Withholding Tax with Gross-up on intercompany transactions (Oracle Fusion)
Summary:
We have a requirement to gross up the invoice amount with WHT for paying entity which is coming from Intercompany transactions.
Below is the example
Scenario Recap
Description | Example |
|---|---|
Supplier | ABC Business Unit |
Receiver | XYZ Business unit |
Service | Management Fee |
Agreed Value | Net AED 100 |
WHT Rate | 10% |
Objective | XYZ bears the WHT and ABC receives 100 AED net |
Computation | Grossed-up amount = 100 / (1 − 0.10) = 111 AED |
WHT = 11 AED | Paid to tax authority |
Payment to ABC | 100 AED |
Total Expense in XYZ Books | 111 AED |
Please let us know if there are any workaround solutions in AP Taxes to achieve this requirement.