Profit Withholdings For Foreign Beneficiaries

The AFIP's general resolution RG 3726 states that companies that are withholding agents must report profit withholdings for foreign beneficiaries in a text file in a format that is specified by the AFIP. To submit the profit withholdings to AFIP in the electronic format, you must define additional profit withholdings information in the Additional Profit Withholding Maintenance program (P76A0403). You must relate the additional withholdings information to the profit withholding concept related to the paid voucher regardless of whether the voucher included in the payment is subject to withholdings.

Use the Additional Profit Withholding Maintenance program (P76A0403) to define the following fields:

• No Withholding Reason: If the payment processed for foreign beneficiaries has no profit withholdings, the companies must provide a reason for not reporting profit withholdings.

• CDI Applicable: The companies must specify whether CDI is applicable to the profit withholdings.

• Rate Code: If CDI is not applicable to the profit withholdings, companies must specify a legal code to identify the rate without CDI.

• Rate Code With CDI: If CDI is applicable to the profit withholdings, companies must specify a legal code to identify the rate with CDI.