Maintain Default Tax Parameters per Year {FPMOWT-1}

The default Withholding Tax Rate and Threshold for the Year are set up and maintained in this option.

Withholding tax is a government requirement is some countries for the payer to withhold or deduct tax from the payment, and pay that tax to the government.Governments use withholding tax as a means to combat tax evasion, and sometimes impose additional withholding tax requirements if the recipient has been delinquent in filing tax returns, or in industries where tax evasion is perceived to be common.

Should a institution elect to apply withholding tax on payments made to suppliers or goods and srevices the SOD code - QA shoudl be set to (Y)es and a transaction type must be set up to be used to process the withholding tax when the payment program {PFMOPD-1} is run and withholding tax is appicable SOD code - QA s

On insert of a new entry in this option a record is created in the Maintain Withholding Tax per Creditor table {FPMOWT-2}, for each active creditor.

@Critically important information (delete if not applicable).

Fields in this option:

Block 1: Maintain Default Tax Parameters per Year

Processing Rules for this Block (delete if not applicable).

Field	Type & Length	Description
Year	N4	Enter the Withholding Tax Year to which the defaults apply. The system uses the document dateto determine the Tax Year and subsequent Tax Rate to deduct withholding tax therefor a record must exist here for every year in for a a creditor to which the refernce date refer.
Rate	N3.2	Enter the Withholding Tax Rate for this Tax Year, valid between 0.00 and 100.00.
Threshold	N17.2	Enter the minimum Payment, Order or Contract Amount from which to start deducting Withholding Tax, for the specified year.

Example:

Examples
	If 10 000.00 is the threshhold, and the payment amount is above the threshhold, the payment will be subject to Withholding Tax.

Processing Rules
	No special processing rules.