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Administrator Guide
Last Updated: 2023-06-23
Configure Withholding Tax Rules for Items

Configure Withholding Tax Rules for Items

  • Create withholding tax item groups.
  • Assign items to the tax item groups.
  • Security:
    Set Up: Tax
     domain in the Common Financial Management functional area.
You can define withholding tax codes for specific items. You can then map these rules to locales within country-specific tax rules to override all other withholding tax code defaulting.
  1. Access the
    Create Withholding Tax Rule for Items
     task.
  2. In the
    Tax Item Rule Type
     prompt, select:
    • Revenue
       for sales items.
    • Spend
       for purchase items.
  3. As you complete the task, consider:
    Option Description
    Spend Category
    Revenue Category
    If you leave
    Item
     blank, select a spend or revenue category to apply the rule line to all purchase, expense, or sales items with the selected category.
    Tax Item Group
    Select a tax item group to apply the rule line to all items in that item group.
    Item
    Select an item to apply the rule line to only that item.
    Tax Code Override
    Select the withholding tax code to use on transaction lines for this rule. This value overrides the default withholding tax code specified in a tax rule for any country that references this rule.
You can associate your withholding tax rules for items with tax rules for countries.