Small Contributors

For many suppliers, you set up and process profit withholding when a tax rate area is set up for the invoice that you enter for the supplier, and the system calculates profit withholding based on accumulated payments. When you work with small contributors, you might have a zero-rate tax rate area assigned to the invoice, and you have not tracked the accumulated payment amounts.

To enable the system to calculate the profit withholding for small contributors assigned a zero-rate tax rate area, and without considering accumulated payment amounts, you must complete this additional setup for the small contributor on the Withholding Percentages form of the Profit W/H - Percentages program (P760403A):

• Enter 1 in the Miscellaneous Code field.

• Enter a withholding percentage in the Registered % field.

• Enter 0 (zero) in the Minimum Amount field to use for invoices for goods.