Dear Marssel,
Sorry for a late reply.
Yes, you are correct. I am looking for Withholding tax for personal incoming in Brazil.
I have already defined my defined my tax code for WHT Formula under S_ALR_87003618.
User requires WHT calculated at the time of invoice.
Also accumulation type as 'per month'
For more understanding on User requirement of calculation of WHT pls find below example:
For ex: for IC / R5 , for an invoice amount of BRL 6000:
Invoice amount will be contained in the slab - that has the rate of 27.5%
the Gross WHT will be BRL 1650 (Invoice amount BRL 6000 X 27.5%)
User requires a standard amount of 869.36 to be reduced from the WHT amount (BRL 1650). This standard amount varies according to the various slabs.
Net WHT = BRL 1650 - 869.36 = BRL 780.64
Per SAP calculation - according to slabbing method:
Per SAP suggested customisation of Without exemption
If my vendor invoice amount is BRL 6000 and the relevant tax code is R5, then the WHT is computed to BRL 859.42 (Pls refer attached file)
| IC/R5 | 6000 | |||
| TO' Base amount | Reduction of Base Amount | % rate | Amount - BRL | |
| 1,710.78 | 0 | 0 | 0.00 | |
| 2,563.91 | 1,710.79 | 7.5 | 63.98 | |
| 3,418.59 | 2,563.92 | 15 | 128.20 | |
| 4,271.59 | 3,418.60 | 22.5 | 191.92 | |
| 999,999,999,999.00 | 4,271.60 | 27.5 | 475.31 | |
| 859.42 |
According to your screenshot, you have filled up columns in 'Decreased reduction of base amount'
However per my understanding and SAP's comments on that (as per previously raised OSS SAP call):
SAP’s comments on column ‘Decreased Reduction of Base Amount’:
Don't know why you wanted to fill "dec.red. bse. amount" but I can tell you that there is no sense in filling it, without filling "Reduced withholding tax rate" on the same screen.
Both fields work together and they are applied to the calculation only if there is an exemption in the vendor master. If there is no exemption to be used then these fields are not needed.
Thus, in the light of the above explanation by SAP, the column ‘Decreased Reduction of Base Amount’ doesn’t play any role in the current customization because of:
• The column "Reduced withholding tax rate" is not filled in the current customization
• The vendor master is not updated with exemption details.
Further, we have INSS installed as WHT.
Can you pls help me understand, what tax dependencies are you referring between IRRF and INSS?
If possible, can you kindly guide me with some customisation document, that will lead me towards the user requirement?
Pls let me know for any more information, if required.
Many thanks for looking into this issue!!
Warm regards,
Priti