KRISHNAMOHAN JOSHI

FUSION TAX

Setting up Withholding Tax

The following is the Enterprise Structure which would be considered

Create a Tax Authority Supplier with a Valid Supplier Site

Page 1|6
 KRISHNAMOHAN JOSHI
FUSION TAX

Manage Regimes

Save and Close

There are 2 ways of creating the Withholding Regime to Rate

1) Use the Regime to Rate flow similar to the transaction tax , by following Manage
Taxes>Manage Tax Statuses> Manage Rates and Recovery Rates > Manage
Jurisdiction
2) Use the Manage Tax Codes Task to complete the Regime to Rate for withholding
tax in a single window

Please note if the option 1 is chosen the withholding tax code needs to be manually
added under the Manage Withholding Classifications

Page 2|6
 KRISHNAMOHAN JOSHI
FUSION TAX

Manage Tax Codes

Click +

Save and Close.

This action will enable the tax for the transactions with Tax applicability = Not
Applicable under the Rule Defaults

Page 3|6
 KRISHNAMOHAN JOSHI
FUSION TAX

Manage Tax Lookup Codes

Query for Lookup Type=ZX_WHT_TAX_CLASSIFICATION_CODE

Ensure that the awt tax code defined is present under the lookup else create a row

Manage Configuration Owner Tax Options

Save and Close

Page 4|6
 KRISHNAMOHAN JOSHI
FUSION TAX

Manage Tax Rules

Submit

Ensure to Enable User Withholding Tax Option under the Income Tax Region for the
supplier.

Ensure to Enable the Allow Withholding Tax at the supplier site level. Create an invoice
for the supplier

Page 5|6
 KRISHNAMOHAN JOSHI
FUSION TAX

Provide the Withholding tax code on the invoice line, Save & Validate

Navigate to Withholding taxes tab to see the withholding amount

Validate the invoice to the AWT amount

Page 6|6