Withholding tax processing

Withholding tax is typically a government requirement. The payer of income withholds or deducts direct tax from the payment and pays the tax to the government. Accounts payable withholding tax encompasses situations where amounts are held back from payments to the vendor and the payments are reported to the government.

Argentina specifics

Customers that are withholding agents are responsible for withholding taxes from the issued invoices by vendors that are subject to withholding tax. The customer pays the vendor invoice net of the withholding tax amount. The customer issues a withholding certificate and pays the amount of withheld tax to the Administración Federal de Ingresos Públicos (AFIP).

How Infor meets the requirement

See the Payables User Guide.