| # Tax Classifications (tctax0116m000) Use this session to maintain tax classifications. For each classification, you can indicate whether withholding tax and/or social contribution applies to purchase invoices for business partners with the classification. For tax classifications that you use for exception modeling which is not related to withholding tax and/or social contributions, you can clear both the Withholding Income Taxes Allowed and the Social Contribution Taxes Allowed check boxes. In the Invoice-from Business Partner (tccom4122s000) session, you can select your suppliers' tax classification. Related topics To model tax exceptions Setting up withholding tax and social contributions Business Partner Tax Classification The tax classification code, followed by a description. Business Partner Tax Classification Withholding Income Taxes Allowed If this check box is selected, LN can register and report withholding tax on purchase invoices from the business partner. If this check box is selected, for purchase orders and purchase invoices for the business partner you can use group tax codes that include a tax code for which the Kind of Tax field has one of these values: Withholding Income Tax Exclude from Withholding For tax classifications that you use for exception modeling which is not related to withholding tax and/or social contributions, you can clear both the Withholding Income Taxes Allowed and the Social Contribution Taxes Allowed check boxes. Social Contribution Taxes Allowed If this check box is selected, LN can register and report social contributions on purchase invoices from the business partner. If this check box is selected, for purchase orders and purchase invoices for the business partner you can use group tax codes that include a tax code for which the Kind of Tax field has one of these values: Withholding Social Contribution Exclude from Withholding Social Contribution (Company Expense) For tax classifications that you use for exception modeling which is not related to withholding tax and/or social contributions, you can clear both the Withholding Income Taxes Allowed and the Social Contribution Taxes Allowed check boxes. Maximum Withholding Tax Percentage The maximum withholding tax percentage for a tax classification. This rate is used if no effective withholding tax rate exists at business partner level. Note This field is only available if, in the Implemented Software Components (tccom0500m000) session, Withholding Tax for Israel is selected. |