Configure Withholding Tax Rules for Items

Administrator Guide

Create withholding tax item groups.

Assign items to the tax item groups.

Security: Set Up: Tax
domain in the Common Financial Management functional area.

You can define withholding tax codes for specific items. You can then map these rules to locales within country-specific tax rules to override all other withholding tax code defaulting.

Access the

Create Withholding Tax Rule for Items

task.

In the

Tax Item Rule Type

prompt, select:

Revenue
for sales items.

Spend
for purchase items.

As you complete the task, consider:

Option	Description
Spend Category Revenue Category	If you leave Item blank, select a spend or revenue category to apply the rule line to all purchase, expense, or sales items with the selected category.
Tax Item Group	Select a tax item group to apply the rule line to all items in that item group.
Item	Select an item to apply the rule line to only that item.
Tax Code Override	Select the withholding tax code to use on transaction lines for this rule. This value overrides the default withholding tax code specified in a tax rule for any country that references this rule.
Worktags Tax Rule	Displays for spend tax item rules only. When you select a withholding tax rule for worktags, Workday evaluates the worktags within the transaction. If the worktags match the withholding worktag-level tax rule, Workday uses the withholding tax code from that rule instead of the value you select in Tax Code Override .

For Workday to apply the new withholding tax rule for items, select it in tax rules for countries.