1. Localizations for Argentina Implementation Guide
  2. Example: Withholding Calculations

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:

The system updates these values in the F76A0456 table: (5000 + 9000) × tax rate (6 percent for this example)= 840 tax.

  • 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