1. Localizations for Argentina Implementation Guide
  2. Profit Withholding Calculations for UTEs

Profit Withholding Calculations for UTEs

When a voucher for a UTE member is selected for payment, the system uses these values to calculate profit withholding:

  • A: Previous payments made to the UTE for the same concept, company, month, and year.

  • B: Previous profit withholdings done for the UTE for the same concept, company, month, and year.

  • C: UTE members and their participation percentages.

  • D: Previous payments made to each UTE member for the same concept, company, month, and year.

  • E: Previous profit withholdings done for each UTE member for the same concept, company, month, and year.

  • F: Profit withholding exemption percentages for each UTE member.

For each UTE member, profit withholding is calculated as follows: (Calculation Base) = ((A + (Current Payment Amount))× (Member Participation Percentage)) + D – (Minimum Taxable Amount) (Previous Withholdings Done) = (B × (Member Participation Percentage)) + E (Withholding Amount) = ((Calculation Base) × (Withholding Percentage) × F) – (Previous Withholdings Done)

For example, suppose that UTE A has the following members:

Supplier

Member Participation Percentage

10

40

20

60

When a voucher for UTE A is selected for payment, the system uses these values to calculate profit withholdings:

  • a: Previous payment amounts for UTE A.

  • b: Previous withholding amounts for UTE A.

  • c: Previous payment amounts for supplier 10.

  • d: Previous withholding amounts for supplier 10.

  • e: Previous payment amounts for supplier 20.

  • f: Previous withholding amounts for supplier 20.

  • g: The profit withholding exemption percentage for supplier 10.

  • h: The profit withholding exemption percentage for supplier 20.

Using these values, the system calculates profit withholding amounts for supplier 10 as shown: (((a × 40%) + ((Current UTE Voucher Amount) ×40%) + c – (Minimum Taxable Amount)) × (Withholding Percentage)× g) – (b × 40%) – d

The system also calculates profit withholding amounts for supplier 20 as shown: (((a × 60%) + ((Current UTE Voucher Amount) ×60%) + e – (Minimum Taxable Amount)) × (Withholding Percentage)× h) – (b * 60%) - f