The Withholding Tax Is Calculated Wrong For Income Tax Withholding (Doc ID 1995109.1)

Last updated on MARCH 08, 2017

Applies to:

Oracle Financials for the Americas - Version 12.2.3 and later
Information in this document applies to any platform.

Symptoms

On : 12.2.3 version, Argentina Payables

The withholding tax is calculated with a wrong value for Income Tax Withholding calculation.

The issue can be reproduced at will with the following steps:

1. Responsibility: Oracle Payables - Argentina localization
2. Path: Invoices -> Enter -> Invoices
3. Create a prepayment invoice and save.
4. Validate the invoice.
5. Pay the invoice.

The withholding tax is calculated with a wrong value for Income Tax Withholding calculation.
It is working for other withholding taxes.

NOTE: The Income Tax Withholding issue is only for cases when prepayment is involved. The issue does not occur with regular payments.

The amount withheld upon payment of prepayment is OK. The issue is when the user pays the remaining amount, as it seems the calculation table does take the taxable amount twice (one for the prepayment invoice part and one for the final invoice part).

For example, you issue a prepayment of 50% and pay it. The system calculates a given withheld amount based on the taxable amount of the prepayment. Then you enter the final invoice (100%), apply the 50% already paid and pay the remaining amount. Upon doing it, the system calculates a withheld amount based on the 150% (not the 100%) of the taxable amount. That is explained in the Excel file attached for this thread.

 

Cause

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