1. Localizations for Italy Implementation Guide
  2. Setting Up Withholding Tax Codes

Setting Up Withholding Tax Codes

Access the Withholding Tax Codes Revision - Italy form.

Withholding Tax Code

When you enter a new tax code, the system stores the tax code in the F74405 table. You use the Withholding Tax Code field to enter a new tax code or to revise a tax code that exists in the F74405 table to define the withholding tax rate. The system uses this information to calculate withholding tax when you enter supplier vouchers for suppliers that are subject to withholding tax.

When you set up this internal withholding tax code, you establish links between:

  • The withholding tax percentage.

  • The percentage of the base amount that is subject to withholding tax.

  • The type of withholding tax.

  • The user-defined codes for Model 770 reporting.

  • The withholding tax fiscal codes.

W/T Code - Fiscal (withholding tax code - fiscal)

Enter a code from the Withholding Tax Fiscal Code UDC table (74/WF) that is assigned by the government for printing on official forms.

Basis Percentage

Enter the percentage of the base invoice or voucher amount that is subject to withholding tax.

Withholding Tax Percentage Italy

Enter the withholding tax percent or rate. You can enter a percentage with value of up to three decimals.

Section of 770 Form

Enter a code from the Section of 770 Form (74/RA) UDC table.

Withholding Type

Enter a code from the Withholding Type (74/WT) UDC table that specifies the type of withholding tax. The system uses the withholding type to distinguish between different types of withholding tax for reporting and processing purposes.

In Italy, there are different types of withholding tax on supplier's vouchers, such as standard withholding and INPS withholding. You link a withholding type to each internal withholding tax code that you define on the Withholding Tax Codes - Italy program (P740405).

You must complete this field when you define a new withholding tax code.

Include in Balance

Enter whether to bypass the balance control when you enter a code for INPS withholding tax on the Withholding Tax Codes Revision form (W740405B).

The balance control calculation for withholding tax entries is: gross amount (the amount not subject to withholding tax) plus the amount subject to withholding tax, plus the VAT amount.

Values are:

0: Amount excluded from balance

1: Amount included in balance