2022-09-10 337267

337267 - Converting from simple to extended

withholding tax
Version 13 Type SAP Note
Language English Master Language German
Priority Recommendations / Additional Info Category Consulting
Release Status Released for Customer Released On 16.04.2003
Component FI-AP-AP-Q ( Withholding Tax (Calculation) )

Please find the original document at https://launchpad.support.sap.com/#/notes/ 337267

Symptom

Up to now, you used the functions for simple withholding tax. After upgrading to
R/3 Release 4.0 or later, you want to use extended withholding tax instead of
simple withholding tax.
The following is a list of reasons for using the extended withholding tax
instead of simple withholding tax:

• It is possible to make an extended withholding tax posting at the payment

and invoice posting times.

• It is possible to make an extended withholding tax posting both on the

credit and on the debit side.

• It is possible to post several extended withholding tax categories per line

item in parallel.

• The system posts extended withholding tax for partial payments.

• It is possible to consider minimum amounts, maximum amounts and exemption

limits.

• It is possible to use accumulation.

• ...

Even if the features of the simple withholding tax fulfill your current needs
for your business processes, SAP still recommends you convert to extended
withholding tax since the simple withholding tax will not continue to be
developed.

In any case, conversion to extended withholding tax is required in the following

situation:
As of Release 4.6C, only Transaction MIRO is available for Logistics Invoice
Verification. If you want to split the amounts in Transaction MIRO manually
(several lines in tab title Amount split), only the extended withholding tax is
supported and no longer the simple withholding tax.
This means, if you want to use Logistics Invoice Verification with amount split
and withholding tax in Release 4.6C, then you must convert to extended
withholding tax.
If you also use Transaction MIRO in Release 4.6B, you also have to convert to
the extended withholding tax (that is, if you use the amount split).
Please note that the simple withholding tax is not supported in Transaction MIRO
until Note 371824, i.e. the withholding tax data of the simple withholding tax
are not transferred to the FI document correctly until this note has been

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2022-09-10 337267

implemented.

Activating the extended withholding tax is generally not possible, since you
cannot continue to process open items already posted in the system. For this
reason, you need a tool to convert the Customizing data, master data and
transaction data that is available in the system, and so that you can then use
extended withholding tax.

Other Terms

Withholding tax, migration, conversion, changeover, FWTM, simple, classic,

extended, withholding tax type, withholding tax code, WTMG

Reason and Prerequisites

You must use R/3 Release 4.0 or later. If you have used the conventional invoice
verification up to now, then, before starting the withholding tax conversion,
you must change your system over to the Logistics Invoice Verification. The
conventional invoice verification is not supported by extended withholding tax.

Solution

The tool for the conversion from simple to extended withholding tax has been
delivered with Note 186989 (Support Package 26 for Release 4.6B or Support
Package 15 for Release 4.6C).
Under no circumstances should you activate the extended withholding tax without
first converting the existing data in your system using the conversion tool.
The tool is not suitable for the following country versions (except if you use
the standard withholding tax solution for simple withholding tax instead of a
country-specific withholding tax solution): Columbia (see Note 309194),
Argentina, Brazil, Greece, Mexico, Venezuela, South Korea (see Note 327869),
India, Thailand.
Contact the national subsidiaries of SAP.
For Israel, it is necessary to start a report in addition to the conversion
tool. Contact the national subsidiary or partner company of SAP.

Software Components

Software Component Release

SAP_APPL 40A - 40B

SAP_APPL 45A - 45B

SAP_APPL 46A - 46B

SAP_APPL 46C - 46C

Other Components

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2022-09-10 337267
Component Description

FI-AR-AR-Q Withholding Tax (Calculation)

FI-AP-AP-Q1 Withholding Tax (Reporting)

MM-IV-LIV Logistics Invoice Verification

FI-AR-AR-Q1 Withholding Tax (Reporting)

Support Package

Software Component Release Support Package

SAP_APPL 46B SAPKH46B26

SAP_APPL 46C SAPKH46C15

This document refers to

SAP Note/KBA Title

546564 FAQ: Withholding tax

538780 WTMG: Spain - withholding tax changeover

487228 WTMG Withholding tax changeover has a low performance

450076 Extended withholding tax and ALE

433443 WTMG: Italy - INPS tax

432692 WTMG: USA - Withholding tax for states

431952 WTMG: France - withholding tax for customers

390148 WTMG: Composite note for withholding tax changeover

371824 MIRO: Processing of withholding tax

363650 Withholding Tax Configuration for 1099MISC

186989 Changeover withholding tax

1382543 FAQ: Withholding tax

1088480 Change in minimum threshold for Tax Invoice in Australia

106696

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2022-09-10 337267

This document is referenced by

SAP Note/KBA Title

2186938 F5786 with cross company code

363650 Withholding Tax Configuration for 1099MISC

1382543 FAQ: Withholding tax

1414152 accounting document does not have withholding tax

1088480 Change in minimum threshold for Tax Invoice in Australia

186989 Changeover withholding tax

450076 Extended withholding tax and ALE

371824 MIRO: Processing of withholding tax

546564 FAQ: Withholding tax

390148 WTMG: Composite note for withholding tax changeover

538780 WTMG: Spain - withholding tax changeover

487228 WTMG Withholding tax changeover has a low performance

433443 WTMG: Italy - INPS tax

432692 WTMG: USA - Withholding tax for states

431952 WTMG: France - withholding tax for customers

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