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Whithholding tax formula

Good day experts,

Say for WH tax type A1 and WH tax code 01

I want to configure this

for base amount from 0 to 1500 USD a tax rate of 10%

for base amount 1501 to 2500 USD a tax rate of 20%

but this rate should apply for the whole base amount, that means if i have the base amount of 2000 the WH tax amount should be 200

I tried using "Define formulas for calculating WH tax" but I just don't get what expected because it is always considering the first scale.

I hope I'm clear with the requirement, if not please let me know

Thank you very much for the assistance.

Regards,

Antonio

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3 Answers

  • Posted on May 30, 2013 at 10:05 AM

    HI,

    If base amount is 2000 then you expect 200 or 400?

    B/R

    Prashant Rane

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  • Posted on May 30, 2013 at 02:04 PM

    HI Antonio,

    Please maintain the below.

    Tax type : A1

    Selection Accumulation option

    starting month :1

    Tax Code: 01

    don't maintain the rate

    click checkbox : Withholding tax Form

    SPRO --> Define formula's for withholding tax calculation

    here maintain

    A1 01

    slab wise maintain the rates.

    Regards

    Madhu M

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  • Posted on May 30, 2013 at 06:08 PM

    Hello again,

    In the example, using accumulative per month or no accumulation:

    if I configure the formula of WH I indicate:

    Base Amount WH tax Reduct. bas. amt

    1500 10% 0

    2500 20% 0

    Then, the tax amount calculated for 2000 is (2000x20%) + (1500x10%) = 550

    If i configure with reduction base amount

    Base Amount WH tax Reduct. bas. amt

    1500 10% 0

    2500 20% 1500

    Then the tax amount calculated for 2000 is (2000-1500)*20% + 1500*10% = 250

    I expect that for 2000 the tax amount would be 400

    (just in case, the numbers I used for the example are just for clarify the situation, real situation are with another percentages and base amounts)

    Thank you very much for your time!

    Regards,

    Antonio

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