Global withholding tax
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.
Mexico specifics
In Mexico, there can be a global withholding tax that is processed at the time of payment. This withholding tax can be in addition to tax at the time of the invoice, which is called VAT.
There are several types of global withholdings that are dictated by the Government of Mexico. One example is a withholding of two thirds percent of the tax that is charged to them by the vendor
Another example is withholding for 4% of the value of the total invoice amount, when they receive the services of ground transportation of goods.
How Infor meets the requirement
See the Payables User Guide.