Setting up withholding tax [AX 2012]

Updated: March 15, 2011

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

In many countries/regions, a buyer is legally responsible for paying withholding tax. Withholding tax is tax on non-inventory deliveries, or services, that are delivered by a supplier who is not an employee of the company. The supplier submits an invoice for services to the buying company, and then receives payment for this invoice.

The buyer is legally responsible for withholding a certain percentage of the amount of the invoice at the time of payment. The net amount, which is the amount of the invoice minus the withholding tax, is paid to the supplier. The tax that is withheld is posted to a ledger account for withholding tax. This tax is then periodically paid to the tax authorities.

The topics in this section provide information about how to set up withholding tax.

Set up withholding tax in System administration and General ledger

Calculate and post withholding tax

(Global, AUS, ITA) Set up withholding tax for a vendor

(THA, SAU, GBR, IRL) Set up a withholding tax settlement period and attach a withholding tax code

(THA, SAU, GBR, IRL) Set up a withholding tax code

(THA, SAU, GBR, IRL) Set up a ledger account for withholding tax

(THA) Set up withholding tax parameters

(THA, SAU, GBR, IRL) Create an item withholding tax group and attach a withholding tax code

(THA, SAU, GBR, IRL) Set up a withholding tax authority

(THA, SAU, GBR, IRL) Set up a ledger posting group and attach it to a withholding tax code

(THA, SAU, GBR, IRL) Set up a withholding tax group and attach it to a vendor or customer

(SAU) Generate the withholding tax reports


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