Create Withholding Taxes

The Withholding Tax reporting feature for Israel empowers you to track and report withholding amounts accurately.

Here are the steps for creating new withholding taxes:

1. Go to the Setup and Maintenance section in the Navigator.
2. Locate and select the Manage Taxes task.
3. Open the Manage Taxes UI.
4. Choose the Withholding Tax option and click on the Create icon to add a new tax.
5. Enter the necessary details for the withholding tax, but do not enable the tax yet.
6. Save the tax and configure the default tax rules. If you don't specify different rules, the default values will be applied when the tax is applicable.
7. Activate the Tax Jurisdiction type by selecting the Tax Jurisdiction row in the Indirect Defaults section. Then, click on the Create Default button.
8. On the Create Withholding Tax Jurisdiction page, enter the details for the tax jurisdiction. Save and close the page.
9. Activate the Tax Status type and click on the Create Default button.
10. On the Create Withholding Tax Status page, enter the details for the tax status. Save and close the page.
11. Activate the Tax Rate type and click on the Create Default button. This will open the Create Withholding Tax Rate page. Enter the details for the tax rate and assign the corresponding ledger and account information. Save and close the page.
12. You have now defined your tax defaults. Navigate to the Tax Authorities tab and assign the tax authority and site to the withholding tax.
13. Save the tax and enable it for transaction entry by selecting the Enable tax for transactions checkbox.
14. Save your changes and close the page.

Note: Please note that this is just a possible setup for withholding tax and tax rules. Make sure you set up the withholding tax according to current tax legislation.