Hi All.
Please help me, I would like to set up the withholding tax on APP 8, as in Italy this needs to be handled separately. Could someone help me with this from the very beginning? The Italian equivalent is Ritenuta d'acconto, which can be applied at different percentages. What basic data settings are required? This should appear during the payment process, and is it controlled by transaction PP49?
Hello,
Italian setup does not deviate from standard Withholding tax setup in IFS.
You need to define tax codes with Withholding Tax tax type and required percentages, and corresponding Income types.
Then you need to enable Withholding tax reporting for supplier (Invoice info) - and under RMB connect Income type and tax code to the supplier.
Once done, all you need is to make sure income type is indicated on supplier invoice line.
Please pay attention to company parameter “Post Preliminary tax Withholding” - if it is checked, withholding tax is deducted from invoice amount at invoice entry (by U voucher) so invoice is presented in GL in payable amount only and at payment to supplier WHT tax is converted from deducted to due. Otherwise tax is deducted at payment only.
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.