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.

Mexico specifics

Entities in Mexico must generate a value-added tax (VAT) return on their purchases and submit it to the tax authorities in an electronic format. This Declaración Informativa para Operaciones con Terceros (DIOT) statement contains the VAT of your purchases according to the general requirements of the Servicio de Administración Tributaria (SAT). It must be prepared and submitted monthly.

How Infor meets the requirement

  • Perform withholding code setup and assign to vendors.
  • Create transactions for the vendor, process the payment cycle for these transactions, and run the VAT Return report. The VAT Return report triggers the SyncLCLTaxReport BOD. Only paid invoices and the CreditMemos are considered in the BOD.
  • After the LCL Tax Report BOD is triggered to LSP, the output is generated to the designated folder.
  • From Infor FSM, SyncLCLTaxReport BOD is used to send the information to LSP. The required changes are made to the BOD.
  • In the BOD, each vendor represents a Tax Report Line.
  • Transaction Summary lines are grouped based on the tax codes and the corresponding conditions. See the table below.
  • Tax Withheld information is published in the BOD. Tax Withheld is the transaction summary type. This is the cumulative amount that is withheld for that particular vendor. For the summary types of returns transactions, only vendor returns are considered.
  • The BOD changes are only for the Payables side. Receivables is not in scope.

On successful triggering of the BOD, the BOD is validated against the corresponding schema. The output is generated in the designated folder.

See BODs.

See Setting up for withholding tax report.

Information in this table is used in the BOD to group transactions:

Tax rate Tax code Country code Country sub division code Transaction summary type
0% IEPS/EXEMPT/EXENTO MX Any Exempt Activity
0% EXEMPT/EXENTO Other than MX Any Exempt Import
0% Any Any Any Exempt
16% or 15% Any MX Any Standard Rate
16% or 15% Any Other than MX Any Standard Import
11% or 10% Any MX Any Reduced Rate
11% or 10% Any Other than MX Any Reduced Import
8% Any MX BC,CH,CO,NL,SO,TM Northern Region
Any Any Any Any Returns (Vendor Return Credit memos)
Any Any Any Any Withholding (Payables Invoices withholdings)