Usability Improvements to Withholding Tax Reporting for Spain

You can define additional key and sub key values and assign them to the withholding tax rates. You can use new extracted data elements for customized additional withholding layouts.

You can now define withholding keys and sub keys, and additional extracted data elements.

The Withholding Magnetic Format for Spain report includes the ability to define withholding keys and sub keys and assign them to the withholding tax rates. The keys (sub keys) allowed in the Modelo 190 are A, B (01, 02, 03), C, D, E (01, 02, 03, 04), F (01, 02), G (01, 02, 03), H (01, 02, 03, 04), I (01, 02), J, K (01, 02, 03), L (01 to 30). If withholding keys and sub keys are not defined and assigned to tax rates, expense reports are populated with the default value A00 and all other transactions populated with the default value G01.

The Withholding Magnetic Format for Spain XML Data extract file contains additional data elements:

• Header elements
  • ERP Cloud Program Version - EXTERNAL_VERSION
  • Legal Entity primary contact name, phone and email - G_LEGAL_ENTITY - FULL_NAME, EMAIL_ADDRESS and PHONE_NUM
• Detail records
  • Supplier Type and Tax Organization Type - C_VENDOR_TYPE and C_ORGANIZATION_TYPE

Follow these steps:

1. Implement changes related to the keys and sub keys reported in the Withholding Magnetic Format for Spain output file:
   1. Navigate to the Setup and Maintenance, Manage Tax Reporting Types.
   2. Create new Tax Reporting Type JEES_WHT_KEY_SUBKEY
   3. Add new Tax Reporting Codes:

      Tax Reporting Code: G01

      Description: G: Income from economic activities: Professional activities to which the general withholding rate is applicable: Sub key 01

   4. Define all required Tax Reporting Codes for Spanish withholding keys and sub keys. Example: A01, G03, H04.
   5. Save and Close.
2. Associate Tax Reporting Code JEES_WHT_KEY_SUBKEY to the Withholding Tax Rates Codes:
   1. Navigate to Setup and Maintenance, Manage Tax Rate and Tax Recovery Rates.
   2. Search for Withholding Tax and define Search Withholding Tax Rates parameters or create new Withholding Tax Rate.
   3. Associate Withholding Tax Rate with Tax Reporting Codes with below details:
   4. Save and Close.

   Here are some tips and considerations:

   • The keys and sub keys values are defined as Tax Reporting Code for the Tax Reporting Type Code JEES_WHT_KEY_SUBKEY. The Tax Reporting Code for key and sub key is assigned to the Withholding Tax Rate. In the Withholding Magnetic Format for Spain output file the Key is the first position from the Tax Reporting Code and is reported in the position 78. The sub key is the second and third position from the Tax Reporting Code JEES_WHT_KEY_SUBKEY and is reported in the position 79 and 80.
   • If withholding keys and sub keys are not defined and assigned to tax rates, expense reports are populated with the default value A00 and all other transactions populated with the default value G01.
   • Define primary Legal Entity contact name, primary phone and email, Supplier Type and Tax Organization Type for supplier to extract values in the Withholding Magnetic Format for Spain XML extract data file.