You have met the following pre-conditions to trigger the automatic withholding tax calculation. However, Thailand withholding tax still can't be determined automatically when creating supplier invoice(s).
1. Tax Authority/ Company Tax Arrangement:
Withholding Tax Indicator
- If the indicator is selected, the company will withhold taxes whereever applicable.
- Country Code - If no entry is provided for a country, it implies that the supplier is not subject to withholding.
- Tax Type Code - A tax rate type code can be assigned for a particular country and tax type; in this case, the supplier is subject to withholding.
- In most cases, there is only one tax rate type code available because withholding tax rates do not depend on the supplier.
- Tax Rate Type Code - In some countries, there are withholding taxes where the rate is influenced by the supplier; in this case, there are multiple tax rate type codes available.
There is a third precondition which needs to be fulfilled:
- Country Code
- Tax Type Code
- Withholding Tax Income Type Code
A product is only subject to withholding tax if these details are provided.
In the supplier invoice the system checks the Product ID and then calculates the withholding tax accordingly.
If you maintain a supplier invoice item without product ID or with a product for which no withholding tax details are maintained, you need to maintain one more detail in the Supplier tax data, the withholding tax income type, in order to have the withholding tax calculated automatically.
SAP Business ByDesign
Reproducing the Issue
Go to Supplier Invoicing work center.
- Go to New Invoice Without Purchase Order common task.
- Enter Supplier, Buying Company and Product which has valid withholding tax settings.
- Click on View All.
- View Items tab and navigate to Taxes tab.
- View Withhodling Tax Details subtab. It displays 'No records found'.
The automatic tax code determination for withholding tax will happen for Thailand only when the invoice net amount exceeds 999.999999 THB as the withholding taxes were to be applied by default only when the threshold amount is exceeded.
When the net amount is greater than 999.999999 THB, the system automatically determine the withholding tax code and calculates the withholding tax amount. When the net amount is less than 999.999999 THB, you can select the withholding tax code manually and go ahead with the postings.
Thailand, Withholding Tax , KBA , SRD-FIN-GLO-TAX , GLO - Tax Declaration , Problem