How You Set Up Configuration Owner Tax Options for Withholding Taxes

Set up configuration owner withholding tax options for a combination of configuration owner and application event class. Using configuration owner tax options, a configuration owner can update default withholding tax options on transactions that belong to a specific application event class.

At payables transaction time, the withholding tax determination process considers the withholding tax option settings of the configuration owner and application event class.

Defining Event Class Processing Options

The following table describes the processing options available at the configuration owner withholding tax options level for the following application and event classes:

• Payables: Standard Invoices

• Payables: Prepayment Invoices

Enable your withholding tax options for a specific effective period.

Option	Description
Event Class	Applies withholding tax to standard invoices, including credit and debit memos, or prepayment invoices.
Apply Withholding	Applies withholding if the tax authority requires your company to withhold taxes from suppliers.
Process Transaction Taxes	Allows the calculation of withholding tax on transaction tax lines.
Allow Manual Withholding	Lets you create and adjust manual withholding tax lines for your invoices.
Regime Determination Set	Controls whether the tax determination process uses: Migrated 11i approach using standard tax classification codes where the value is WHTSTCC Full regime determination using the predefined rule of WHTTAXREGIME to determine applicable tax regimes
Calculation Point	Specifies the time when withholding tax is applied. The options are Both, Invoice, or Payment. Both is available only for the WHTTAXREGIME regime determination set.
Tax Invoice Creation Point	Specifies the time when a tax authority invoice is automatically generated. Select Blank to not automatically generate an invoice. The options are dependent on the value in the Withholding Calculation Point field: If the calculation point is Both, you can select Blank, Payment, or Both as the tax invoice creation point. 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	Determines 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	Applies rounding to calculated tax amounts once for each withholding tax rate per invoice or to the calculated withholding tax amount on each invoice line.
Tax Determination Date	Specifies the date used for determining applicable withholding tax rates and rules. Accounting date is the default value, but you can change it to Invoice date if necessary. Note: This option is hidden by default. You can expose the column by using the View menu.