SAP Knowledge Base Article - Public

2998451 - Withholding Tax Calculation During Payment for Israel Country

Symptom

You have posted Supplier Invoice for country Israel without WHT calculation. While doing payment, you are expecting that the Withholding tax should be calculated by the system as per the Tax Rate maintained in the Supplier master data.

Environment

SAP Business ByDesign

Reproducing the Issue

  1. Go to the Supplier Invoicing work centre.
  2. Post the Supplier Invoice without WHT Tax for Country Israel. 
  3. Go to the Payables work centre.
  4. Click on the Supplier Accounts view.
  5. Find the supplier of the invoice created in step 2, and click on View.
  6. Select the Invoice created in step 2 and click on Pay Manually By.
  7. Select the Payment method as per your requirement. 
  8. In the Payment Screen, you observe that the Withholding Tax is not calculated. 

Resolution

Israel has an exceptional requirement where in as per the country laws the withholding tax should be calculated at the time of payment and any calculation that happens at the time of invoicing should not be considered. In the ByDesign system, to achieve this functionality a recalculation of withholding tax gets triggered at the time of payment, only if a supplier invoice has been issued, which takes the current rate maintained in the supplier master.

One of the main pre-requisites to achieve the recalculation is to know that the invoice is relevant for withholding tax, which can only be determined if the withholding tax information was available at the time of invoice creation.

In order to calculate the Withholding Tax in the payment, it is mandatory to Post first the Supplier Invoice with Withholding Tax record.

Keywords

Withholding Tax Israel, WHT Calculation for Israel, Withholding Tax in Payment. , KBA , withholding tax israel , withholding tax in payment , wht calculation for israel , SRD-FIN-GLO-TAX , GLO - Tax Declaration , Problem

Product

SAP Business ByDesign all versions