3275837 - Withholding Tax Base Amount Being Calculated Based on Gross Amount Instead of Net Amount

You have created a custom add-on solution to implement new withholding tax content in the system. However, the resulting tax calculation is determining the Withholding Base Amount as a gross amount. You want to setup the solution so that the withholding tax base amount is calculated based on the invoice's net amount.

SAP Business ByDesign

1. Go to Supplier Invoicing work center.
2. Create a new invoice or open an existing document.
3. Input all the required fields for withholding tax calculation.
4. Go to Item tab.
5. Go to Taxes -> Withholding Taxes.
6. Select the relevant withholding tax code created on your custom add-on.
7. See the withholding tax base amount.

You notice that the base amount is determined using the invoice's gross amount. You expect it to be calculated based on the invoice's net amount. 

The Withholding Tax Configuration in your custom solution has the element WhtBaseDet is set to 2 - Gross instead of 1 - Net.

The field WhtBaseDet specify the determination type, such as Net or Gross, which is used during the withholding tax calculation to calculate the withholding tax base amount.

Therefore, if Net amount is required, you need to change the field to 1 - Net in your PDI add-on. This setting can be found by opening the add-on in SDK and navigating to the Withholding Tax Configuration of your solution.

For more details about enabling withholding tax via Cloud Application Studio, please visit the Localization Toolkit - How_To_Enable_WithholdingTax_For_Non Localized Country.

Localization Toolkit, Withholding Tax. Gross Amount. Tax Base Amount. , KBA , SRD-FIN-GLO-TAX , GLO - Tax Declaration , How To