Withholding tax report for filling tax returns


This article will help you understand how withholding tax report is generated in sap. These reports are needed in filling withholding tax returns with withholding tax authority.

 

What's the need for withholding tax reports ?

The person/ authority which deduct withholding tax from payment to payee are liable to file withholding tax returns with the tax authority before a date specified by tax authority. Non-compliance results in heavy penalty.

For filling withholding tax return, company has to submit withholding tax data and other details of the transactions in specific report format as described by tax authority.

 

How SAP helps in producing withholding tax report quickly ?

Whenever an accounting document is posted in sap which has withholding tax involved, withholding tax data along with other details of the transaction gets stored in various tables in the database.

Document header data gets stored in table BKPF

Document line item data gets stored in table BSEG

Withholding tax information gets stored in table WITH_ITEM

 

Now you know that data is present in tables, all you need to do is write a program (ABAP code) which can fetch data from these tables and display in the report format.

Sap provides some standard reports (standard program) which can fetch data from tables and display output in report format. Custom program can also be developed to fetch data from tables and display output in specific format as needed.

 

Let’s take example to understand how withholding tax reports can be prepared

Below accounting document is posted in sap

withholding tax document

Withholding tax data gets stored in table WITH_ITEM

withholding-tax-report fetches data from WITH_ITEM

Sap offers some standard reports; one of them is shown below (just as an example).

Standard withholding tax report: S_P00_07000134

withhodling-tax-report

Similarly customer programs (reports) can be written to fetch data from tables (database) and display output in specific report format.