Understanding Withholding for General SUSS Services

The statutory regulation 1784/04 requires that companies withhold general SUSS taxes when the supplier is an employer and is a registered VAT contributor. SUSS taxes are withheld when the calculated withholding on a payment exceeds the threshold that is set by the government. For example, if the threshold on a payment is 40 pesos, and the amount of the calculated tax is 50 pesos, the 50 pesos are withheld. If the calculated tax is 30 pesos, the tax will not be withheld because it is less than the 40 peso amount that is established as the minimum tax due.

The regulation does not require companies to withhold taxes when payments for general SUSS services is made in a nonmonetary format. For example, if the supplier receives goods in exchange for SUSS services, no withholding taxes are calculated on the value of the goods received.

The system calculates the withholding tax by subtracting the VAT and discount amounts from the gross amount. If the accumulated adjusted taxable amount for a month exceeds the threshold, the system applies the tax.

When you use automatic payment processing to update payments, the system runs the General SUSS Withholding Certificate program (R760458A) to issue a draft withholding certificate to each supplier for each payment for which you withhold taxes for general SUSS services. The fiscal authorities generate the legal certificate when you submit the information using the government-provided application SIRE.

Use the General SUSS Withholding Certificate program to reprint the draft certificate as necessary.