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Withholding taxes for Argentina implementation

Hi,

I would like to hear your thoughts on considerations and configuration changes for Argentina Purchase to Pay process? I understand that there would be a need for Turnover withholding tax (based on regions?), Income withholding tax and VAT withholding. It is also seen that the vendor tax percentage keeps changing every month and would this mean manual entry is needed a lot? The tax deducted should also be sent as a print certificate (generated from SAP) to the vendor.

And about the income withholding tax, can this process be clarified better? how often does this change? What is it dependent on?

The end goal would be to make payments from SAP to vendors rather than relying on a partner. Thanks.

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2 Answers

  • Jun 26, 2018 at 12:36 PM

    Hi Kiran,

    WT Tax in Argentina is done on payment. It doesn't change every month, but there are changes on the rate every year. Not all indicators are changed.

    You have 4 types of WT Tax:

    - Earnings (National) - Formulas & Fixed Rate

    - VAT (National) - Fixed Rate

    - Gross Income (State) - Fixed Rate

    - Social Security (National) - Fixed Rate

    We use SAP for payments and dont rely on 3rd party solutions as you need some fiscal reports. Configuration is complex, but not as much as in Brazil. You have to talk to a local user to understand business needs.

    Kind Regards

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  • Jun 26, 2018 at 01:51 PM

    Hi,

    I recommend you also to refer to SAP Knowledge Base Article 2463545 - FAQ of Argentina's Withholding Tax solutions

    Best Regards,

    Fernando Evangelista

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