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<ManualTopic ID="/baanerp/tc/onlinemanual/000401" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Withholding tax</Title>
		<Keyword><Level1>Tax</Level1>
			<Level2>Withholding tax</Level2>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph><Link href="/baanerp/tc/glossary/glossary#000401" role="glossary">Withholding tax</Link> on construction work is a kind of tax that is withheld, for example, on invoices for construction work that you receive from a business partner. Withholding tax on construction work is separate from VAT, the two types of tax can apply independently of each other.</Paragraph>
		<Paragraph>If the business partner provides you with an exemption order from his local tax office, you do not have to apply withholding tax and the normal business partner payment procedure applies.</Paragraph>
		<List><ListIntro>Withholding tax is related to the payment amount, which implies that:</ListIntro>
			<ListItem>Withholding tax is calculated as a percentage of the payment amount. Therefore, if a payment discount applies, the amount to be withheld decreases.</ListItem>
			<ListItem>The amount becomes due after the actual payment date (usually, the 10th of the following month).</ListItem>
		</List>
		<Paragraph>In practice, most suppliers are exempt from withholding tax.</Paragraph>
		<Paragraph>If the pay-to business partner is not exempt from withholding tax, you must ensure that the invoice is handled correctly. Some SSA ERP add-on software is available for this.</Paragraph>
	</GeneralSection>
	<Note><SectionTitle>Note</SectionTitle>
		<Paragraph>As most suppliers are exempt from withholding tax, in SSA ERP you can indicate for specific pay-to business partners that the invoices are subject to withholding tax, and you can register the business partner's exemption information. You can print a report of your suppliers who are subject to withholding tax and have an exemption order, and see until which date the exemption orders are valid.</Paragraph>
	</Note>
	<GeneralSection><SectionTitle>To set up withholding tax</SectionTitle>
		<ProcedureList><ListIntro>To set up withholding tax on construction work for business partners who possess exemption orders, use the following sequence of sessions:</ListIntro>
			<ListItem><GUIRef href="/baanerp/tf/acp/tfacp0100s000" role="session">ACP Parameters (tfacp0100s000)</GUIRef>:On the <GUIRef href="" role="manual">Withholding Tax on Construction Work</GUIRef> tab, select the <GUIRef href="/baanerp/tf/acp/tfacp0100s000#tfacp000.uwht" role="formfield">Withholding Tax</GUIRef> check box.</ListItem>
			<ListItem><GUIRef href="/baanerp/tc/com/tccom4124s000" role="session">Pay-to Business Partners (tccom4124s000)</GUIRef> Select the <GUIRef href="/baanerp/tc/com/tccom4124s000#tccom124.uwht" role="formfield">Using WHT</GUIRef> check box and enter the business partner's withholding tax data. Select the <GUIRef href="/baanerp/tc/com/tccom4124s000#tccom124.exor" role="formfield">Exemption Order</GUIRef> check box and enter the dates when the exemption is valid.</ListItem>
		</ProcedureList>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000075" role="manual">Overview of tax handling</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/tc/onlinemanual/000401" role="manual">Withholding tax</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
