Understanding IGV Withholding Calculations for Peru

When you run the Create Payment Control Groups (R04570) program, the system calculates IGV withholding taxes when tax lines exist for the voucher being paid.

When calculating IGV withholding, the system:

• Bases the taxable amount calculation on the net amount of all vouchers for the payment that exceeds the minimum taxable amount specified for the supplier in the Withholding Percentage (P76P405) program.

• Determines the minimum amount based on the total of the vouchers when the original document was paid, but calculates the withholding based on only the original document (for related credit or debit memo vouchers).

If the original document for a credit or debit memo was not paid, you must include both vouchers in the payment. If both vouchers are included in the payment, the system determines the minimum amount for the taxable amount calculation on both vouchers. The withholding calculation is made for both vouchers.