Customizing Guide:

Withholding Tax Base Amount

Accumulation

– For Classic (Non-Condition-Based) Tax

Calculation –
Customizing Guide: Withholding Tax Base Amount Accumulation, Classic Tax Calculation

Content
1 Purpose of This Guide ........................................................................................ 3
2 Create Condition Types ...................................................................................... 3
2.1 Condition Types For Application TX..................................................................... 3
2.2 Condition Types For Application V ....................................................................... 3
3 Create Entries in J_1BAJ .................................................................................... 4
4 Create Processing Keys for FI (T007B)................................................................ 4
5 Assign Tax Accounts to Account Keys ................................................................. 5
6 Define Account Keys for SD (T687) ..................................................................... 5
7 Update Calculation Procedures ........................................................................... 6
7.1 Update Calculation Procedure FI......................................................................... 6
7.2 Update Pricing Procedure SD.............................................................................. 8
8 Customizing of Extended WHT............................................................................ 9
8.1 WHT Types at Payment ...................................................................................... 9
8.2 WHT Codes ......................................................................................................10
8.3 Define Processing Key For Modified Tax Amount ................................................10
8.4 Assign WHT Types to Company Codes ..............................................................11
8.5 Define Accounts for Withholding Tax to Be Paid Over..........................................11
8.6 Define Official Collection Codes .........................................................................11
8.7 Assign Condition Types to Withholding Tax Types ...............................................11
8.8 Maintain Tax Relevant Classification...................................................................11
8.9 Maintain Minimum Base Amount ........................................................................11
8.10 Maintain Withholding Tax SD Conditions ...........................................................12
9 FI Tax Codes ....................................................................................................12
9.1 Taxes in Tax Codes Used in MM ........................................................................12
9.2 Taxes in Tax Codes Used in SD.........................................................................12
10 SD Tax Codes (View J_1BTXSDCV) ..................................................................12
11 Master Data Changes ........................................................................................12
11.1 Vendors (Transaction XK02).............................................................................13
11.2 Customers (Transaction XD02).........................................................................13
12 Tax Rates .........................................................................................................13
12.1 Withholding Taxes ...........................................................................................13

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Customizing Guide: Withholding Tax Base Amount Accumulation, Classic Tax Calculation

1 Purpose of This Guide

The purpose of this guide is to describe how to technically set up the system for withholding
tax base amount accumulation. The prerequisite is that all coding and DDIC changes are
already implemented. This means, either the support package that contains the changes is
installed, or the changes are implemented manually, following the instructions of the
respective Note. For further details, see overview Note 815720 and the related notes
mentioned in this note.
After implementation of the support package or the Note, there are still manual steps
necessary to work with the new taxes. These manual steps are described in this guide.

2 Create Condition Types

New condition types have to be created. The following classes of condition types are affected:
• Tax code conditions (activation of withholding tax related to base amount
accumulation)
• Conditions with WHT codes (specific for SD)

2.1 Condition Types For Application TX

Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting
Global Settings -> Tax on Sales/Purchases -> Basic Settings -> Check Calculation Procedure
-> Define Condition Types and press push button New entries or select an existing entry and
press the push button Copy as … Finally, save all new entries.

2.1.1 Tax Code Conditions

Cond. Class: D (Taxes)
Calculat. Type: A (Percentage)
Cond. Category: 1 (Jur. Level 1)
Access Seq.: MWST
Manual Entries: D (Not possible to process manually)
Item Condition: X
Delete fr. DB: B (without popup)

Cond. Type Description

ICOQ COFINS WHT Accum.
ICW5 COFINS WHT SD – Accu
IGEQ General WHT - Accum.
IGW5 General WHT SD – Acc
IIRQ IR WHT - Accum.
IRW5 IR WHT SD - Accum.
IPSQ PIS WHT - Accum.
IPW5 PIS WHT SD - Accum.
ICSQ CSLL WHT - Accum.
ISW5 CSLL WHT SD - Accum.

2.2 Condition Types For Application V

Transaction SPRO: SAP Reference IMG -> Sales and Distribution -> Basic Functions ->
Pricing -> Pricing Control -> Define condition types -> Maintain Condition Types and press
push button New entries or select an existing entry and press the push button Copy as …
Finally, save all new entries.

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Customizing Guide: Withholding Tax Base Amount Accumulation, Classic Tax Calculation

2.2.1 Tax Code Conditions

Cond. Class: D (Taxes)
Calculat. Type: A (Percentage)
Cond. Category: 1 (Jur. Level 1)
Access Seq.: MWST
Manual Entries: D (Not possible to process manually)
Item Condition: X
Delete fr. DB: B (without popup)

Tax Type Description

ICW5 COFINS WHT SD – Acc
IGW5 General WHT SD – Acc
IPW5 PIS WHT SD - Accum.
IRW5 IR WHT SD - Accum.
ISW5 CSLL WHT SD - Accum.

2.2.2 WHT Code Conditions

Cond. Class: W (Wage Withholding Tax)
Calculat. Type: A (Percentage)
Cond. Category: D (Tax)
Access Seq.: J1AG (Arg.: Tax Relev. Clas)
Manual Entries: D (Not possible to process manually)
Item Condition: X
Delete fr. DB: B (without popup)

Tax Type Description

ICW6 COFINS WHT code Accu
IPW6 PIS WHT code Accu
ISW6 CSLL WHT code Accu
IRW6 IR WHT code Accu
IGW6 General WHT code Accu

3 Create Entries in J_1BAJ

Transaction SM30: maintain the view J_1BAJ

Tax Type Tax Group Description WHT Offset

ICOQ WACO COFINS WHT - Accumulated X
ICSQ WACS CSLL WHT - Accumulated X
IGEQ WAT General WHT - Accumulated X
IIRQ WAIR IR WHT - Accumulated X
IPSQ WAPI PIS WHT - Accumulated X
ICW5 WACO COFINS WHT SD - Accumulated X
IGW5 WAT General WHT SD - Accumulated X
IPW5 WAPI PIS WHT SD - Accumulated X
IRW5 WAIR IR WHT SD - Accumulated X
ISW5 WACS CSLL WHT SD - Accumulated X

4 Create Processing Keys for FI (T007B)

New processing keys (account keys) have to be created to post taxes to separate accounts
and to identify withholding tax amounts in the normal tax calculation.
Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting
Global Settings -> Tax on Sales/Purchases -> Basic Settings -> Check and Change Settings
for Tax Processing and press push button New entries or select an existing entry and press
the push button Copy as … Finally, save all new entries.

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Customizing Guide: Withholding Tax Base Amount Accumulation, Classic Tax Calculation

Tax Type: 2 (input tax)

Not deductible: X
Posting indicator: 3 (Distribute to relevant expense/revenue items)

Processing Key Description

WAC COFINS WHT
WAG General WHT
WAI IR WHT
WAP PIS WHT
WAS CSLL WHT

Tax type: 1 (output tax)

Non deductible: space
Posting indicator: 2 (separate line item)

Processing Key Description

WG5 General WHT - Acc.
WC5 COFINS WHT – Acc.
WI5 IR WHT - Acc.
WP5 PIS WHT - Acc.
WS5 CSLL WHT - Acc.

5 Assign Tax Accounts to Account Keys

Assign the same G/L account you have assigned to the account keys which are not related to
accumulation. For instance if you have assigned G/L account 177011 to account key WC3,
please assign 177011 to account key WC5. Same rule applies for account keys WC5, WG5, WI5, WP5,
and WS5.
Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting
Global Settings -> Tax on Sales/Purchasing -> Posting -> Define Tax Accounts select an
entry, specify the relevant Chart of accounts and maintain the G/L account. Finally, save all
new entries.

Posting Keys: 40 – 50

Account Key Account

WC5 177011
WG5 177022
WI5 177021
WP5 177013
WS5 177020

6 Define Account Keys for SD (T687)

Transaction SM30: maintain the view V_T687, Application V

Account Key Description

WC5 Cofins WHT
WG5 General WHT
WI5 IR WHT
WP5 PIS WHT
WS5 CSLL WHT

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Customizing Guide: Withholding Tax Base Amount Accumulation, Classic Tax Calculation

7 Update Calculation Procedures

7.1 Update Calculation Procedure FI
The FI calculation procedure below is based on SAP sample delivery TAXBRJ. The new
entries are shown in red. Adapt the calculation procedure that you use in a corresponding
way or create a copy of the old one and adapt the new one in order to have a backup.
Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting
Global Settings -> Tax on Sales/Purchasing -> Basic Settings -> Check Calculation
Procedure -> Define Procedure -> select a procedure for maintenance. Finally, save your
changes.
New requirements and/or formulas can be created in transaction VOFM.

Step Cntr CTyp Description From To Reqt SubTo Stat AltCTy AltCBV ActKy
100 0 BASB Base Amount 0 0 0 0 0
150 0 Ext. calculation 0 0 0 320 0
200 0 Level 200 0 0 0 0 0
210 0 IPI1 IPI Industr. In 100 0 0 521 301 VS1
215 0 IPIF IPI Industr. In 100 0 0 521 301 VS1
230 0 ICM1 ICMS Industr. In 100 0 0 523 303 VS2
231 0 ICMV ICMS DIFAL Con/Asset 100 0 0 523 303 ICD
232 0 ICMT ICMS Difal Investmen 100 0 0 523 303 ICD
233 0 ICMP ICMS Difal inv. off. 232 0 0 0 0 ICC
235 0 ICZG ICMS tax free 100 0 0 525 305 NVV
240 0 ICS1 Sub.Tributaria In 100 0 0 524 304 VS3
250 0 ICMF ICMS S.T. fr. offset 100 0 0 525 305 IC1
255 0 IFR1 ICMS on freight In 100 0 0 527 307 VS3
256 0 IFS1 ICMS ST freight In 100 0 0 528 308 VS3
260 0 IP1C IPI Ind.Clearing 100 0 0 521 301 IPC
265 0 IP1O IPI Ind.Clear.Off. 210 0 0 0 0 IPC
270 0 IC1C ICMS Ind.Clearing 100 0 0 523 303 ICC
275 0 IC1O ICMS Ind.Clear.Off. 230 0 0 0 0 ICC
300 0 Level 300 0 0 0 0 0
310 0 IPI2 IPI Consumption In 100 0 0 522 302 NVV
330 0 ICM2 ICMS Consumption In 100 0 0 523 303 NVV
331 0 ICMD ICMS Consumption In 100 0 0 523 303 NAV
340 0 ICS2 S.T. Consumption In 100 0 0 524 304 NVV
350 0 ICOP ICMS complement 100 0 0 525 305 ICP
355 0 ICOT STO-ICMS complement 100 0 0 525 305 ICP
360 0 ICOX ICMS complement 100 350 0 0 0 0 ICX
365 0 ISS2 ISS from MM In 100 0 0 526 306 NVV
366 0 ISSO ISS from SD Out 365 0 0 0 0 VS1
370 0 ICO1 ICMS compl Transfer 100 0 160 525 305 ICP
371 0 ICO2 ICMS compl. Tra. Off 370 0 160 0 0 ICX
372 0 ICO3 ICMS compl. NVV 100 0 0 525 305 ICP
373 0 ICO4 ICMS compl. NVV off 372 0 0 0 0 ICX
500 0 Level 500 0 0 0 0 0
510 0 IPI3 IPI from SD Out 100 0 0 521 301 MW1
520 0 ICM3 ICMS from SD Out 100 0 0 523 303 MW2
521 0 ICMM ICMS DIFAL Out 100 0 0 523 303 MW2
522 0 ICML ICMS DIFAL ofset out 521 0 0 0 0 ICC
530 0 ICS3 Sub.Tributaria Out 100 0 0 524 304 MW3
540 0 ISS3 ISS from SD Out 100 0 0 526 306 MW4
541 0 ICSO SOCIAL Offset TxIncl 540 0 0 0 0 MW4
550 0 ICZF ICMS Reverse (Z.F.) 100 0 0 525 305 ICZ
560 0 IFR3 ICMS on freight Out 100 0 0 527 307 MW3
570 0 IFS3 ICMS ST freight Out 100 0 0 528 308 MW3
600 0 ICM4 ICMS Consum Outgoing 100 0 0 523 303 MW2
700 0 Other taxes 0 0 0 0 0
710 0 INSS INSS Incoming 100 0 0 0 0 VST
720 0 INSX INSS offset (100-) 710 0 0 0 0 INX
750 0 PIS, COFINS, ISS 0 0 0 0 0
755 0 ISSA ISS at Provider 100 0 0 521 301 NVV

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Customizing Guide: Withholding Tax Base Amount Accumulation, Classic Tax Calculation

760 0 ISSB ISS WHT at Provider 100 0 0 522 302 ISW

765 0 ISSE ISS at Serv.Loc. 100 0 0 523 303 NVV
770 0 ISSF ISS WHT at Serv.Loc. 100 0 0 524 304 ISW
771 0 ISA3 ISS at Provider SD 100 0 0 521 301 MW4
772 0 ISB3 ISS WHT at Prov. SD 100 0 0 522 302 MW4
773 0 ISE3 ISS at Serv.Loc. SD 100 0 0 523 303 MW4
774 0 ISF3 ISS WHT Srv.Loc. SD 100 0 0 524 304 MW4
775 0 ISSG ISS Offsets 100 0 0 525 305 NVV
780 0 ICON COFINS NVV 100 0 0 821 801 NVV
785 0 ICOO COFINS NVVOff TxIncl 100 0 0 822 802 NVV
790 0 IPSN PIS NVV 100 0 0 823 803 NVV
795 0 IPSO PIS NVV Off. TxIncl 100 0 0 824 804 NVV
797 0 ICN3 COFINS from SD 100 0 0 821 801 COF
798 0 IPS3 PIS from SD 100 0 0 823 803 PIS
800 0 WITHHOLDING TAXES ON 0 0 0 0 0
GROSS
805 0 ICOW COFINS WHT 100 0 0 825 805 WTC
806 0 ICOQ COFINS WHT Accum. 100 0 0 855 815 WAC
810 0 ICOZ COFINS WHT Offset 805 806 0 0 0 NVV
815 0 IPSW PIS WHT 100 0 0 826 806 WTP
816 0 IPSQ PIS WHT - Accum. 100 0 0 856 816 WAP
820 0 IPSZ PIS WHT Offset 815 816 0 0 0 NVV
825 0 ICSW CSLL WHT 100 0 0 827 807 WTS
826 0 ICSQ CSLL WHT - Accum. 100 0 0 857 817 WAS
830 0 ICSZ CSLL WHT Offset 825 826 0 0 0 NVV
835 0 IIRW IR WHT 100 0 0 828 808 WTI
836 0 IIRQ IR WHT - Accum. 100 0 0 858 818 WAI
840 0 IIRZ IR WHT Offset 835 836 0 0 0 NVV
845 0 IGEW General WHT 100 0 0 829 809 WTG
846 0 IGEQ General WHT - Accum. 100 0 0 859 819 WAG
850 0 IGEZ General WHT Offset 845 846 0 0 0 NVV
851 0 Withholding Tax from SD 0 0 0 0 0
852 0 ICW3 COFINS WHT SD 100 0 0 825 805 WC3
853 0 ICW5 COFINS WHT SD - Accu 100 0 0 855 815 WC5
854 0 ICZ3 COFINS WHT Offset SD 852 853 0 0 0 WC4
855 0 IPW3 PIS WHT SD 100 0 0 826 806 WP3
856 0 IPW5 PIS WHT SD - Accum. 100 0 0 856 816 WP5
857 0 IPZ3 PIS WHT Offset SD 855 856 0 0 0 WP4
858 0 ISW3 CSLL WHT SD 100 0 0 827 807 WS3
859 0 ISW5 CSLL WHT SD - Accum. 100 0 0 857 817 WS5
860 0 ISZ3 CSLL WHT Offset SD 858 859 0 0 0 WS4
861 0 IRW3 IR WHT SD 100 0 0 828 808 WI3
862 0 IRW5 IR WHT SD - Accum. 100 0 0 858 818 WI5
863 0 IRZ3 IR WHT Offset SD 860 862 0 0 0 WI4
864 0 IGW3 General WHT SD 100 0 0 829 809 WG3
865 0 IGW5 General WHT SD - Acc 100 0 0 859 819 WG5
866 0 IGZ3 Genera WHT Offset SD 864 865 0 0 0 WG4
900 0 COFINS reduce stock 0 0 0 0 0
901 0 ICOV Cofins Offset 100 0 D 0 822 802 CO3
905 0 ICOS COFINS deduct. PO/GR 100 0 160 831 801 CO3
906 0 ICOU Cofins IV Non Deduct 100 0 161 831 801 NVV
907 0 ICOA Cofins ded. not inc. 100 0 0 841 801 CO3
910 0 PIS Reduce stock 0 0 0 0 0
911 0 IPSV Offset IPSS / IPSU 100 0 E 0 824 804 PI3
915 0 IPSS PIS deduct. PO/GR 100 0 160 833 803 PI3
916 0 IPSU PIS non deductib. IV 100 0 161 833 803 NVV
918 0 IPSA PIS ded. not inc. 100 0 0 843 803 PI3
950 0 100 0 0 0 0
955 0 230 0 0 0 0
970 0 JPGR PIS Goods reciept 950 955 0 0 0 PGR
975 0 JPIR PIS Offset GR 970 0 0 0 0 PGO
980 0 JCGR PIS Goods reciept 950 955 0 0 0 ICC
985 0 JCIR PIS Offset GR 980 0 0 0 0 ICX

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Customizing Guide: Withholding Tax Base Amount Accumulation, Classic Tax Calculation

7.2 Update Pricing Procedure SD

The below SD pricing procedure is based on SAP sample delivery RV XBRA. Examples for
other procedures (like RVXBRE etc.) are not given, since the changes are the same. The new
or changed entries are shown in red. Adapt the calculation procedures that you use in a
corresponding way or create copies of the old ones and adapt the new ones in order to have
a backup.
Transaction SPRO: SAP Reference IMG -> Sales and Distribution -> Basic Functions ->
Pricing -> Pricing Control -> Define and assign pricing procedures -> Maintain pricing
procedure -> select a procedure for maintenance. Finally, save your changes.
New requirements and/or formulas can be created in transaction VOFM.

Step Cntr CTyp Description From To Man. Reqt SubTo Stat AltCTy AltCBV ActKy Print
10 0 PR00 Price 2
10 1 ZPB0 Price w/o Taxes
10 2 ZPB1 Price+ISS
10 3 ZPB2 Price+PIS+COF
10 4 ZPB3 Price+ISS+PIS+COF
45 0 X
50 0 RB00 Discount (Value) 2
290 0 K
300 0 ICMI Price+Tax (for NF) 2 323 ERL X
320 0 K004 Material 2 ERS
321 0 K007 Customer Discount 2 ERS
322 0 K005 Customer/Material 2 ERS
329 0 320 328
400 0 KF00 Freight ERS
595 0 590
600 0 IBRX Brazil tax calc. 595 596 X 320
610 0 IPI3 IPI from SD X 521 301 MW1
620 0 ICM3 ICMS from SD X 523 303 MW2
630 0 ICS3 Sub.Trib. from SD X 524 304 MW3
650 0 ICZF ADMS Disc. Zona Fr. X 525 305 MWS
660 0 IFR3 ICMS on freight SD X 527 307 MW3
670 0 IFS3 ICMS ST freight SD X 528 308 MW3
675 0 ISS3 ISS from SD X 526 306 MW4
680 0 ISA3 ISS at Provider SD X 521 301 MW4
681 0 ISB3 ISS WHT at Prov. SD X 522 302 WK3
682 0 ISE3 ISS at Serv.Loc. sd X 523 303 MW4
683 0 ISF3 ISS WHT Srv.Loc. SD X 524 304 WK3
684 0 ICSO ISS offset 675 683 BRI
685 0 ICN3 COFINS from SD X 821 801 COF
686 0 ICO2 COFINS Offset SD 685 BRI
687 0 IPS3 PIS from SD X 823 803 PIS
688 0 IPS2 PIS Offset SD 687 BRI
700 0 Total Tax Value 610 690 X
720 0 ICMO ICMS offset 620 BRI
740 0 DIFF Rounding Off 13 16 4 ERS
750 0 4 X
799 0 R100 100% discount 750 55 28 ERS
800 0 SKTO Cash Discount 9 X 11
810 0 VPRS Cost 4 B X
960 0 Withholding taxes
961 0 ICW3 COFINS WHT SD 825 805 WC3
962 0 ICW5 COFINS WHT SD - 855 815 WC5
Accu
963 0 ICZ3 COFINS WHT SD offset961 962 WC4
965 0 IPW3 PIS WHT SD 826 806 WP3
966 0 IPW5 PIS WHT SD - Accum. 856 816 WP5
967 0 IPZ3 PIS WHT SD Offset 965 966 WP4
970 0 ISW3 CSLL WHT SD 827 807 WS3
971 0 ISW5 CSLL WHT SD - 857 817 WS5
Accum.
972 0 ISZ3 CSLL WHT SD offset 970 971 WS4

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975 0 IRW3 IR WHT SD 828 808 WI3

976 0 IRW5 IR WHT SD - Accum. 858 818 WI5
977 0 IRZ3 IR WHT SD offset 975 976 WI4
979 0 IGW3 General WHT SD 829 809 WG3
980 0 IGW5 General WHT SD - Acc 859 819 WG5
981 0 IGZ3 Genera WHT SD offset 979 980 WG4
985 0 Withholding taxes: Tax X
codes
986 0 ICW4 COFINS WHT code 963 164 X
987 0 IPW4 PIS WHT code 965 164 X
988 0 ISW4 CSLL WHT code 972 164 X
989 0 IRW4 IR WHT code 975 164 X
990 0 IGW4 General WHT code 979 164 X
991 0 ICW6 COFINS WHT code 963 164 X
Accu
992 0 IPW6 PIS WHT code Accum. 965 164 X
993 0 ISW6 CSLL WHT code 972 164 X
Accum
994 0 IRW6 IR WHT code Accum 975 164 X
995 0 IGW6 General WHT code Acc 979 164 X

8 Customizing of Extended WHT

Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting
Global Settings -> Withholding Tax -> Extended Withholding Tax -> Calculation ->
Withholding Tax Types -> Define Withholding Tax Types for Payment Posting -> specify a
country key (BR for Brazil) and press push button New entries or select an existing entry and
press the push button Copy as … Finally, save all new entries.

8.1 WHT Types at Payment

8.1.1 Change WHT types

Set the parameter for Origin of Base to Base in Standard FI Tables.

Base amount = Modified Tax Amount

Origin of Base = Base in Standard FI Tables
Rounding rule = W/tax comm round
Cash Discount = C/disc pre W/tx
Post w/tax amount = X
No accumulation
W/tax base manual = X
Manual w/tax amount = X
No cert numbering = X
Base amount = W/tax code level
Withholding tax amount = W/tax code level
No central invoice
Minimum Check at item level

W/Tax Type Description

CP COFINS at Payment
GP General WHT (PIS/COF/CSLL/IR) at Payment
PP PIS at Payment
RP IR at Payment
SP CSLL at Payment

8.1.2 Create WHT types

Base amount = Modified Tax Amount

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Origin of Base = Base Stored in Nota Fiscal

Rounding rule = W/tax comm round
Cash Discount = C/disc pre W/tx
Post w/tax amount = X
Accumulation type = Per Month
Combined accum. = X
W/tax base manual = X
Manual w/tax amount = X
W/tax for pmnts = X
No cert numbering = X
Base amount = Type level
Withholding tax amount = W/tax code level
No central invoice
Minimum Check at item level

W/Tax Type Description

CA Cofins at Payment - Accumulated
GA General WHT at Payment - Accumulated
PA PIS at Payment - Accumulated
RA IR at Payment - Accumulated
SA CSLL at Payment - Accumulated

8.2 WHT Codes

Trans action SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting
Global Settings -> Withholding Tax -> Extended Withholding Tax -> Calculation ->
Withholding Tax Codes -> Define Withholding Tax Codes -> specify a country key (BR for
Brazil) and press push button New entries or select an existing entry and press the push
button Copy as … Finally, save all new entries.

Percentage subject to tax: 100,00%

With/tax rate: 100,00%
Posting indicator: 1

W/Tax Type W/Tax Code Description

CA CA 100% of COFINS WHT Amount - Accumulated
GA GA 100% of General WHT Amount - Accumulated
PA PA 100% of PIS WHT Amount - Accumulated
RA RA 100% of IR WHT Amount - Accumulated
SA SA 100% of CSLL WHT Amount - Accumulated

8.3 Define Processing Key For Modified Tax Amount

Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting
Global Settings -> Withholding Tax -> Extended Withholding Tax -> Calculation ->
Withholding Tax Base Amount -> Define Processing Key for Modified Tax Amount -> specify
a country key (BR for Brazil) and press push button New entries or select an existing entry
and press the push button Copy as … Finally, save all new entries.

WHT Type Processing Key

CA WAC
CA WC5
GA WAG
GA WG5
PA WAP
PA WP5
RA WAI
RA WI5
SA WAS
SA WS5

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8.4 Assign WHT Types to Company Codes

In IMG, assign all relevant WHT types to all Brazilian company codes that are subject to
them.
Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting
Global Settings -> Withholding Tax -> Extended Withholding Tax -> Company Code -> Assign
Withholding Types to Company Code -> press push button New entries or select an existing
entry and press the push button Copy as … Finally, save all new entries.
• To activate for MM, flag With/tax agent in vendor data and assign validity.
• To activate for SD, flag Subject to w/tax in customer data.

8.5 Define Accounts for Withholding Tax to Be Paid Over

Assign G/L accounts for WHT to WHT types.
Create G/L accounts in transaction FSP1 and assign each account to the corresponding
withholding tax type via IMG menu
Financial Accounting à Financial Accounting Global Settings à Withholding Tax à Extended
Withholding Tax à Postings à Accounts for Withholding Tax à Define Accounts for
Withholding Tax to be Paid Over.

8.6 Define Official Collection Codes

The official WHT codes cannot be used to specify collection codes. Instead, define them in
view V_T059Z_WITHCD2.
Transaction SM30: Maintain view V_T059Z_WITHCD2

8.7 Assign Condition Types to Withholding Tax Types

Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting
Global Settings -> Withholding Tax -> Extended Withholding Tax ->Calculation -> Withholding
Tax Types -> Assign Condition Types to Withholding Tax Types -> specify a country key and
carry out the assignment. Finally, save all new entries.

WHT Type Condition Type

CA ICW6
PA IPW6
SA ISW6
RA IRW6
GA IGW6

8.8 Maintain Tax Relevant Classification

Argentina Customizing: view V_1ATXREL, according to Note 178824
Tax rel. Text
CA Cofins Payment - Accumulated
GA General WHT payment - Accumulated
PA PIS WHT Payment - Accumulated
RA IR WHT Payment - Accumulated
SA CSLL WHT payment - Accumulated

8.9 Maintain Minimum Base Amount

Transaction SPRO: SAP Reference IMG -> Financial Accounting -> Financial Accounting
Global Settings -> Withholding Tax -> Extended Withholding Tax ->Calculation -> Minimum
and Maximum Amounts -> Define Min/Max Amounts for Withholding Tax Types -> specify a
minimum base amount for all withholding tax types relevant for base amount accumulation.
Finally, save all new entries.

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WHT type Currency Minimum Base Amount

CA BRL 5000,00
GA BRL 5000,00
PA BRL 5000,00
RA BRL 5000,00
SA BRL 5000,00

8.10 Maintain Withholding Tax SD Conditions

Transaction VK11.
Country BR. Maintain for all conditions a rate of 100%, assign validity.
Condition Tax Rel. Class. W/tax code
ICW6 CA CA
IPW6 PA PA
ISW6 SA SA
IRW6 RA RA
IGW6 GA GA

9 FI Tax Codes
Activate additional taxes for existing tax codes or create new tax codes.
Transaction FTXP

9.1 Taxes in Tax Codes Used in MM

9.1.1 To activate withholding taxes for accumulation:
Rate (%) Cond. Type Description Tax Group Acct. Key
100 ICOQ COFINS WHT Accum. WACO WAC
100 IPSQ PIS WHT - Accum. WAPI WAP
100 ICSQ CSLL WHT - Accum. WACS WAS
100 IIRQ IR WHT - Accum. WAIR WAI
100 IGEQ General WHT - Accum. WAT WAG

9.2 Taxes in Tax Codes Used in SD

9.2.1 To activate withholding taxes for accumulation:
Rate (%) Cond. Type Description Tax Group Acct. Key
100 ICOQ COFINS WHT Accum. WACO WAC
100 IPSQ PIS WHT - Accum. WAPI WAP
100 ICSQ CSLL WHT - Accum. WACS WAS
100 IIRQ IR WHT - Accum. WAIR WAI
100 IGEQ General WHT - Accum. WAT WAG

10 SD Tax Codes (View J_1BTXSDCV)

Activate additional taxes for SD tax codes by flagging the relevant taxes on the existing SD
tax codes or on newly created ones.

11 Master Data Changes

There are changes to master data necessary in order to correctly effectuate the new
withholding tax calculation.

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Customizing Guide: Withholding Tax Base Amount Accumulation, Classic Tax Calculation

11.1 Vendors (Transaction XK02)

Assign all WHT types and codes that are applicable.

11.1.1 Change the Fiscal address

In order to accumulate the withholding taxes for one vendor the fiscal address has to be
assigned to the main vendor. Using the transaction xk02, go the control window and assign
the fiscal address.

11.2 Customers (Transaction XD02)

Assign all WHT types and codes that are applicable.

11.2.1 Change the Fiscal address

In order to accumulate the withholding taxes for one customer the fiscal address has to be
assigned to the main customer. Using the transaction xd02, go the tab Control Data and
assign the fiscal address.

12 Tax Rates
12.1 Withholding Taxes
Maintain entries in transaction J1BTAX (R/3 4.7 or higher) or view J_1BTXWITHV. Use the
tax groups of dynamic exceptions you created.
You define either a general WHT collection code and a combined rate or the four individual
withholding taxes separately.
In case the specific tax rate is for withholding tax base amount accumulation check Origin of
Real Withholding Tax Calculation Base.

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