Setting Up Withholding Tax

Important:

This topic pertains to withholding tax in NetSuite accounts that do not have the SuiteTax feature enabled. If you are using a NetSuite account where the SuiteTax feature is enabled, go to Withholding Taxes in SuiteTax.

Withholding tax is no longer being updated for new features and reports in accounts that do not have the SuiteTax feature. All version upgrades of the Withholding Tax SuiteApp include fixes for reported issues only.

To use the withholding tax features in NetSuite, you must install the Withholding Tax SuiteApp.

Note:

US and Canada nexuses are not supported.

Prerequisites

Before installing the Withholding Tax SuiteApp:

1. Make sure that the following features are enabled in your account prior to installing the Withholding Tax SuiteApp:

   1. Advanced Taxes

   2. Custom Records

   3. Server SuiteScript

   4. Client SuiteScript

   To enable these features, go to Setup > Company > Enable Features. For Server SuiteScript and Client SuiteScript, you must agree to the SuiteCloud Terms of Service when you enable these features. For more information, see Enabling Features.

2. Make sure that Expand Account Lists is enabled in your account. To enable this preference, go to Setup > Accounting > Accounting Preferences. For more information, see Accounting Preferences.

3. For newly provisioned OneWorld accounts, install the International Tax Reports SuiteApp. The International Tax Reports SuiteApp enables the automatic creation of tax codes when you add a new country nexus to your NetSuite account. For more information, see International Tax Reports. Alternatively, you can manually create tax codes. You can refer to country-specific tax topics for guidance.

4. For each nexus where withholding tax is used, make sure that you have VAT/GST or sales tax codes defined as follows:

   • Exclude from VAT reports

   • Tax Rate: 0%

     You can use the UNDEF tax code provisioned by NetSuite.

     

5. If you are using the Multi-Location Inventory feature, make sure that the Location field is displayed on custom forms. The Location field is mandatory when the Multi-Location Inventory feature is enabled. Hiding this field may cause issues. To configure fields on custom transaction forms, see Configuring Fields or Screens.

Installing the Withholding Tax SuiteApp

The Withholding Tax SuiteApp is a managed bundle and is automatically updated whenever there are improvements or new features added.

You can install the Withholding Tax SuiteApp in any NetSuite account, including OneWorld.

To install the Withholding Tax SuiteApp:

Important:

Move the International Tax Reports and Withholding Tax scripts at the top of the scripts lists to avoid conflicts with other scripts. For more information, see Withholding Tax Troubleshooting Guide.

1. Go to Setup > Company > Enable features.

2. Click the Tax subtab.

3. Click Withholding Tax.

4. On the SuiteApp Details page for Withholding Tax (Bundle ID: 47459), click Install.

For information about installing SuiteApps, see Installing a Bundle.

For information about the limitations of the Withholding Tax SuiteApp, see Known Limitations of the Withholding Tax SuiteApp.

Withholding Tax Setup Steps

After installing the Withholding Tax SuiteApp, set up the withholding tax preferences, tax types, tax codes, and tax groups for each of your nexuses that use withholding tax. You can also set default withholding tax codes on items, customers, and vendors. Read the following topics:

1. Setting Up Withholding Tax Preferences

2. Setting Up Withholding Tax Types

3. Setting Up Withholding Tax Codes

4. Setting Up Withholding Tax Groups

5. Setting Default Withholding Tax Codes

For information about roles and permissions for withholding tax features, see Creating or Customizing Roles to Use Withholding Tax Features.

Upon installation, the Withholding Tax SuiteApp shows withholding tax fields by default on all existing custom transaction forms. In the custom form definition, the Show box is already checked for the withholding tax fields.

Important:

The withholding tax fields will only be displayed on the form if withholding tax is enabled for the subsidiary. For new custom transaction forms, ensure that the withholding tax fields are shown.

The following transaction column fields are used for withholding tax on transactions:

• Withholding Tax Amount - Expense

• Apply WH Tax?

• Item's Default WT Code

• Withholding Tax Base Amount - Expense

• Withholding Tax Rate - Expense

• Withholding Tax Code - Expense

• Withholding Tax Line - Expense

Related Topics

• Withholding Tax Overview
• Creating or Customizing Roles to Use Withholding Tax Features
• Setting Up Withholding Tax Preferences
• Setting Up Withholding Tax Types
• Setting Up Withholding Tax Codes
• Setting Up Withholding Tax Groups
• Setting Default Withholding Tax Codes
• Applying Withholding Taxes on Transactions as a Buyer
• Recording Withholding Taxes on Transactions as a Seller
• Importing Withholding Tax Transactions
• Withholding Tax Reporting
• Withholding Tax Troubleshooting Guide
• Known Limitations of the Withholding Tax SuiteApp

General Notices