Using Tiered-Based Withholding
To support tiered-based withholding, you set up your withholding rule such that the withholding percentage depends on the basis amount. Just as in a bracketed income tax system, the bigger the amount, the higher the withholding percentage becomes. Here is an example:
|
From Amount (EUR) |
To Amount (EUR) |
Percentage |
Additional Amount (EUR) |
|---|---|---|---|
|
0 |
9,999 |
5% |
0 |
|
10,000 |
19,999 |
6% |
500 |
|
20,000 |
49,999 |
7% |
1100 |
|
50,000 |
99,999 |
8% |
3200 |
|
100,000 |
100,000+ |
9% |
7200 |
If, for example, your transaction amount were 55,000 EUR, you would calculate your withholding in the following manner. Because 55,000 EUR falls into the 50,000–99,999 bracket, you would subtract the amount from the From Amount of that bracket, multiply this by the corresponding percentage, and add the Additional Amount. Here is how it would look:
55,000 EUR − 50,000 EUR (from amount of bracket) = 5000 EUR.
5000 EUR × 8% = 400 EUR.
400 EUR + 3200 EUR = 3600 EUR.
In this case, the withholding on this 55,000 EUR transaction would be 3600 EUR.