Withholding Tax Processing

Withholding taxes are levied on services rendered by persons or companies at the time of recording an invoice, or at the time of making an invoice payment.

This image depicts the workflow for Withholding Tax Processing:

With Oracle ERP Cloud, you can process withholding tax either at invoice validation or invoice payment. The processing is based on the configuration at the Configuration Owner Tax Options level and the Tax level, which control the withholding tax calculation at the invoice or payment event.

• At Configuration Owner Tax Options Level:
  1. Sign in as a Tax Manager.
  2. Click Navigator, Setup and Maintenance.
  3. Search for Manage Configuration Owner Tax Options.
  4. Search for Event Class Processing Controls.
  5. For the Prepayment Invoices and Standard Invoices event classes, set the Calculation Point to Both.

• At Tax Level:
  1. Sign in as a Tax Manager.
  2. Click Navigator, Setup and Maintenance.
  3. Search for Manage Taxes, Controls and Defaults and Calculation Point.
  4. Set the Calculation Point to Invoice or Payment.