Use the Withholding Tax Certificates and Exceptions window to define Withholding Tax type tax code rate exceptions for a supplier site. You can define a certificate to specify a rate exception for a Withholding Tax type tax code for all invoices of a supplier site. You can also define a rate exception for a Withholding Tax type tax code for a single invoice.

Defining Withholding Tax Certificates and Exceptions

Prerequisites

• Enable the Use Withholding Tax Payables option. See: Payables Options.

• Define Withholding Tax type tax codes. See: Tax Codes.

• Enter withholding tax details for suppliers: See: Defining Tax Details.

• Payables predefines the Standard certificate type. Define additional certificate types in the Oracle Payables Lookups window. See: Lookups.

To define a withholding tax certificate

1. In the Withholding Tax Certificates and Exceptions window, enter a supplier name or supplier number, and supplier site for which you want to define a certificate or an exception.

2. In the Certificate region, enter the Withholding Tax type tax code for which you want to define a withholding tax certificate.

3. Enter the certificate number. This number can be user-defined or it can be a number assigned to a certificate issued to the supplier by the tax authority.

4. Enter the certificate type. Payables predefines the Standard type. You can define additional certificate types in the Oracle Payables Lookups window.

5. Enter the certificate priority. If you have one or more certificates for the same Withholding Tax type tax code with an overlapping effective date range, Payables applies the certificate with the highest priority (1 = highest priority). Only one certificate can be enforced at a time.

6. Enter the certificate tax rate for the Withholding Tax type tax code. If the certificate specifies that the supplier site is exempt from this tax code, then enter 0 as the rate.

   Note: The tax rate for a certificate overrides all rates on the withholding tax.

7. Enter the effective date range for the certificate tax rate. If you specify a unique priority for each certificate, then you can enter overlapping effective date ranges on different certificates for the same Withholding Tax type tax code for the same supplier site.

To define a withholding tax exception:

1. In the Withholding Tax Certificates and Exceptions window, enter the supplier name, supplier number, and supplier site for which you want to define an exception.

2. In the Exception region, enter the Withholding Tax type tax code for which you want to define an exception.

3. Enter the invoice number to which the current exception applies. If you enter the invoice before entering the exception, select from a list of values the invoice number to link the exception to the invoice. If you enter the exception before entering the invoice, enter the unvalidated invoice number and Payables will automatically link the exception to the invoice number when you enter the invoice.

4. Enter the exception rate for the invoice.

   Note: The tax rate for an exception overrides all rates on the withholding tax.

5. Enter the effective date range for the exception. If you enter an incorrect invoice number for an exception, enter an effective date range in the past to make an exception rate for an invoice invalid.