What are the Withholding Tax Cumulative Totals?

Withholding tax may need to be calculated on the cumulative payments that are made to a supplier, or it may need to be calculated on collection from a customer during the tax period (time frame). This is because the tax rate may change according to the cumulative taxable amount.

The withholding tax cumulative totals are set up on Withholding Tax Types (WTT) in the Calculation type field.

If the Calculation type field is set to Cumulative, Withholding Tax automatically stores the transaction amounts it needs in order to to calculate the cumulative taxable value each time withholding tax is calculated.

The tax periods, for which the cumulative values are calculated, are defined using Time Frames (WTF). They do not need to correspond to the accounting periods.