Withholding Tax

Oracle has the provided the ability to apply withholding tax both at invoice level and payment level, It can be enabled as per the requirement of the local tax authority and deposit the tax money when necessary with them

In Payables – under Payables options, we can provide to the user to enable him to apply the Withholding Tax At Invoice Validation and Payment time. There will also be one more option added to enable the user to create withholding invoices automatically at the time of application of Withholding Taxes.

Withholding Tax region options is allowed to be changed at any point of time. It can be toggled between ‘Never’, ‘At Invoice time’, ‘At Payment time’, and ‘At Invoice Validation and Payment time’ at any time. It is to be ensured that whenever this is done the columns are also updated at the supplier site level and no defaulting happens irrespective of the values at the supplier site level.

Payables Option level setup

Supplier level setup

Supplier site level