1. Localizations for Venezuela Implementation Guide
  2. Calculating National Withholding

Calculating National Withholding

Run the ISLR Withholding Calculation program (R76V4580A) to calculate the withholding of Venezuelan income taxes (Impuesto sobre la Renta [ISLR]). The system calculates the withholding according to the fee code that you assign to the supplier.

When the fee code for a suppler is 1, the system calculates the withholding amount based on the calculated base amount of a single transaction. When the fee code is 1, the system:

  1. Converts the voucher's gross amount to tributary units by multiplying the gross amount of the voucher by the tributary unit.

  2. Uses the result of Step 1 to retrieve the base percentage, withholding percentage, and withholding factor from the F76V4020 table.

    The system searches for the line for the supplier that has a minimum amount that is less than the result and a maximum amount that is greater than the result, and retrieves the withholding percentage and withholding factor for that line.

    For example, if the gross amount of the voucher is 7000 and the tributary unit is 37.632, the result is 186. The system accesses the line in the F76V4020 table that includes 186 between the minimum and maximum amounts, and uses the base percent, withholding percent, and withholding factor for that line.

  3. Multiplies the gross amount of the voucher by the base percentage to obtain the base amount.

  4. Uses this formula to calculate the tax amount:

    (base amount × withholding percentage) − (withholding factor × tributary unit)

    For example, if the base amount is 7000, the withholding percentage is 22 percent, the withholding factor is 14, and the tributary amount is 37.632, the system performs this calculation: (7000 × .22) − (14 × 37.632) = 1013.15

  5. Updates the Withholdings Historical table (F76V4581) with the new amount.

When the fee code is 2, the system calculates the withholding amount based on accumulated base and withholding amounts. When your supplier is set up to use fee code 2, the system accesses the I.S.L.R. Fee Code 2 File (F76V4583), F76V410, and F76V4020 tables to get the data used for calculating withholding.

When the fee code is 2, the system:

  1. Retrieves data from the historical and setup tables, using the voucher's gross amount converted to tributary units:

    • Retrieves the accumulated base and withholding amounts from the F76V4583 table.

    • Retrieves the base percentage, withholding percentage, and withholding factor from the F76V4020 table.

    • Retrieves the tributary unit from the F76V410 table.

  2. Applies the base percentage to the gross voucher amount to calculate the base amount for the voucher.

  3. Adds the base amount for the voucher to the accumulated base amount from the F76V4583 table.

  4. Multiplies the new accumulated base amount (accumulated base amount from the F76V4583 table and the base amount from the voucher) by the tributary unit.

  5. Uses the result of the calculation in Step 4 to determine the line in the F76V4020 table from which to obtain the withholding percentage and withholding factor.

    The system searches for the line for the supplier that has a minimum amount that is less than the result and a maximum amount that is greater than the result, and retrieves the withholding percentage and withholding factor for that line.

  6. Uses this formula to calculate the tax amount:

    (accumulated base amount × withholding percentage) − (withholding factor × tributary unit) − accumulated withholding amount

    For example, if the accumulated base amount is 7000, the accumulated withholding amount is 500, the withholding percentage is 22 percent, the withholding factor is 14, and the tributary amount is 37.632, the system performs this calculation: (7000 × .22) − (14 × 37.632) − 500 = 513.15

  7. Updates the F76V4581 and F76V4583 tables with the new accumulated amounts.