Set up withholding tax in System administration and General ledger
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Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012
Withholding tax is a tax on vendors that does not create sales tax transactions. Withholding tax that is calculated on vendor payments is a liability. Therefore, only balance sheet accounts or liability accounts are valid accounts for posting withholding tax.
Withholding tax is reported in fixed reports.
Click System administration > Setup > Licensing > License configuration.
Expand the General ledger node and select the Withholding tax check box.
Click General ledger > Setup > Withholding tax > Withholding tax codes.
Create withholding tax codes with values and limits.
Click General ledger > Setup > Withholding tax > Withholding tax groups.
Create withholding tax groups and add the relevant withholding tax codes on the Setup tab.