| Setting up withholding tax and social
contributionsTo set up withholding tax and social
contributions: Set up the parameters In the Implemented Software Components (tccom0100s000) session, select the Withholding Income Tax and Social Contribution check box. Define the tax categories If you must distinguish various types of withholding tax and
social contributions on your reports, define the tax categories required for your country in the Tax Categories (tctax0115m000) session. Define tax base value formulas Define the tax codes Define the tax codes, the tax rates, and the tax posting
data as described in Setting up tax registration. These details are especially important: Approve the tax codes Before you can link the tax codes to a group tax code, in
the Tax Codes by Country (tcmcs0136s000) session, you must select the Approved check box for each tax code. Define a group tax code In the Tax Codes by Country (tcmcs0136s000) session, define a tax code and select the Group Tax check box to indicate that the tax code is
a group tax code. For a group tax code, you cannot enter
other tax details. Approve the group tax code Before you can link the tax codes to a group tax code, in
the Tax Codes by Country (tcmcs0136s000) session, you must select the Approved check box for the group tax
code. Add the tax codes to the group tax code In the Tax Codes by Country (tcmcs0536m000) session, from the appropriate menu, select Tax Codes by Group. The Tax Codes by Group Tax Code (tctax0139m000) session starts. In the Tax Codes by Group Tax Code (tctax0139m000) session, click New to add
the tax codes that you defined in Step 3 to the group tax code. You must link one tax code of the VAT kind. The tax codes
must have the Approved status. If you click the browse arrow of the Tax Code field, LN only lists tax codes that you can add to the group tax code. Set up default group tax codes for your business
partners Link the group tax code to the tax classification in one of these sessions: - Tax Exceptions by Country (tctax1100m000)
- Tax Exceptions by Country Set (tctax1101m000)
You can only select a group tax code if you enter these
details: - The Order Origin must be Purchase or Purchase Invoice.
- The Tax Classification field must be filled.
If you save the data, LN verifies that the
group tax code contains tax codes of the kinds of tax that correspond with the
selected tax classification. In the Tax Parameters (tctax0100m000) session, select Exceptions by Country or Exceptions by Country Set, as applicable, in the Search Sequence 1 field. Set up the business partners for withholding tax and social
contributions
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