For more information about setting up withholding tax in Argentina, see Setting Up Oracle Payables for Withholding Tax.
For Argentine withholding tax, you need to set the options in the Withholding Tax tabbed region in the Payables Options window. For more information see Step 2 Define Payables Options.
Set up a Special Calendar to associate with Income tax period-based tax codes. For more information see Step 11. Define Withholding Tax Codes and Rates. These tables provide an example.
| Name | Type | Periods Per Year | Description |
|---|---|---|---|
| Income Tax 2001 | Withholding Tax | 12 | Calendar for Income tax withholding 2001 |
| Period | Year | Sequence | Start | End | System Name |
|---|---|---|---|---|---|
| 1 | 2001 | 1 | 01-JAN-2001 | 31-JAN-2001 | 1-01 |
| 2 | 2001 | 2 | 01-FEB-2001 | 28-FEB-2001 | 2-01 |
| 3 | 2001 | 3 | 01-MAR-2001 | 31-MAR-2001 | 3-01 |
| 4 | 2001 | 4 | 01-APR-2001 | 30-APR -2001 | 4-01 |
| 5 | 2001 | 5 | 01-MAY-2001 | 31-MAY-2001 | 5-01 |
| 6 | 2001 | 6 | 01-JUN-2001 | 30-JUN-2001 | 6-01 |
| 7 | 2001 | 7 | 01-JUL-2001 | 31-JUL-2001 | 7-01 |
| 8 | 2001 | 8 | 01-AUG-2001 | 31-AUG-2001 | 8-01 |
| 9 | 2001 | 9 | 01-SEP-2001 | 30-SEP-2001 | 9-01 |
| 10 | 2001 | 10 | 01-OCT-2001 | 31-OCT-2001 | 10-01 |
| 11 | 2001 | 11 | 01-NOV-2001 | 30-NOV-2001 | 11-01 |
| 12 | 2001 | 12 | 01-DEC-2001 | 31-DEC-2001 | 12-01 |
Set up all zones as required. For more information see Step 4. Define Zones. This table includes examples of six zones:
| Code | Meaning | Effective Date |
|---|---|---|
| ZONE FEDERAL | Country Zone (for SUSS General WHTX) | 01-DEC-2001 |
| ZONE 1 | Zone 1 | 01-DEC-2001 |
| ZONE 2 | Zone 2 | 01-DEC-2001 |
| ZONE 3 | Zone 3 | 01-DEC-2001 |
| ZONE 4 | Zone 4 | 01-DEC-2001 |
| ZONE 5 | Zone 5 | 01-DEC-2001 |
| ZONE 6 | Zone 6 | 01-DEC-2001 |
Set up all legal transaction categories as required. For more information see Step 14 Define Legal Transaction Categories. This table includes eight examples.
| Code | Meaning | Effective Date |
|---|---|---|
| CI | Cash Invoice | 01-DEC-2001 |
| CM | Credit Memo | 01-DEC-2001 |
| DM | Debit Memo | 01-DEC-2001 |
| IF | Foreign Invoice | 01-DEC-2001 |
| IN | Invoice | 01-DEC-2001 |
| PI | Prepayment Invoice | 01-DEC-2001 |
| OD | Other Documents | 01-DEC-2001 |
| RE | Receipt | 01-DEC-2001 |
Set up all transaction type codes. For more information see Step 17. Define DGI Transaction Types. This table illustrates some examples.
| Transaction Letter | Legal Transaction Category | Transaction Type |
|---|---|---|
| A | Invoice | 01 |
| A | Debit Memo | 02 |
| A | Credit Memo | 03 |
| A | Receipt | 04 |
| A | Cash Invoice | 05 |
| B | Invoice | 06 |
| B | Debit Memo | 07 |
| B | Credit Memo | 08 |
| B | Receipt | 09 |
| B | Cash Invoice | 10 |
| C | Invoice | 11 |
| C | Debit Memo | 12 |
| C | Credit Memo | 13 |
| C | Receipt | 15 |
| C | Cash Invoice (or other specified name) | 16 |
Set up all provinces as required. For more information see Step 3. Define Province Jurisdiction. This table includes examples of nine provinces.
| Province Code | Province Name | Territorial |
|---|---|---|
| BSAS | Buenos Aires | Yes |
| CDBA | Cordoba | No |
| CHUB | Chubut | Yes |
| CHAC | Chaco | Yes |
| CORR | Corrientes | Yes |
| FORM | Formosa | Yes |
| JUJY | Jujuy | No |
| MEND | Mendoza | Yes |
| ERIO | Entre Rios | Yes |
Set up all locations as required. For more information see Step 6. Define Locations. These tables include examples of a primary location and two other locations.
| In this field... | Enter these details... |
|---|---|
| Name | Oracle Argentina - HQ |
| Address Style | Argentina |
| Address Line 1 | Madero 900 Pisa 16 Torre Catal |
| Address Line 2 | |
| Address Line 3 | |
| City | Buenos Aires |
| Postal Code | 1003 |
| Province | Buenos Aires |
| Zone | Zone Federal |
| Site Check Boxes | Check all |
| In this field... | Enter these details... |
|---|---|
| Name | Oracle Argentina - Cordoba |
| Address Style | Argentina |
| Address Line 1 | Dean Funes 1020 |
| Address Line 2 | |
| Address Line 3 | |
| City | Cordoba |
| Postal Code | 1004 |
| Province | Cordoba |
| Zone | Zone 2 |
| Site Check Boxes | Check all |
| In this field... | Enter these details... |
|---|---|
| Name | Oracle Argentina - Chaco |
| Address Style | Argentina |
| Address Line 1 | Reconquista 1020 - Resistencia |
| Address Line 2 | |
| Address Line 3 | |
| City | Chaco |
| Postal Code | 1005 |
| Province | Chaco |
| Zone | Zone 3 |
| Site Check Boxes | Check all |
Set up tax authority categories as required. For more information see Step 5. Define Tax Authority Categories. This table gives examples of 12 categories.
| Code | Meaning | Effective Date |
|---|---|---|
| 248 | VAT Withholding | 01-DEC-2001 |
| 078 | Inc-Goods | 01-DEC-2001 |
| 094 | Inc-Services | 01-DEC-2001 |
| 116 | Inc-Profesiones Liberales and Honorarios | 01-DEC-2001 |
| 027 | Inc-Rent | 01-DEC-2001 |
| 240 | Inc-Petty-Cash | 01-DEC-2001 |
| 167 | Inc-For-General 1 | 01-DEC-2001 |
| 075 | SUSS Engineering | 01-DEC-2001 |
| 076 | SUSS Architecture | 01-DEC-2001 |
| 755 | SUSS Gral Wht Regime | 01-MAR-05 |
| 754 | SUSS Private Security Companies Wht Regime | 01-FEB-05 |
| 001 | TURN BSAS Goods | 01-DEC-2001 |
| 002 | TURN BSAS Services | 01-DEC-2001 |
| 003 | TURN CDBA Goods | 01-DEC-2001 |
| 004 | TURN CDBA Services | 01-DEC-2001 |
Set up tax authority types as required. For more information see Step 8. Define Tax Authority ID Types. This table gives examples of eight types.
| Code | Meaning | Effective Date |
|---|---|---|
| 001 | Province_BSAS | 01-DEC-2001 |
| 002 | Province_CDBA | 01-DEC-2001 |
| 003 | Province_CORR | 01-DEC-2001 |
| 004 | Province_ERIO | 01-DEC-2001 |
| 005 | Province_CHAC | 01-DEC-2001 |
| 006 | Province_FORM | 01-DEC-2001 |
| 007 | Province_MEND | 01-DEC-2001 |
| 008 | Province_JUJY | 01-DEC-2001 |
Create a distinct tax authority supplier for each jurisdiction.
For example: DGI, TA-Buenos Aires.
For more information see Step 7. Define Suppliers.
Set up provincial inscription numbers that apply for each supplier and company. For more information see Step 9. Define Supplier Provincial Inscription Numbers. This table provides some examples.
| Primary ID Number | Entity Name | Name | ID Type | ID Number |
|---|---|---|---|---|
| 20-21831385-0 | ABC1 | TA Buenos Aires | Province_BSAS | 91001 |
| 20-21831385-0 | ABC1 | TA Cordoba | Province_CDBA | 91002 |
| 20-21831385-0 | ABC1 | TA Chaco | Province_CHAC | 91003 |
| 20-21831385-0 | ABC1 | TA Chubut | Province_CHUB | 91004 |
| 20-21831385-0 | ABC1 | TA Jujuy | Province_JUJY | 91005 |
| 20-16855124-0 | SUPP2 | TA Buenos Aires | Province_BSAS | 92001 |
| 20-16855124-0 | SUPP2 | TA Cordoba | Province_CDBA | 92002 |
| 20-16855124-0 | SUPP2 | TA Chaco | Province_CHAC | 92003 |
| 20-16855124-0 | SUPP2 | TA Chubut | Province_CHUB | 92004 |
| 20-16855124-0 | SUPP2 | TA Jujuy | Province_JUJY | 92005 |
| 20-16855124-0 | Oracle Argentina - HQ | TA Buenos Aires | Province_BSAS | 82001 |
| 20-16855124-0 | Oracle Argentina - HQ | TA Cordoba | Province_CDBA | 82002 |
| 20-16855124-0 | Oracle Argentina - HQ | TA Chaco | Province_CHAC | 82003 |
| 20-16855124-0 | Oracle Argentina - HQ | TA Chubut | Province_CHUB | 82004 |
| 20-16855124-0 | Oracle Argentina - HQ | TA Jujuy | Province_JUJY | 82005 |
Set up withholding types for Income tax, VAT, Turnover (for each province that levies tax), and SUSS (for each zone). For more information see Step 10. Define Withholding Tax Types.
The attributes that are illustrated in these tables are intended to largely reflect the actual attributes for each tax type.
| In this field... | Enter this for INC_DOM... | Enter this for INC_FOR... | Enter this for VAT... |
|---|---|---|---|
| Code | INC_DOM | INC_FOR | VAT |
| Description | Income tax withholding Domestic suppliers | Income tax withholding Foreign suppliers | VAT withholding |
| Applicable to Foreign Supplier | No | Yes | No |
| Jurisdiction Type | Federal | Federal | Federal |
| Taxable Amount Basis | Payment | Payment | Invoice |
| Minimum Tax Base Amount Level | Category | Not applicable | Not applicable |
| Minimum Withheld Amount Level | Type | Not applicable | Type |
| Minimum Amount | 50 | 80 | |
| Tax Authority | DGI | DGI | DGI |
| Certificate Header | Income Tax Withholding Certificate | Income Tax Withholding Certificate | VAT Withholding Certificate |
| Province | |||
| Supplier Exemption Level | Type | Not applicable | Type |
| Cumulative Payment Applicable | Yes | No | No |
| Credit Letter Allowed | No | No | No |
| Allow Multilateral Contributions | No | No | No |
| Partial Payment Paid in Full | No | No | Yes |
| Tax Inclusive | No | No | Yes |
| In this field... | Enter this for TURN_BSAS... | Enter this for TURN_CDBA... | Enter this for SUSS Zone 1 withholding... |
|---|---|---|---|
| Code | TURN_BSAS | TURN_CDBA | SUSS_ZONE1 |
| Description | Turnover tax - Buenos Aires | Turnover tax - Cordoba | SUSS Zone 1 withholding |
| App. Foreign Supplier | No | No | No |
| Jurisdiction Type | Provincial | Provincial | Federal |
| Taxable Amount Basis | Payment | Payment | Payment |
| Minimum Tax Base Amount Level | Category | Not applicable | Not applicable |
| Minimum Withheld Amount Level | Category | Not applicable | Not applicable |
| Minimum Amount | |||
| Tax Authority | TA Buenos Aires | TA Cordoba | DGI |
| Certificate Header | Buenos Aires Turnover Tax Withholding Certificate | Cordoba Turnover Tax Withholding Certificate | SUSS Zone 1 Withholding Certificate |
| Province | Buenos Aires | Cordoba | |
| Supplier Exemption Level | Category | Type | Not applicable |
| Cumulative Payment Applicable | No | No | No |
| Credit Letter Allowed | No | No | No |
| Allow Multilateral Contributions | Yes | Yes | No |
| Partial Payment Paid in Full | No | No | No |
| Tax Inclusive | No | No | No |
| In this field... | Enter this for SUSS Zone 2 withholding... | Enter this for SUSS General withholding... | Enter this for SUSS Private Security Companies withholding... |
|---|---|---|---|
| Code | SUSS_ZONE2 | SUSS_GRAL | SUSS_SEC |
| Description | SUSS Zone 2 withholding | SUSS General Withholding Regime | SUSS - Private Security Companies Withholding Regime |
| App. Foreign Supplier | No | No | No |
| Jurisdiction Type | Federal | Zonal | Zonal |
| Taxable Amount Basis | Payment | Invoice | Payment |
| Minimum Tax Base Amount Level | Not applicable | Not applicable | Category |
| Minimum Withheld Amount Level | Not applicable | Type | Type |
| Minimum Amount | 40 | ||
| Tax Authority | DGI | DGI | DGI |
| Certificate Header | SUSS Zone 2 Withholding Certificate | SUSS - General Withholding Regime Certificate | SUSS - Private Security Companies Withholding Regime |
| Province | |||
| Supplier Exemption Level | Not applicable | Type | Type |
| Cumulative Payment Applicable | No | No | Yes |
| Credit Letter Allowed | No | No | No |
| Allow Multilateral Contributions | No | No | No |
| Partial Payment Paid in Full | No | Yes | No |
| Tax Inclusive | No | No | No |
You must set up withholding tax codes for the nine tax types. For more information see Step 11. Define Withholding Tax Codes and Rates.
The attributes that are illustrated in these tables are intended to largely reflect the actual attributes for each tax code. The Income tax Profesiones tax codes normally have a range table with different rates and also an amount to add and subtract for each range.
| Withholding Tax Code | Description | Period Basis | Rate |
|---|---|---|---|
| INC_DOM_GOOD_R | Income - Goods - Registered | Period | 6 |
| INC_DOM_GOOD_N | Income - Goods - Non Registered | Period | 15 |
| INC_DOM_PL_R | Income - Profesiones - Registered | Period | 10 |
| INC_DOM_PL_N | Income - Profesiones - Non Registered | Period | 12 |
| INC_DOM_PC_R | Income - Petty Cash - Registered | Invoice | 6 |
| INC_DOM_PC_N | Income - Petty Cash - Non Registered | Invoice | 10 |
| INC_FOR_GEN1 | Income - General 1 - Foreign | Invoice | 15 |
| INC_FOR_GEN2 | Income - General 2 - Foreign | Invoice | 16 |
| VAT_GOOD_21 | VAT - Goods - 21% | Invoice | 21 |
| VAT_SERV_27 | VAT - Services - 27% | Invoice | 27 |
| TURN_BSAS_GOOD | Turnover - BSAS - Goods | Invoice | 5 |
| TURN_BSAS_SERV | Turnover - BSAS - Services | Invoice | 10 |
| TURN_CDBA_GOOD | Turnover - CDBA - Goods | Invoice | 4 |
| TURN_CDBA_SERV | Turnover - CDBA - Services | Invoice | 5 |
| SUSS_ZONE1_ENG | SUSS - Zone 1 - Engineering | Invoice | 5 |
| SUSS_ZONE1_ARCH | SUSS - Zone 1 - Architecture | Invoice | 3 |
| SUSS_ZONE2_ENG | SUSS - Zone 2 - Engineering | Invoice | 4 |
| SUSS_ZONE2_ARCH | SUSS - Zone 2 - Architecture | Invoice | 2 |
| SUSS_ZONE1_GEN1 | SUSS - Zone 1 - General 1 | Invoice | 1 |
| SUSS_ZONE2_GEN1 | SUSS - Zone 2 - General 1 | Invoice | 2 |
| SUSSGRAL | SUSS-zonefederal-General | Invoice | 2 |
| SUSSPSC | SUSS-zonefederal-Private Security Companies | Period | 6 |
| In this field... | Enter this for INC_DOM_GOOD_R... | Enter this for INC_DOM_GOOD_N... | Enter this for INC_DOM_PL_R... | Enter this for SUSSGRAL... |
|---|---|---|---|---|
| Withholding Type | INC_DOM | INC_DOM | INC_DOM | SUSS_GRAL |
| Tax Authority Category | Inc-Goods | Inc-Goods | Inc-Profesiones Liberales and Honorarios | SUSS Gral Wht Regime |
| Foreign Rate Indicator | No | No | No | No |
| Zone | Zone Federal | |||
| Item Line Type Applicability | Yes | Yes | Yes | Yes |
| Freight Line Type Applicability | Yes | Yes | Yes | Yes |
| Miscellaneous Line Type Applicability | Yes | Yes | Yes | Yes |
| Tax Line Type Applicability | No | No | No | No |
| Minimum Taxable Base Amount | 11242 | 11242 | 10000 | |
| Minimum Withheld Amount | ||||
| Adjustment Minimum Base | Subtract | Subtract | Subtract | |
| Cumulative Payment Applicable | Yes | Yes | Yes | No |
| Tax Inclusive | No | No | No | No |
| in this field... | Enter this for INC_DOM_PL_N... | Enter this for INC_DOM_PC_R... | Enter this for INC_DOM_PC_N... |
|---|---|---|---|
| Withholding Type | INC_DOM | INC_DOM | INC_DOM |
| Tax Authority Category | Inc-Profesiones Liberales and Honorarios | Inc-Petty-Cash | Inc-Petty-Cash |
| Foreign Rate Indicator | No | No | No |
| Zone | |||
| Item Line Type Applicability | Yes | Yes | Yes |
| Freight Line Type Applicability | Yes | Yes | Yes |
| Miscellaneous Line Type Applicability | Yes | Yes | Yes |
| Tax Line Type Applicability | No | No | No |
| Minimum Tax Base Amount | 8000 | 5000 | 4000 |
| Minimum Withheld Amount | |||
| Adjustment Minimum Base | Subtract | Compare | Compare |
| Cumulative Payment Applicable | Yes | No | No |
| Tax Inclusive | No | No | No |
| In this field... | Enter this for INC_FOR_GEN1... | Enter this for INC_FOR_GEN2... | Enter this for VAT_GOOD_21... |
|---|---|---|---|
| Withholding Type | INC_FOR | INC_FOR | VAT |
| Tax Authority Category | Inc-For-General 1 | Inc-For-General 2 | VAT Withholding |
| Foreign Rate Indicator | Yes | Yes | No |
| Zone | |||
| Item Line Type Applicability | Yes | Yes | Yes |
| Freight Line Type Applicability | Yes | Yes | Yes |
| Miscellaneous Line Type Applicability | Yes | Yes | Yes |
| Tax Line Type Applicability | No | No | No |
| Minimum Tax Base Amount | |||
| Minimum Withheld Amount | |||
| Adjustment Minimum Base | |||
| Cumulative Payment Applicable | No | No | No |
| Tax Inclusive | No | No | Yes |
| In this field... | Enter this for VAT_SERV_27... | Enter this for TURN_BSAS_GOOD... | Enter this for TURN_BSAS_SERV... |
|---|---|---|---|
| Withholding Type | VAT | TURN_BSAS | TURN_BSAS |
| Tax Authority Category | VAT Withholding | TURN BSAS Goods | TURN BSAS Services |
| Foreign Rate Indicator | No | No | No |
| Zone | |||
| Item Line Type Applicability | Yes | Yes | Yes |
| Freight Line Type Applicability | Yes | Yes | Yes |
| Miscellaneous Line Type Applicability | Yes | Yes | Yes |
| Tax Line Type Applicability | No | No | No |
| Minimum Tax Base Amount | 5000 | 5000 | |
| Minimum Withheld Amount | 40 | 40 | |
| Adjustment Minimum Base | Compare | Compare | |
| Cumulative Payment Applicable | No | No | No |
| Tax Inclusive | Yes | No | No |
| In this field... | Enter this for TURN_CDBA_GOOD... | Enter this for TURN_CDBA_SERV... | Enter this for SUSS_ZONE1_ENG... |
|---|---|---|---|
| Withholding Type | TURN_CDBA | TURN_CDBA | SUSS_ZONE1 |
| Tax Authority Category | TURN CDBA Goods | TURN CDBA Services | SUSS Engineering |
| Foreign Rate Indicator | No | No | No |
| Zone | Zone 1 | ||
| Item Line Type Applicability | Yes | Yes | Yes |
| Freight Line Type Applicability | Yes | Yes | Yes |
| Miscellaneous Line Type Applicability | Yes | Yes | Yes |
| Tax Line Type Applicability | No | No | No |
| Minimum Tax Base Amount | |||
| Minimum Withheld Amount | |||
| Adjustment Minimum Base | |||
| Cumulative Payment Applicable | No | No | No |
| Tax Inclusive | No | No | No |
| In this field... | Enter this for SUSS_ZONE1_ARCH... | Enter this for SUSS_ZONE2_ENG... | Enter this for SUSS_ZONE2_ARCH... |
|---|---|---|---|
| Withholding Type | SUSS_ZONE1 | SUSS_ZONE2 | SUSS_ZONE2 |
| Tax Authority Category | SUSS Architecture | SUSS Engineering | SUSS Architecture |
| Foreign Rate Indicator | No | No | No |
| Zone | Zone 1 | Zone 2 | Zone 2 |
| Item Line Type Applicability | Yes | Yes | Yes |
| Freight Line Type Applicability | Yes | Yes | Yes |
| Miscellaneous Line Type Applicability | Yes | Yes | Yes |
| Tax Line Type Applicability | No | No | No |
| Minimum Tax Base Amount | |||
| Minimum Withheld Amount | |||
| Adjustment Minimum Base | |||
| Cumulative Payment Applicable | No | No | No |
| Tax Inclusive | No | No | No |
| In this field... | Enter this for SUSS_ZONE1_GEN1... | Enter this for SUSS_ZONE2_GEN1... | Enter this for SUSS_SEC... |
|---|---|---|---|
| Withholding Type | SUSS_ZONE1 | SUSS_ZONE2 | SUSS_SEC |
| Tax Authority Category | SUSS General 1 | SUSS General 1 | SUSS Private Security Companies Wht Regime |
| Foreign Rate Indicator | No | No | No |
| Zone | Zone 1 | Zone 2 | Zone Federal |
| Item Line Type Applicability | Yes | Yes | Yes |
| Freight Line Type Applicability | Yes | Yes | Yes |
| Miscellaneous Line Type Applicability | Yes | Yes | Yes |
| Tax Line Type Applicability | No | No | No |
| Minimum Tax Base Amount | 8,000 | ||
| Minimum Withheld Amount | |||
| Adjustment Minimum Base | Compare | ||
| Cumulative Payment Applicable | No | No | Yes |
| Tax Inclusive | No | No | No |
Associate all the withholding type codes that the company is a withholding agent for by using the primary location. For more information see Step 12. Define Company Withholding Applicability. In the example in this table the primary location is Oracle Argentina - HQ.
Associate the Provincial Withholding Types to the Tax Authority type that applies.
| Withholding Type Code | Withholding Agent Indicator | Tax Authority Type |
|---|---|---|
| INC_DOM | Yes | |
| INC_FOR | Yes | |
| VAT | Yes | |
| TURN_BSAS | Yes | Province_BSAS |
| TURN_CDBA | Yes | Province_CDBA |
| SUSS_ZONE1 | Yes | |
| SUSS_ZONE2 | Yes | |
| SUSS_ZONE1 | Yes | |
| SUSS_ZONE2 | Yes | |
| SUSS_GRAL | Yes |
Associate the withholding types that each supplier is subject to withholding tax from the buyer for. For more information see Step 13. Define Supplier Withholding Applicability. For the purposes of the example in this table, two suppliers are set up with the following details:
| Supplier Number | Name | Taxpayer ID |
|---|---|---|
| 21831385 | ABC1 | 20-21831385-0 |
| 16855124 | SUPP2 | 20-16855124-0 |
Associate tax types and enter the exemption details in these tables that are applicable to the Type level:
| Withholding Tax Type | ABC1 Subject Indicator | ABC1 Start Date | ABC1 End Date | ABC1 Rate |
|---|---|---|---|---|
| INC_DOM | Yes | 01-JAN-1997 | 01-FEB-2000 | 10 |
| VAT | Yes | 01-JAN-1998 | 01-FEB-2000 | 5 |
| TURN_BSAS | Yes | |||
| TURN_CDBA | Yes | 01-JAN-1998 | 01-JAN-2000 | 10 |
| SUSS_ZONE1 | Yes | |||
| SUSS_ZONE2 | Yes | 01-JAN-1997 | 01-JUN-2000 | 15 |
| Withholding Tax Type | SUPP2 Subject Indicator | SUPP2 Start Date | SUPP2 End Date | SUPP2 Rate |
|---|---|---|---|---|
| INC_DOM | Yes | 01-JAN-1997 | 01-FEB-2000 | 20 |
| VAT | Yes | |||
| TURN_BSAS | Yes | |||
| TURN_CDBA | Yes | 01-JAN-1998 | 01-JAN-1999 | 10 |
| SUSS_ZONE1 | Yes | |||
| SUSS_ZONE2 | Yes |
Enter the Multilateral Exemption details in these tables for the provincial tax types:
| Withholding Tax Type | ABC1 Subject Indicator | ABC1 Start Date | ABC1 End Date | ABC1 Rate |
|---|---|---|---|---|
| TURN_BSAS | Yes | 01-JAN-1997 | 01-FEB-2000 | 60 |
| TURN_CDBA | Yes | 01-JAN-1997 | 01-FEB-2000 | 40 |
| Withholding Tax Type | SUPP2 Subject Indicator | SUPP2 Start Date | SUPP2 End Date | SUPP2 Rate |
|---|---|---|---|---|
| TURN_BSAS | Yes | 01-JAN-1997 | 01-FEB-2000 | 80 |
| TURN_CDBA | Yes | 01-JAN-1997 | 01-FEB-2000 | 20 |
Associate tax codes within each withholding tax type that applies.
Select the primary tax code.
Enter the exemption details that apply to the Category level.
These tables provide examples for the two suppliers.
| Withholding Tax Code | Associate | Primary | Start Date | End Date | Rate |
|---|---|---|---|---|---|
| INC_DOM_GOOD_R | Yes | Yes | |||
| INC_DOM_PL_R | Yes | ||||
| INC_DOM_PC_R | Yes | ||||
| VAT_GOOD_21 | Yes | Yes | |||
| VAT_SERV_27 | Yes | ||||
| TURN_BSAS_GOOD | Yes | Yes | |||
| TURN_BSAS_SERV | Yes | ||||
| TURN_CDBA_GOOD | Yes | Yes | |||
| TURN_CDBA_SERV | Yes | ||||
| SUSS_ZONE1_ENG | Yes | Yes | |||
| SUSS_ZONE1_ARCH | Yes | ||||
| SUSS_ZONE2_ENG | Yes | Yes | |||
| SUSS_ZONE2_ARCH | Yes | ||||
| SUSS_GRAL |
| Withholding Tax Code | Associate | Primary | Start Date | End Date | Rate |
|---|---|---|---|---|---|
| INC_DOM_GOOD_R | Yes | Yes | 01-JAN-98 | 01-JAN-99 | 15 |
| INC_DOM_PL_R | Yes | ||||
| INC_DOM_PC_R | Yes | ||||
| VAT_GOOD_21 | Yes | Yes | |||
| VAT_SERV_27 | Yes | ||||
| TURN_BSAS_GOOD | Yes | Yes | 01-JAN-99 | 01-JAN-00 | 20 |
| TURN_BSAS_SERV | Yes | 01-JAN-99 | 01-JAN-00 | 25 | |
| TURN_CDBA_GOOD | Yes | Yes | |||
| TURN_CDBA_SERV | Yes | ||||
| SUSS_ZONE1_GEN1 | Yes | Yes | |||
| SUSS_ZONE1_GEN2 | Yes |
The example in this table is for supplier ABC1. Assume that invoice 1 is the first invoice of the period for this supplier.
The withholding calculation formulas are based on the withholding type and withholding name attributes. Please refer to Step 11. Define Withholding Tax Codes and Rates for more information.
Item line 1: 10,000
Ship-to location: Oracle Argentina - HQ
VAT_21: 2,100
Total: 12,100
| Invoice Number | Line Number | Default Tax Codes | Final Tax Codes |
|---|---|---|---|
| 1 | 1 | INC_DOM_GOOD_R | INC_DOM_GOOD_R |
| 1 | 1 | VAT_GOOD_21 | VAT_GOOD_21 |
| 1 | 1 | TURN_BSAS_GOOD | TURN_BSAS_GOOD |
| 1 | 1 | TURN_CDBA_GOOD | TURN_CDBA_GOOD |
| 1 | 1 | SUSS_ZONE1_ENG | SUSS_GRAL |
Notes:
The primary tax codes that apply for the supplier are automatically associated with the item distribution line.
The location Oracle Argentina - HQ is associated with the province Buenos Aires and the zone Zone Federal, which results in the primary tax codes being defaulted for this province and zone.
The tax code TURN_CDBA_GOOD is defaulted because this province is classified as a country-wide province and the supplier is set up as being subject to this tax from the company.
The withholding calculations are performed as part of the invoice payment process.
The calculations for this invoice are:
INC_DOM_GOOD_R
Payment taxable base amount for goods equals 10,000. Add this figure to the cumulative month-to-date taxable base amount.
(10,000 + 0)
Compare the cumulative month-to-date taxable base amount to the minimum tax base for the INC_DOM tax type. 10,000 is less than 11,242; there are no withholdings required to be calculated.
The cumulative month-to-date withholdings for this tax code remain at 0.
VAT_GOOD_21
The taxable base amount is 10,000 which is multiplied by the withholding rate for the category. The calculation must take account of the 5% exemption rate for the supplier.
(10,000 * 0.21) * (1 - 0.05) = 1,995
The calculated withholding of 1,995 is compared to the minimum withheld amount for the VAT tax type and because the calculated withholding is greater than 80, withholdings apply. A VAT_GOOD_21 withholding distribution line for 1,995 is created.
TURN_BSAS_GOOD
Multiply the payment taxable base by the multilateral exemption rate before comparing to the minimum taxable base.
10,000 * 60% = 6,000
Compare 6,000 to the minimum taxable base for this tax code. 6,000 is greater than 5,000; withholdings must be calculated.
The calculation is:
6,000 * 5% = 300
The calculated withholdings of 300 is compared to the minimum withheld amount for the tax code and because the calculated withholding is greater than 40, withholdings apply. A TURN_BSAS_GOOD withholding distribution line for 300 is created.
TURN_CDBA_GOOD
Multiply the payment taxable base by the multilateral exemption rate.
10,000 * 40% = 4,000
There is no minimum taxable base for this tax type. The calculation must take account of the 10% exemption rate for the supplier.
(4,000 * 4%) * (1 - 0.10) = 144
There is no minimum withheld amount for this tax code. A TURN_CDBA_GOOD withholding distribution line for 144 is created.
SUSS_GRAL
The taxable base amount is 10,000, which is multiplied by the withholding tax rate for the category. (10,000 x 0.02) = 200
The calculated withholding tax of 200 is compared to the minimum withheld amount for the SUSS_GRAL tax type. Because the calculated amount is greater than 40, withholding tax applies.
After these calculations, the invoice will have the distribution lines shown in this table:
Item 10,000.00
VAT 2,100.00
VAT_GOOD_21 -1,995.00
TURN_BSAS_GOOD -300.00
TURN_CDBA_GOOD -144.00
SUSS_GRAL -200.00
Payment to the supplier ABC1 is 12,100 - 2,639 = 9,461