Calculation Details

Specify this information:
Withhold Point

This flag indicates whether the payment should be withheld at invoice or payment posting time.

Calculation Type
This determines how the withholding tax is calculated on the selected taxable transactions.

Options are:
- Non cumulative individual
  calculates the withholding tax on each individual taxable transaction.
- Cumulative
  calculates the tax on the cumulative total of all the taxable transactions selected for the tax time frame. In this case, cumulative taxable totals are maintained for each withholding tax time frame and are used in each successive calculation. If the cumulative source transaction amount is less than the Minimum Non-Taxable Base amount or the final tax amount is less than the Minimum to Withhold, then no transaction is generated. See 'Adding and Maintaining the Cumulative Tax Time Frames'.
- Non cumulative total
  calculates the tax on the total of the taxable transactions selected.
- Invoice Cumulative (Argentina)
  calculates the tax by the sum of transactions over the 12 months prior to payment.
Note: For Invoice Cumulative (Argentina) calculation type, if the sum reaches the minimum amount, two withholdings are determined, income tax and VAT.
Cumulative Time Frame

The time frame code that determines the tax period for which the cumulative values are calculated. This is required if the Calculation Type is set to Cumulative. For example, the withholding tax may be calculated and paid monthly, or fortnightly.

Note: This code must have been previously defined using Time Frames (WTF).

The accumulated values are reset automatically at the end of each time frame.

Account Tax Class
The basis for the withholding tax calculations identifies the type of transaction the withholding tax is calculated on. The valid values are:
- Gross
  to calculate the tax on the gross amount of transactions
- Net
  to calculate the tax on the net amount of transactions
- Tax
  to calculate the tax on the tax amount of transactions.
Apply by Default

This check box controls how the supplier or customer accounts for which the tax should be calculated are determined. It allows you to calculate withholding tax even if no tax adjustment is applied. If Apply by Default is not selected withholding tax will only be calculated if there is a tax adjustment.
Uncheck this check box, to leave blank, if this type of withholding tax should only be calculated on the source accounts that reference this withholding code specifically.

Note: This check box is checked by default.

Receivables or Payables

This option indicates whether the Withholding Tax Type applies to the receivable transactions generated via Payment Collection Run (PYC) or payable transactions generated via Payment Run (PYR). This option is only available if the Withhold Point is Payment Posting.
Save your changes.