Withhold tax calculation during invoicing
Important
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| Enabled for | Public preview | General availability |
|---|---|---|
| Users by admins, makers, or analysts | - | 
Jul 14, 2023 |
Business value
Though in many countries/regions, withholding tax is only due on payment, there are companies in other countries/regions such as Italy, Netherlands, Mexico, Egypt, Indonesia, and the Philippines with firm practices to calculate, display, and post withholding tax at invoice time. In the Philippines, withholding tax posting at invoice time is legally required.
Feature details
With this feature, the withholding tax amount is estimated on the purchase order and the vendor invoice so that the user can validate the withholding tax setup prior to payment.
The following functionalities are available with this feature:
- A Withholding tax button for temporary withholding tax transactions that contain the withholding tax amount information at document header level.
- Withholding tax amount is calculated and recalculated after field and transaction updates.
- Withholding tax limit, threshold, and cash discount are considered in the calculation.
- Withholding tax group assignment, code determination validation, and error handling.
- Withholding tax currency exchange rate date adaptation.
At this time, withholding tax posting during invoicing is not available.
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