Symptom
While trying to edit the Canadian Withholding Tax Configuration, you noticed that the fields to add a new Tax Code or change the Tax Rate are greyed out.
Reproducing the Issue
- Go to Business Configuration Work Center.
- Go to Implementation Projects View.
- Select your project and click Open Activity List button.
- Go to Fine Tune tab.
- Search and open the activity Withholding Tax - Canada.
You see that it's not possible to add a new Tax Code or change any withholding tax rates schedules.
Cause
The 2 Withholding Tax Codes which exist for Canada in Business ByDesign are only with 0% calculation.
This is also expressed in the description of the withholding tax codes.
There isn’t any withholding tax amount to be withheld, but the base amount of the relevant transactions should be reported. We currently support in Canada 2 withholding income types, both with 0% rates: 22 - Construction Payments and 48 - Fees for Services.
The corresponding withholding tax codes 2 - T4A Reportable, Zero Taxable (for income type 48) and 3 - T5018 Reportable, Zero Taxable (for income type 22) have different base amount for the calculation: net amount for 2 and gross amount for 3.
The whole Business Configuration for Canada Withholding Tax is done read only on purpose.
Resolution
System behavior is correct and Withholding Taxes for Canada are read only.
Keywords
KBA , AP-ACC , Business ByDesign: Financial Accounting , How To