Notes About Withholding Taxes

Other notes about the ISLR Withholding Calculation and IM Withholding Calculation programs:

• If the invoice has VAT, the amount for the withholding calculation is the amount of the invoice without tax.

• If the withholding is for the total amount to be paid by the supplier, the program calculates the amount that is subject to withholding by adding all of the vouchers with the payment status that is indicated in the processing option and with the same withholding code and currency, without considering any other field selection value.

  Therefore, the Payment Status field is the key field to determine whether a document must be considered for the withholding calculation.

• For the invoices that are entered in a foreign currency, the system uses the amount in the foreign currency as the basis for the withholding calculation.

  The system calculates the amount in the local currency according to the exchange rate that is in effect for the date that appears in the processing option, unless the processing option item for the exchange rate is active. If the exchange rate is active, the system uses the exchange rate that was in effect when the invoice was entered.

• The withholding document is created with the same GL offset account to which the withholding is being applied.

  In the event that there are several accounts payable transactions, the withholding calculation must be made by GL offset.

• When creating each withholding document, the system updates the Withholding Historical File - VEN table (F76V4581).