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Withholding Tax with Gross-up on intercompany transactions (Oracle Fusion)

edited Nov 18, 2025 12:36PM in Tax & Global

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.

Tagged:

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