| To set up business partners for withholding tax and
social contributionsThe process to set up the details for business partners of
which the invoices are subject to withholding tax and social contributions
consists of the following steps: - Define tax classifications and link the tax classifications to
the business partners.
- Link the group tax codes to the tax classifications.
- Specify the business partner's withholding tax details.
- In some countries, the tax collector's office publishes maximum
amounts for each supplier over which you must withhold income tax and/or social
contributions. If tax base amount limits apply, define the tax base amount
limits.
Define tax classifications To define tax classifications and link the tax classifications
to the business partners, take the following steps: - In the Tax Classifications (tctax0116m000) session, define the tax
classifications. For each classification, you can indicate whether withholding
tax and/or social contribution applies to purchase invoices for business
partners with the classification.
- In the Invoice-from Business Partner (tccom4122s000) session, you can select your
suppliers' tax classification.
Link group tax codes to the tax classifications To link the group tax codes to the tax classifications, you
must define tax code exceptions as described in To define tax exceptions. -
In the Tax Exceptions by Country (tctax1100m000) or the Tax Exceptions by Country Set (tctax1101m000) session, enter the following
data:
Specify the business partner's withholding tax
details The withholding tax reports, declarations, and payments must
contain specific business partner details such as the business partner's fiscal number. To specify the business partner's
withholding tax details, take the following steps: - In the Business Partners (tccom4500m000) session, double-click the business partner to start
the details session.
- Click Invoice-from to start the Invoice-from Business Partner (tccom4122s000) session and on the appropriate menu, click Withholding Tax Data. The Business Partner Withholding Tax Data (tccom4127s000) session starts.
- Enter the various details. You must enter the business
partner's fiscal number.
Define the tax base amount limits You can define the maximum tax base amount in two
ways: For a range of invoice-from business
partners Take the following steps: - In the Income Tax & Social Contribution Limits (tctax0117m000) session, on the appropriate menu, click Generate. The Generate Limits of Income Tax and Social Contribution (tctax0217m000) session
starts.
- In the Generate Limits of Income Tax and Social Contribution (tctax0217m000) session, define the
tax base amount limit for a range of invoice-from business partners and one
type of tax (income tax or social contribution), tax category, and tax year.
For individual business partners In the Income Tax & Social Contribution Limits (tctax0117m000) session, specify the tax
base amount limit for each combination of: - Invoice-from business partner
- Type of tax, which can be income tax or social
contribution
- Tax category
- Tax year
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