Ecuador Withholding taxes
Hi,
We´re implementing PeopleSoft financial modules for a Ecuador company.
In Ecuador there are two types of withholding taxes:
- Standard Withholding : a % over the basis amount is withhold. It´s setup at supplier level and PS cobers this functionality
- VAT withholding: they withhold a % over the calculated VAT. is there any functionality to cober this requirement?
Example
Voucher 1:
Basis Amount 1000
VAT: 21% = 210
Total voucher: 1000+ 210= 1210
Supplier Withholding = 10%1000= 100 (this will be pay to the Tax authority)
VAT Withholding ; 70% 210 = 147 (this will be pay to the Tax authority)
Total Payment to the supplier: 1210 -100-147 = 963