Withholding Tax calculation based on Invoice Threshold
Dear OSC,
We have a requirement to calculate Withholding tax based on invoice threshold for El Salvador. i.e if the invoice is less than 100 USD, no WHT to be deducted, if the amount is more than 100 then 1% WHT to be deducted. Please share your inputs If anyone had similar requirement and resolved the issue.
Withholding Tax code Setup like below;
Rate structure : Amount Range
Period basis : Invoice
Amount Basis' : Gross Amount
Tax Rates : 0 - 100 0
100 - 1%
1) The withholding will not be applied for invoices below $100 - that is correct
2) Invoices amount above $100 . i.e. 200 then the withholding tax is calculated as $1 (1% of (200-100)), but expected is $2 (1% of invoice gross amount $200)