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, a global withholding tax is sometimes processed at the time of payment. This withholding tax is added 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. For example, a withholding of two thirds percent of the tax 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.