Withholding Tax Certificates and Exceptions
Withholding tax certificates specify withholding tax rate exceptions that are granted by a tax authority. You can define withholding tax rate exceptions for all invoices of a supplier site or for specific invoices of that site. A tax can have one or more certificates.
Before defining withholding tax certificates and exceptions, you must:
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Enable the Apply Withholding option.
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Create withholding tax codes.
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Enter withholding details for suppliers.
Certificates
To define a withholding certificate, you must specify a certificate number, type, priority, and rate for a tax regime and tax.
A certificate number can be user-defined or it can be a number assigned to a certificate issued to a supplier by the tax authority.
Oracle Fusion Payables predefines a certificate type of Standard. You can define additional certificate types on the Manage Tax Lookup Codes page.
Only one certificate can be enforced at a time. If you have one or more certificates for the same tax regime and tax and the date ranges overlap, Oracle Fusion Tax applies the certificate with the highest priority, where 1 is the highest priority. If a certificate specifies that the supplier site is exempt from the tax regime and tax, then enter 0 as the tax rate.
Exceptions
To define an exception for an invoice, specify the invoice number and rate for a tax regime and tax.