Understanding Setup for Tax Rates and Effective Dates for Services by City

Because you retain a portion of a supplier's payment to send to the city's fiscal authority, you must set up the rates at which you retain the withholding tax. After you set up the city codes and service codes, you use the Taxes Setup by City & Service program (P76B409) to set up the retention rates and effective dates for a city and service combination. The system validates that the dates for a city/service combination do not overlap with another record for which the combination exists. The system saves the data that you enter to the Taxes Setup by City and Service table (F76B409).

Note: The system saves a value of R (retention) to the F76B409 table to indicate the type of tax calculation for the record that you set up.

The system uses the retention rates that you set up when you run the Tax Calculation ISS, INSS, FUNRURAL program (R76B4310) to calculate ISS taxes.