Withholding tax reporting

Taxpayers must submit a report to the tax authorities of the vendors that have received payments and the tax withholding that was performed. Typically, these vendors are classified by vendor type and transaction type. Taxpayers must also provide each vendor with a report or letter confirming the tax that has been withheld in the period.

Australia specifics

The Australian requirement is to report monthly the amount deducted and gross value on the GST return.

A Taxable Payments Annual Report (TPAR) must be submitted annually by 28 August if a business is providing these services or is a government entity:

  • Building and construction services
  • Cleaning services
  • Courier services
  • Road freight services
  • Information technology (IT) services
  • Security, investigation, or surveillance services

The TPAR shows the details of payments that are made to contractors for providing services. Some government entities also must report the receipt of grant money in a TPAR.

How Infor meets this requirement

For the Australian accounting entity, a withholding tax report subscription is a requirement to generate this report. Master data for this data must exist in LSP:
  • Accounting Entity
  • Accounting Chart
  • Financial Calendar
  • Supplier Party Master BODs

When the supplier invoice payment is complete, the FSM_ION_SyncPayableTracker_Outbound BOD is transmitted to LSP. You can then generate the TPAR from the transmitted BODs.

Use this Localization Services Platform (LSP) setup to test this requirement:
Field Values
Default Code T-Test or P-Production
Withholding Tax Reporting Translation Maintenance NT-northern territory or NSW-New South Wales
Tax Code Translation GST-10%

Use these BODs to generate the TPAR:

  • FSM_ION_SyncAccountingChart_Outbound
  • FSM_ION_SyncAccountingEntity_Outbound
  • FSM_ION_SyncFinancialCalendar_Outbound
  • FSM_ION_SyncPayableTracker_Outbound
  • FSM_ION_SyncSupplierPartyMaster_Outbound

For Australia, FSM is supporting AU TPAR format. Australia - Withholding Tax Reporting subscription is a requirement. See Infor Localization Services Platform User Guide.