Withholding Tax Options

Withholding tax options are settings and default values that control how Oracle Fusion Tax processes withholding for a business unit. You can enable your withholding tax options for a specific effective period.

Withholding Tax Options

Set the following withholding tax options on the Manage Tax Reporting and Withholding Tax Options page:

Option	Description
Event Class	Apply withholding tax to standard invoices, including credit and debit memos, or prepayment invoices.
Apply Withholding	Apply withholding if the tax authority requires your company to withhold taxes from suppliers.
Process Transaction Taxes	Calculate withholding tax on transaction tax lines.
Allow Manual Withholding	Create and adjust manual withholding tax lines for your invoices.
Regime Determination Set	Select the template that determines the tax regime to use for all transactions belonging to this event class. The options include WHTSTCC and WHTTAXREGIME.
Calculation Point	Specify the time when withholding tax is applied. The options are Invoice, Payment, or Both. The options available are controlled by the regime determination set.
Tax Invoice Creation Point	Specify the time when a tax authority invoice is generated. The options are dependent on the value in the Calculation Point field: If the calculation point is Invoice, you can select Blank, Invoice, or Payment as the tax invoice creation point. If the calculation point is Payment, you can select Blank or Payment as the tax invoice creation point.
Include Discount	Determine if a deduction of a discount is applied to the taxable basis when the calculation point is Payment. Select: No to always exclude the discount amount from the taxable basis. Yes to always include the discount amount in the taxable basis. Blank for the deduction of a discount to be applied based on the taxable basis formula definition.
Rounding Level	Apply rounding to calculated tax amounts once for each withholding tax rate per invoice or to the calculated withholding tax amount on each invoice line.